Hi. Hoping I can get some advice. We're looking at doing a significant job to a 1900s house. Needs re-wire, re-Plumb, insulation, new windows, refurb (kitchen, bathroom). So that's the bare minimum. This would cost 150-200k est.
We have tenders in for a much bigger job, including the bare minimum plus a 2 storey extension giving us bigger kitchen dining, additional living room, another bathroom (2 grown kids, 2 adults, 1 small bathroom), better light and space. Tenders coming in around 450k all in.
We're finding it difficult to make up our minds....do the minimum, the bigger job, or move to avoid the hassle of doing any job. We love our current location so moving is unlikely. Though if house market were to crash it might be an option as we'd be trading up.
Financially we're in a pretty good place, summary below, though doing the big job means borrowing about 250k, leaving total borrowing at about 400k with house value about 1.3m.
Personal details
Age: 49
Spouse’s/Partner's age: 48
Number and age of children: 14 and 17
Income and expenditure
Annual gross income from employment or profession: 135k
Annual gross income of spouse: 25k
Monthly take-home pay: 7k
Type of employment: private sector, PAYE
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth 900k, 140k outstanding.
240k cash.
Family home mortgage information
AIB tracker, 1% margin
Other borrowings – None
Do you pay off your full credit card balance each month? Yes
Buy to let properties: None
Other savings and investments: None
Do you have a pension scheme?
Yes. Contribute 4% salary per month matched by employer, worth about 35k.
Also have a buyout bond worth about 920k. I could access at age 50 if I needed to.
Do you own any investment or other property?
Potential company flotation worth 60k-80k in next 2 years.
Other information which might be relevant
We both have a parent that may leave us assets/money. In their late 70s and healthy, hopefully they'll live another 20nyears....reason I mention it (at the risk of being crass) is that we're likely going to see a lump sum of 200k or thereabouts at some stage.
Life insurance: yes, via work
What specific question do you have or what issues are of concern to you?
Should we borrow 250k to do the big job?
Someone please tell me how bad an idea it is to have as a rainy day idea to access the buyout bond at 50! And also how bad an idea it is to make this decision on potential income via inheritance at an unspecified date!
That said, assuming work is secure (it is v likely to be) and we stress test borrowing expecting higher interest rates, then it feels we'll get q fair bit of bang for our buck with the bigger job. House would be worth about 1.3m after it. South Dublin, nice area.
Should we wait for prices to come down - may never happen, and the sooner we do the big job the better.
We bought near peak in Aug 2008, feels like we might be timing this awfully again....interest rates going up, inflation, cost of refurb, bloody awful seai grant schemes etc.
We have tenders in for a much bigger job, including the bare minimum plus a 2 storey extension giving us bigger kitchen dining, additional living room, another bathroom (2 grown kids, 2 adults, 1 small bathroom), better light and space. Tenders coming in around 450k all in.
We're finding it difficult to make up our minds....do the minimum, the bigger job, or move to avoid the hassle of doing any job. We love our current location so moving is unlikely. Though if house market were to crash it might be an option as we'd be trading up.
Financially we're in a pretty good place, summary below, though doing the big job means borrowing about 250k, leaving total borrowing at about 400k with house value about 1.3m.
Personal details
Age: 49
Spouse’s/Partner's age: 48
Number and age of children: 14 and 17
Income and expenditure
Annual gross income from employment or profession: 135k
Annual gross income of spouse: 25k
Monthly take-home pay: 7k
Type of employment: private sector, PAYE
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving
Summary of Assets and Liabilities
Family home worth 900k, 140k outstanding.
240k cash.
Family home mortgage information
AIB tracker, 1% margin
Other borrowings – None
Do you pay off your full credit card balance each month? Yes
Buy to let properties: None
Other savings and investments: None
Do you have a pension scheme?
Yes. Contribute 4% salary per month matched by employer, worth about 35k.
Also have a buyout bond worth about 920k. I could access at age 50 if I needed to.
Do you own any investment or other property?
Potential company flotation worth 60k-80k in next 2 years.
Other information which might be relevant
We both have a parent that may leave us assets/money. In their late 70s and healthy, hopefully they'll live another 20nyears....reason I mention it (at the risk of being crass) is that we're likely going to see a lump sum of 200k or thereabouts at some stage.
Life insurance: yes, via work
What specific question do you have or what issues are of concern to you?
Should we borrow 250k to do the big job?
Someone please tell me how bad an idea it is to have as a rainy day idea to access the buyout bond at 50! And also how bad an idea it is to make this decision on potential income via inheritance at an unspecified date!
That said, assuming work is secure (it is v likely to be) and we stress test borrowing expecting higher interest rates, then it feels we'll get q fair bit of bang for our buck with the bigger job. House would be worth about 1.3m after it. South Dublin, nice area.
Should we wait for prices to come down - may never happen, and the sooner we do the big job the better.
We bought near peak in Aug 2008, feels like we might be timing this awfully again....interest rates going up, inflation, cost of refurb, bloody awful seai grant schemes etc.
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