Advice on endowments

dunstonh

Eds a she...

You need to consider the cost of replacement life assurance in the figures. Without it, the calculations are flawed.

EdInvestor

Sassafrass_Hoyden wrote: »

We are already paying a third more into our mortgage every month.We have an opportunity to buy a property overseas, we have been watching the property prices and it seems a good time to invest. We have been doing our research on the property prices and the area for a few years now. If we cash these in then we wouldn't have to borrow any money. In light of your assumptions would you suggest borrowing against these or cashing them in to pay for the property? Or is there another alternative I haven't thought of? We haven't committed ourselves to anything as yet. This would be a holiday home for our family, with the possibility to rent it out should we need to.

Really difficult to offer an opinion on this one. I'd have thought that the consensus view is that prices in many overseas property markets (as here) are on the decline, so that it might be better to wait.

I'm also wondering, since you have only just sorted your credit cards, whether you have got an adequate grip on the mortgage so that you can afford to redeploy all the endowments to another property purchase straight away. To my mind this is a risky move.

I'd suggest you would be better to stick with the status quo for a while and wait for the current financial crisis to blow over, reviewing the situation when you are sure your employment situation is secure and your mortgage and spending are well under control. You have little to lose IMHO at present by doing nothing.

Sassafrass_Hoyden

dunstonh
As I said earlier I already have other life insurance, which are more than sufficient for our needs.

Ed

Thank you for taking the time to reply, we have other endowments and it's now over eighteen months since we cleared our credit cards although I must admit they weren't really a burden we always managed to clear them before holidays, christmas etc., and we have always paid more to our mortgage than required. We also have savings - six months of our joint salaries - my question related to these three endowments not our whole financial situation sorry if I've misled anyone.

Is anyone's job safe in this current climate, but pessimism is the food of the recession.