Age: 42
Spouse’s/Partner's age: NA
Annual gross income from employment or profession: €96k
Annual gross income of spouse: NA
Monthly take-home pay: €4850
Other Income: €193.15 per week widows pension. Will be taxed at top rate.
Type of employment: e.g. Public Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving €1500pm.
Rough estimate of value of home: €260,000
Amount outstanding on your mortgage: €120,000
What interest rate are you paying? Tracker 0.95%
Other borrowings – car loans/personal loans etc
Car PCP €420pm. I do a fair bit of work mileage so it covers my driving expenses.
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:
€120k in Savings Account
Do you have a pension scheme? Yes, Defined Benefit. 16 years service but as I was a late starter in the company it is unlikely that I will have a full 40 years service. Probably more like 32-35 years.
Do you own any investment or other property?
Property 1:
Bought 2006 for €319k
Value €230k
Rental income: €915pm in a rent control area.
Balance: €208k Tracker 1%. Paying off almost €10k per year.
Equity release to buy this property of €60k Variable Rate of 5.5%.
Repayments are €1450pm combined
Property 2:
Value: €190k
Balance: No mortgage
Rental Income: €750pm Long standing tenants.
Ages of children: None
Life insurance: Basic decreasing term Life Insurance on my two mortgages.
What specific question do you have or what issues are of concern to you?
I was widowed last year following my wifes long illness. I never seemed to have much spare cash to save as I had put all my savings into a big house renovation of our PR, then got engaged, married, etc. My wifes employer had a very good death in service benefit so I was left financially secure.
My late wifes property was left to me and has been transferred into my name. It is valued at €190k and I have long term tenants paying €750pm. They are there 7 years and I never have any hassle with them. They keep the place very well. With the crazy taxation of rental property I am thinking of selling this in the next few years. I estimate that I will make €300pm after tax and expenses. What should I consider doing with the €190k if I sell it?
The equity release on my investment property is 5.5% and the remaining balance is €60k. It costs me €420pm so I am going to pay this off with my savings. This will reduce monthly outgoings and bring the property back into slight positive equity. I am trying to decide whether to keep this property for a few years as it is on a tracker and I am wiping almost €10k per year off the mortgage, or sell it and get rid of the extra hassle and expense. I presume that paying off the €60k equity release is a good use of my savings.
Savings plan – I am going to set up a regular savings plan to put approx. €2000 away each month. What is the best product to use for this? Should I use State Savings or something else? I am also looking at AVC’s to top up my pension. I have received some advice on this and I because I have some extra work allowances, this may be advantageous to me. I have been contacted by the investment wing of my bank (BOI) to see if I want to invest in their products but they seem slow to provide details of fees.
My medium term plan (3-5 years) is to buy a site and build a new energy efficient home and end up mortgage free. I feel this would be a good use of my money and it would provide for my future. I would sell both rental properties and my PR. If I sell them in the right order I will not incur any capital gains tax as I will likely end up with a capital loss on Property 1.
I realise I may be answering my own questions but would be interested to hear the views of some of the very experienced posters here.
Spouse’s/Partner's age: NA
Annual gross income from employment or profession: €96k
Annual gross income of spouse: NA
Monthly take-home pay: €4850
Other Income: €193.15 per week widows pension. Will be taxed at top rate.
Type of employment: e.g. Public Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving €1500pm.
Rough estimate of value of home: €260,000
Amount outstanding on your mortgage: €120,000
What interest rate are you paying? Tracker 0.95%
Other borrowings – car loans/personal loans etc
Car PCP €420pm. I do a fair bit of work mileage so it covers my driving expenses.
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:
€120k in Savings Account
Do you have a pension scheme? Yes, Defined Benefit. 16 years service but as I was a late starter in the company it is unlikely that I will have a full 40 years service. Probably more like 32-35 years.
Do you own any investment or other property?
Property 1:
Bought 2006 for €319k
Value €230k
Rental income: €915pm in a rent control area.
Balance: €208k Tracker 1%. Paying off almost €10k per year.
Equity release to buy this property of €60k Variable Rate of 5.5%.
Repayments are €1450pm combined
Property 2:
Value: €190k
Balance: No mortgage
Rental Income: €750pm Long standing tenants.
Ages of children: None
Life insurance: Basic decreasing term Life Insurance on my two mortgages.
What specific question do you have or what issues are of concern to you?
I was widowed last year following my wifes long illness. I never seemed to have much spare cash to save as I had put all my savings into a big house renovation of our PR, then got engaged, married, etc. My wifes employer had a very good death in service benefit so I was left financially secure.
My late wifes property was left to me and has been transferred into my name. It is valued at €190k and I have long term tenants paying €750pm. They are there 7 years and I never have any hassle with them. They keep the place very well. With the crazy taxation of rental property I am thinking of selling this in the next few years. I estimate that I will make €300pm after tax and expenses. What should I consider doing with the €190k if I sell it?
The equity release on my investment property is 5.5% and the remaining balance is €60k. It costs me €420pm so I am going to pay this off with my savings. This will reduce monthly outgoings and bring the property back into slight positive equity. I am trying to decide whether to keep this property for a few years as it is on a tracker and I am wiping almost €10k per year off the mortgage, or sell it and get rid of the extra hassle and expense. I presume that paying off the €60k equity release is a good use of my savings.
Savings plan – I am going to set up a regular savings plan to put approx. €2000 away each month. What is the best product to use for this? Should I use State Savings or something else? I am also looking at AVC’s to top up my pension. I have received some advice on this and I because I have some extra work allowances, this may be advantageous to me. I have been contacted by the investment wing of my bank (BOI) to see if I want to invest in their products but they seem slow to provide details of fees.
My medium term plan (3-5 years) is to buy a site and build a new energy efficient home and end up mortgage free. I feel this would be a good use of my money and it would provide for my future. I would sell both rental properties and my PR. If I sell them in the right order I will not incur any capital gains tax as I will likely end up with a capital loss on Property 1.
I realise I may be answering my own questions but would be interested to hear the views of some of the very experienced posters here.