Barbara Bunter
Registered User
- Messages
- 24
Saving €500 a month off those salaries + rental income seems very low.
We owe €200,000 on a second property worth €250,000. The rent is €1,250 a month and the mortgage rate is 0.5%.
He also receives share options and has around €50,000 worth (realisable next year).
So you are getting a net return of €4,500 a year.
Good point. House prices can rise as well as fall.
IMO that is a crazy amount for monthly "living expenses". You should break that down into exactly what is consuming the 4K e.g. groceries, alcohol, eating out, clothes/fashion, petrol etc. I would be looking to reduce that to E2K outgoing and save the other 2K, or better yet, pay off more of 3.1% mortgage with it.That leaves €4,000 which we spend on living expenses.
Of the €20,000 extra in bonus/other income my husband's view is "invest 1/3, pay down debt with 1/3, and fritter away 1/3" (his Dad told him this is sensible and what he did over the years!). I think his idea now that things have stabilised is to put 1/3 of this extra money into an investment account.
Salaries €60,000 (me) and €120,000 (husband).
IMO that [€4,000] is a crazy amount for monthly "living expenses"
With a gross income of €180k, it is not crazy to spend €4,000 a month.
Is it sensible to have a holiday home while you still have a €700k mortgage on your PDH?
We have a holiday home worth €175,000 and owe €118,000 on it. The repayments are around €480 a month. It also generates €6,000 of rental income a year which we use to cover some of the costs. The mortgage is a 0.5% tracker but the rate is less than 0.5%. There are around 23 years left on it.
I think the public sector pension won't kick in at 60 for people your age, just have a feeling I read somewhere. Another thing not specifically mentioned is the future of your children, both financially and in an educational sense. You guys are so far very lucky in life but god forbid anything should happen my 2 points will come into focus. Just a thought.
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