Age: 46
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 60k
Annual gross income of spouse: 70k
Monthly take-home pay : 6k approx
Type of employment: employed, public service, both
In general are you:
Saving approx 7k per annum
Home:
Rough estimate of value of home: 650K
Amount outstanding on your mortgage: 120K, 6 years remaining
What interest rate are you paying? ECB plus .75 % tracker
Other borrowings – none
Do you pay off your full credit card balance each month? Yes
Savings and investments: around euro 71k cash on deposit in bank, 49k shares (7 different shares, some have done well, some not, so made about 15k on 34k investment)
Do you have a pension scheme? Yes, both public:
Spouse will have most of years service so 35k / annum plus 110k lump sum
I will have very low service so may have around 12k / annum plus 30k lump sum
Do you own any investment or other property? No
Ages of children: 12, 10, 8 (childminding fees are low, 150/month)
Life insurance: yes
Question: We have about 120k. I'm considering 4 things:
a) Our mortgage is about to be sold from Danske to Pepper. Should we make a settlement offer to Danske, since we're a performing loan, how low would they be selling our loan for, would they consider a 50% offer?
b) Buy an investment property: We want our kids to go to a secondary school but we need to live in catchment area to get them in, we like where we live (very near the school we want but over the wall from catchment). We could buy an apartment in catchment and use that address to get them in. The yield isn't great there as lovely place to live but bit far out from city for rental value. Hence a 2 bed apt would be 350k to buy with 1700 / month rent, this would cost us about 5k a year in income tax on the rent. We could possibly downsize to this apt in years to come. In theory, we could rent it out for the next 20 years and then move in ourselves and sell our 4 bed and buy something small abroad as well.
Also, we are in a good position now in that we are both public servants, have 20 years left to get a mortgage (and pay off), I worry that our kids won't be able to get a mortgage so we should get one for them as such (ie. pay off a second property now and then be able to give them a good start later.
c) Private pension fund (by setting up private pension or AVC (I'm not a fan of paying big pension charges annually though). I'm not sure if 45k pension for a couple is enough, I know we spend a lot more than that now and I'd like to afford holidays etc. so do we need a rental income for pension too.
d) Property Pension: Try and build up a private pension fund over next 10 years, putting max in every year, to then buy a property with a pension mortgage and have tax free rental income (only problem is house price inflation while we build up pension fund, we may never have enough)
e) Do nothing, buy more shares as cash builds and keep 50% cash for a rainy day.
We should have enough money to put kids through college from our income, as in, mortgage will be paid by then so 1600 current mortgage payment should cover registration fees etc. (they can live at home & attend college)
I'd really appreciate some advice,
Thanks
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 60k
Annual gross income of spouse: 70k
Monthly take-home pay : 6k approx
Type of employment: employed, public service, both
In general are you:
Saving approx 7k per annum
Home:
Rough estimate of value of home: 650K
Amount outstanding on your mortgage: 120K, 6 years remaining
What interest rate are you paying? ECB plus .75 % tracker
Other borrowings – none
Do you pay off your full credit card balance each month? Yes
Savings and investments: around euro 71k cash on deposit in bank, 49k shares (7 different shares, some have done well, some not, so made about 15k on 34k investment)
Do you have a pension scheme? Yes, both public:
Spouse will have most of years service so 35k / annum plus 110k lump sum
I will have very low service so may have around 12k / annum plus 30k lump sum
Do you own any investment or other property? No
Ages of children: 12, 10, 8 (childminding fees are low, 150/month)
Life insurance: yes
Question: We have about 120k. I'm considering 4 things:
a) Our mortgage is about to be sold from Danske to Pepper. Should we make a settlement offer to Danske, since we're a performing loan, how low would they be selling our loan for, would they consider a 50% offer?
b) Buy an investment property: We want our kids to go to a secondary school but we need to live in catchment area to get them in, we like where we live (very near the school we want but over the wall from catchment). We could buy an apartment in catchment and use that address to get them in. The yield isn't great there as lovely place to live but bit far out from city for rental value. Hence a 2 bed apt would be 350k to buy with 1700 / month rent, this would cost us about 5k a year in income tax on the rent. We could possibly downsize to this apt in years to come. In theory, we could rent it out for the next 20 years and then move in ourselves and sell our 4 bed and buy something small abroad as well.
Also, we are in a good position now in that we are both public servants, have 20 years left to get a mortgage (and pay off), I worry that our kids won't be able to get a mortgage so we should get one for them as such (ie. pay off a second property now and then be able to give them a good start later.
c) Private pension fund (by setting up private pension or AVC (I'm not a fan of paying big pension charges annually though). I'm not sure if 45k pension for a couple is enough, I know we spend a lot more than that now and I'd like to afford holidays etc. so do we need a rental income for pension too.
d) Property Pension: Try and build up a private pension fund over next 10 years, putting max in every year, to then buy a property with a pension mortgage and have tax free rental income (only problem is house price inflation while we build up pension fund, we may never have enough)
e) Do nothing, buy more shares as cash builds and keep 50% cash for a rainy day.
We should have enough money to put kids through college from our income, as in, mortgage will be paid by then so 1600 current mortgage payment should cover registration fees etc. (they can live at home & attend college)
I'd really appreciate some advice,
Thanks
