Tweet
I'm 25 and my future wife is 27 years old. We live in Auckland.We both work full time, earn about $75k after tax and save around 20-25k of this annually. We aren't really home DIY people and we don't want to deal with tenants, etc as we live quite busy lives so we get the property managed.
9 months ago we bought our first property in Auckland for $532k with a 20% deposit. Our figures are below.
House Price- $532,000
Cash Deposit- $93,000
Interest free loan from parents- $14,000
Loan from bank- $425,000 (average 6.4% interest)
Yearly Rent- $24,180
Mortgage interest- $27,200
Property Management (including inspections, etc)- $2700
Lawn Mowing every 3 weeks- $988
Rates- $1632
Insurance- $1404
Accountant- $350
Bank Fees- $164
Repairs/Maintenance (newly renovated)- $500
Total cash loss- $9,126
We have managed to pay back $9k of the revolving credit, once down to 14k paid off the revolving credit we will transfer this money across to our parents to pay back the 14k. We had the house empty for the first four weeks and some unexpected medical bills which cost a few thousand dollars so we are a bit behind on the $2000 a month we normally save.
In February 2016 we plan to get married and have budgeted and confirmed a booking and we have figured out it will cost around $12k so we will have to save for this also. My future wife also wants to go on a honeymoon which we have factored in will cost around $4000. This will be the first time either of us has gone overseas since we were very young so we are both looking forward to this. We also would look to have children, preferably two when my future wife is 31-33 years old (4 years away).
So what I'm asking here is, where do we go from here. Obviously the next few steps are to pay back our parents, save for the wedding and honeymoon so paying back big chunks of the mortgage won't be happening too much.
Is there anything we should be focusing on? Is looking to buy a second house sometime worth doing? How to you work through going down to one income when children start arriving, etc.
Appreciate the advice. Thanks.
9 months ago we bought our first property in Auckland for $532k with a 20% deposit. Our figures are below.
House Price- $532,000
Cash Deposit- $93,000
Interest free loan from parents- $14,000
Loan from bank- $425,000 (average 6.4% interest)
Yearly Rent- $24,180
Mortgage interest- $27,200
Property Management (including inspections, etc)- $2700
Lawn Mowing every 3 weeks- $988
Rates- $1632
Insurance- $1404
Accountant- $350
Bank Fees- $164
Repairs/Maintenance (newly renovated)- $500
Total cash loss- $9,126
We have managed to pay back $9k of the revolving credit, once down to 14k paid off the revolving credit we will transfer this money across to our parents to pay back the 14k. We had the house empty for the first four weeks and some unexpected medical bills which cost a few thousand dollars so we are a bit behind on the $2000 a month we normally save.
In February 2016 we plan to get married and have budgeted and confirmed a booking and we have figured out it will cost around $12k so we will have to save for this also. My future wife also wants to go on a honeymoon which we have factored in will cost around $4000. This will be the first time either of us has gone overseas since we were very young so we are both looking forward to this. We also would look to have children, preferably two when my future wife is 31-33 years old (4 years away).
So what I'm asking here is, where do we go from here. Obviously the next few steps are to pay back our parents, save for the wedding and honeymoon so paying back big chunks of the mortgage won't be happening too much.
Is there anything we should be focusing on? Is looking to buy a second house sometime worth doing? How to you work through going down to one income when children start arriving, etc.
Appreciate the advice. Thanks.
Comment