Mortgage on home
E112,000
Savings and investments:
E5,000 savings in cash. Circa E70K shares in one MNC from previous employment. E10K cryptocurrency, E10K in various US shares.
-Should I be contributing to AVCs to my pension or buy notional service instead? I only started in the public sector recently
-I would like to move to a house in the next few years as my child gets bigger and more active-we are in an apt currently, which is fine but would prefer own garden, driveway etc. How realistic are my chances of getting one? I am on a 4 day week currently but possibly move to more hours when my child starts primary school. Top of the grade salary scale for my role is 85k.
I don't think you will have a choice, it will be option 2.My question is if I am better off:
1. Selling off my shares and net of CGT, use that as a basis to build up a deposit. So 20 percent deposit would be 100k.
2. Use proceeds of share sales to instead pay off as much as possible on existing mortgage. I enquired with KBC and my breakage fee would be zero currently for the next 10 working days.
Hi OkGo,I don't think you will have a choice, it will be option 2.
In option 1, you would still have an outstanding mortgage of ~€100k and you are looking to borrow the remaining €400k. Even if you went back full time and reached the top of the pay scale, you are way outside the 3.5 LTI limits so unfortunately you are not in a position to own both properties at once.
Your options are to sell first (and maybe move in with family temporarily) or buy/sell as part of a chain.
If you sell first, you have lots of cash on hand and with a mortgage AIP , you are an ideal buyer from an EA's or sellers point of view. But it comes with the risk of an indefinite stay with family or renting while you are bidding.
If you don't sell first and try to sell as part of a chain, it can also be complicated and you might not even be considered for bidding as a lot of sellers don't want the hassle of dealing with a chain. The upside to this is if it works out, you move straight from one property to the other.
If you decide to go to chain route, you should probably keep a bigger cash reserve on hand and use the excess to pay down the mortgage. You don't need the 20% deposit but there will be costs associated with buying/selling such as EA and solicitors fees, holding deposits etc
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