Mortgage paid ..Next steps?

[tom_tom]

Intro:
Me: 43yo, very stable private sector roughly 130K (includes bonus but excludes benefits)
OH: 39yo, strong profession Basic 125K + Bonus Range 40-50K and Benefits pack.
1 child in primary school

Pension:
Me: DB and DC Max'd out with employer
OH: DC Max'd out with employer

Property:
PPR Value: 450K no mortgage
No other debts

Other:
100K An Post + 200K Deposits +collage fund + rainy day money + various (company share schemes etc)

Question: We've worked hard been prudent and are now accumulating a lot year-year
in deposit accounts ....we have a good work/life and enjoy our jobs so taking a step back not on the agenda ...

What's folks financial view on upgrading the PPR (to say 700K range) or maybe keep existing PPR currently in commuter land and buy
a Dublin city bolthole or holiday home in Ireland ..largely a lifestyle choice I guess ...it would be increased exposure
to property & maintenance but could good long term store of wealth (plus enjoyment) vs putting post tax earning to
work in the markets (we have exposure in our pensions).

 

[goingforgold]

I would be more inclined to purchase the dream house in ideal location for work rather than buying a separate Dublin bolthole. You have the wealth to do this mortgage free so don't see point of having a daily commute (and having lots of cash earning little or no interest) if it's something you can comfortably avoid. It's not clear what your total savings are but along with selling current PPR you can comfortably buy an 800k house mortgage free it seems.
I agree re exposure to markets, ie you have a lot of exposure through pensions already so others can advise on what best to do with future accumulation of wealth...clearly a great problem to have!!

 

[tom_tom]

thanks for reply and for sure a nice problem to have ... its been a lot of hard work and being frugal that got us here ...but now we running big surplus every year its a matter of deciding what to do next ... ..I have the budget for 700-800K house but in my current area the housing stock at that level is low ...we only occasionally have to go into Dublin for work (even before CVD19 we had a lot of flex)

..its just a matter of me thinking maybe the surplus should be going into a property asset without having to be be a landlord... (and yes we may enjoy a new area/house or crash pad as a bonus) ...and then there's the alternative ...0% on deposit or taking other forms of investment risk.

I would be more inclined to purchase the dream house in ideal location for work rather than buying a separate Dublin bolthole. You have the wealth to do this mortgage free so don't see point of having a daily commute (and having lots of cash earning little or no interest) if it's something you can comfortably avoid. It's not clear what your total savings are but along with selling current PPR you can comfortably buy an 800k house mortgage free it seems.
I agree re exposure to markets, ie you have a lot of exposure through pensions already so others can advise on what best to do with future accumulation of wealth...clearly a great problem to have!!

 

[Dan_The_Man]

its like you took some of the great advice on offer from AAM and executed it well over last 15 - 20 yrs (dont look to invest whilst carrying debt, max pension etc) ..now you the other side of that your wondering ..whats next? ...you said your frugal which put you in a strong position.....so i think what your saying is you don't see a upgraded PPR as the 'dream' house ..you just want to explore what (if any) are the financial benefits of having more money in your PPR?

 

[tom_tom]

more or less ..yup that's it. folks ...any advise ...owning a PPR is considered by many to be a smart financial move ....but is there a point at which having a more expensive house makes sense (if you can afford it)?

+ Down sizing flex
+ Long term value of house with plenty of chimney tops around it vs commuter towns
+ Tax free gains (assuming there is any)


vs

- Extra maintenance (assumes its a larger property ..but that's not always the case)
- property tax

its like you took some of the great advice on offer from AAM and executed it well over last 15 - 20 yrs (dont look to invest whilst carrying debt, max pension etc) ..now you the other side of that your wondering ..whats next? ...you said your frugal which put you in a strong position.....so i think what your saying is you don't see a upgraded PPR as the 'dream' house ..you just want to explore what (if any) are the financial benefits of having more money in your PPR?