Familyman
Registered User
- Messages
- 8
I previously posted here , and got great advice, but will start a new thread to update.
Personal details
Age: 45
Spouse’s/Partner's age: 43
2 kids, ages 6 and 5
Income and expenditure
Annual gross income : over €200,000, self-employed, unpredictable
Annual gross income of spouse: €61,000, private sector
Monthly take-home pay combined: approx €11k per month
Saving heavily
Summary of Assets and Liabilities
Family home worth €720k with a €320k mortgage
Cash of €125k, will be €175k by end of year, just sitting in a current account
Buy to Let Property worth €250k to €280k, no mortgage
Family home mortgage information (Dublin)
Lender - Avant
Interest rate - 1.95%, fixed for 3 more years, €1,750 a month
No other borrowings
Buy to let property (one remaining in Midlands)
Value: €280,000 (according to estate agent, but maybe optimistic, similar in worse condition sold for €235k last year)
Rental income per year: €9,000, but could be €15,000 in October
Rough annual expenses other than mortgage interest: €2,000
No mortgage. CGT not an issue if sell (historic losses still around).
Other savings and investments:
Pension: Approx €100k. Only started recently but I pay in tax-free max (€28,500), and will keep doing so.
Spouse pension: Approx 40k
Spouse pays 7.5%, matched by employer, but this year also uses the rent to make AVC to increase payment to her tax-free max.
Other information which might be relevant
Life insurance: no, just mortgage protection. No income protection.
10 year old car. Short commutes by bike.
Child care fees reducing dramatically (ECCE and move from creche to primary).
What specific question do you have or what issues are of concern to you?
We got really helpful advice here four years ago, and sold an investment property and more recently fixed our family home mortgage for 4 years, upped pension payments, (but didn't get income protection). I am maxing my pension payments, my wife this year used her rental income too for AVC. We are now very very comfortable, and slowly this is sinking in. We are living way within our means, from habit more than anything. We are treating ourselves a bit - Instead of always shopping in Lidl, we now do every second week, Lidl then Dunnes! And I maybe want to buy a 3- to 5-year old car. And we are talking about maybe our first foreign holiday in 5 years! We both like our work, and the amount of work we are doing.
But the kids are getting bigger, and our house is in a nice area but small. And our cash is devaluing with inflation. But we don't want to lock it into anything until we have a plan.
The very long term tenant in the buy-to-let has given notice, which gives us options - sell, or let again at a market rate (tenant was on a very low rent). We also want to either do an extension on family home or move to a bigger family home in the next 1 to 3 years.
My wife's appetite for property investment as a pension has started to return (she sold 2 of her 3 btls over the last 5 years), but interest rates for buy-to-lets are crazy and my appetite for bank debt is quite low and my fear of interest rates is quite high.
Assets -
BTL - €250k after sale costs, or €9,000 pa after tax
Equity in family home - €400k
Savings - €125k, could be €250k by end of next year
Current loan - €320k
I have started doing the maths on a few options eg
1. Sell BTL, use proceeds plus savings to extend/move, keep mortgage as is.
2. Sell BTL, use proceeds plus savings plus a bit more loan to get great family home.
3. Sell BTL, rent out current family home (could get €30,000 pa before tax to cover current mortgage at 1.95% but would not cover at 7%!!)), and use savings plus proceeds of BTL plus much bigger mortgage (approx €700,000) to get bigger family home.
4. Keep BTL, get additional €200,000 mortgage on top of savings to do big extension or buy bigger house.
5. Any other option - get loan against BTL / pay off mortgage / buy shares / etc ???
I know we are in a great place, but at the moment I have option paralysis and fear of risk, and my wife thinks btls are good pensions. Any thoughts?
Personal details
Age: 45
Spouse’s/Partner's age: 43
2 kids, ages 6 and 5
Income and expenditure
Annual gross income : over €200,000, self-employed, unpredictable
Annual gross income of spouse: €61,000, private sector
Monthly take-home pay combined: approx €11k per month
Saving heavily
Summary of Assets and Liabilities
Family home worth €720k with a €320k mortgage
Cash of €125k, will be €175k by end of year, just sitting in a current account
Buy to Let Property worth €250k to €280k, no mortgage
Family home mortgage information (Dublin)
Lender - Avant
Interest rate - 1.95%, fixed for 3 more years, €1,750 a month
No other borrowings
Buy to let property (one remaining in Midlands)
Value: €280,000 (according to estate agent, but maybe optimistic, similar in worse condition sold for €235k last year)
Rental income per year: €9,000, but could be €15,000 in October
Rough annual expenses other than mortgage interest: €2,000
No mortgage. CGT not an issue if sell (historic losses still around).
Other savings and investments:
Pension: Approx €100k. Only started recently but I pay in tax-free max (€28,500), and will keep doing so.
Spouse pension: Approx 40k
Spouse pays 7.5%, matched by employer, but this year also uses the rent to make AVC to increase payment to her tax-free max.
Other information which might be relevant
Life insurance: no, just mortgage protection. No income protection.
10 year old car. Short commutes by bike.
Child care fees reducing dramatically (ECCE and move from creche to primary).
What specific question do you have or what issues are of concern to you?
We got really helpful advice here four years ago, and sold an investment property and more recently fixed our family home mortgage for 4 years, upped pension payments, (but didn't get income protection). I am maxing my pension payments, my wife this year used her rental income too for AVC. We are now very very comfortable, and slowly this is sinking in. We are living way within our means, from habit more than anything. We are treating ourselves a bit - Instead of always shopping in Lidl, we now do every second week, Lidl then Dunnes! And I maybe want to buy a 3- to 5-year old car. And we are talking about maybe our first foreign holiday in 5 years! We both like our work, and the amount of work we are doing.
But the kids are getting bigger, and our house is in a nice area but small. And our cash is devaluing with inflation. But we don't want to lock it into anything until we have a plan.
The very long term tenant in the buy-to-let has given notice, which gives us options - sell, or let again at a market rate (tenant was on a very low rent). We also want to either do an extension on family home or move to a bigger family home in the next 1 to 3 years.
My wife's appetite for property investment as a pension has started to return (she sold 2 of her 3 btls over the last 5 years), but interest rates for buy-to-lets are crazy and my appetite for bank debt is quite low and my fear of interest rates is quite high.
Assets -
BTL - €250k after sale costs, or €9,000 pa after tax
Equity in family home - €400k
Savings - €125k, could be €250k by end of next year
Current loan - €320k
I have started doing the maths on a few options eg
1. Sell BTL, use proceeds plus savings to extend/move, keep mortgage as is.
2. Sell BTL, use proceeds plus savings plus a bit more loan to get great family home.
3. Sell BTL, rent out current family home (could get €30,000 pa before tax to cover current mortgage at 1.95% but would not cover at 7%!!)), and use savings plus proceeds of BTL plus much bigger mortgage (approx €700,000) to get bigger family home.
4. Keep BTL, get additional €200,000 mortgage on top of savings to do big extension or buy bigger house.
5. Any other option - get loan against BTL / pay off mortgage / buy shares / etc ???
I know we are in a great place, but at the moment I have option paralysis and fear of risk, and my wife thinks btls are good pensions. Any thoughts?