Age: 45
Spouse’s/Partner's age: n/a
Annual gross income from employment or profession:
Net income based on 2016 tax return is ~€40,000
Annual gross income of spouse: n/a
Monthly take-home pay: €3300
Type of employment: e.g. Civil Servant, self-employed:
Early retirement due to ill-health
In general are you:
(a) spending more than you earn, or
(b) saving?
Breaking even most months, save occasional months, approx €500
Rough estimate of value of home: €295,000
Amount outstanding on your mortgage: €225k
What interest rate are you paying? 2.25% tracker
Repayments are €1380/month
Other borrowings – car loans/personal loans etc
BTL mortgage of €500,000 @ 1% tracker, interest only
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments:
€25,000 in regular saver account
€100,000 in equities, USD denominated (approx $120,000)
€140,000 in ARF/AMRF
Do you have a pension scheme? Defined benefit semi-state pension of approx €500/month at 60
Do you own any investment or other property? Yes
BTL 1 - Value €175,000, rented @ €1,100. Section 23
BTL 2 - Value €100,000 (retirement home), leased to management company, approx €5000/year
BTL 3 - Value €150,000 (holiday home), in the process of selling
BTL 4 - Half share in €175,000 apartment, bought with ex-partner, rented @ €1248. I keep total rent in lieu of child support
Mortgage of €500,000 is interest only and is cross secured against BTL 1 and 2 above. Repayments are €420/month and these properties are in significant negative equity, 15 years of 25 term remaining.
Ages of children: 16 and 24
Life insurance: Mortgage protection on PPR
What specific question do you have or what issues are of concern to you?
Thanks for reading. I am selling the holiday home for €150,000 net. Originally my plan was to purchase a BTL in Dublin, approx cost €175,000, rental income would be ~€1,400 (ex-partner would contribute up to €25k to purchase if necessary). The extra cash flow would allow me additional savings each month, however I'm worried that I am already too over exposed to the property market. I'm now thinking of either using €150k against the outstanding mortgage on my PPR (2.25% tracker, 15 years of 25 remaining, current balance €225,000) or investing in additional equities. Paying against my PPR mortgage would reduce the remaining term to 5 years and would allow me to save the €1380 elsewhere for repayment against the BTL mortgage when it becomes due. Should I use the lump sum against my PPR mortgage or invest? I am willing to take on some investment risk but I'm also aware that I have significant mortgage debt that needs to be repaid.
My current income is made up of DSP Invalidity Benefit, rental income and rent-a-room to my son. All declared and tax returns are up to date. Sorry for the long post and thanks in advance for any advice/opinions.
Spouse’s/Partner's age: n/a
Annual gross income from employment or profession:
Net income based on 2016 tax return is ~€40,000
Annual gross income of spouse: n/a
Monthly take-home pay: €3300
Type of employment: e.g. Civil Servant, self-employed:
Early retirement due to ill-health
In general are you:
(a) spending more than you earn, or
(b) saving?
Breaking even most months, save occasional months, approx €500
Rough estimate of value of home: €295,000
Amount outstanding on your mortgage: €225k
What interest rate are you paying? 2.25% tracker
Repayments are €1380/month
Other borrowings – car loans/personal loans etc
BTL mortgage of €500,000 @ 1% tracker, interest only
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments:
€25,000 in regular saver account
€100,000 in equities, USD denominated (approx $120,000)
€140,000 in ARF/AMRF
Do you have a pension scheme? Defined benefit semi-state pension of approx €500/month at 60
Do you own any investment or other property? Yes
BTL 1 - Value €175,000, rented @ €1,100. Section 23
BTL 2 - Value €100,000 (retirement home), leased to management company, approx €5000/year
BTL 3 - Value €150,000 (holiday home), in the process of selling
BTL 4 - Half share in €175,000 apartment, bought with ex-partner, rented @ €1248. I keep total rent in lieu of child support
Mortgage of €500,000 is interest only and is cross secured against BTL 1 and 2 above. Repayments are €420/month and these properties are in significant negative equity, 15 years of 25 term remaining.
Ages of children: 16 and 24
Life insurance: Mortgage protection on PPR
What specific question do you have or what issues are of concern to you?
Thanks for reading. I am selling the holiday home for €150,000 net. Originally my plan was to purchase a BTL in Dublin, approx cost €175,000, rental income would be ~€1,400 (ex-partner would contribute up to €25k to purchase if necessary). The extra cash flow would allow me additional savings each month, however I'm worried that I am already too over exposed to the property market. I'm now thinking of either using €150k against the outstanding mortgage on my PPR (2.25% tracker, 15 years of 25 remaining, current balance €225,000) or investing in additional equities. Paying against my PPR mortgage would reduce the remaining term to 5 years and would allow me to save the €1380 elsewhere for repayment against the BTL mortgage when it becomes due. Should I use the lump sum against my PPR mortgage or invest? I am willing to take on some investment risk but I'm also aware that I have significant mortgage debt that needs to be repaid.
My current income is made up of DSP Invalidity Benefit, rental income and rent-a-room to my son. All declared and tax returns are up to date. Sorry for the long post and thanks in advance for any advice/opinions.