34, future planning advice?

Discussion in 'Money makeover' started by mmurph85, 3 Jan 2019.

  1. mmurph85

    mmurph85 New Member

    • Age: 34
    • Annual gross income from employment or profession: €20,000 (Teaching)
    • Monthly take-home pay €1,200-1,500.
    • Type of employment: Contract, private, foreign.
    • In general are you: (a) spending more than you earn.
      • Currently yes, but usually a good saver.
    • Rough estimate of value of home €300k
    • Amount outstanding on your mortgage: €0
    • Other borrowings – car loans/personal loans etc
      • Zero other borrowings currently.
    • Do you pay off your full credit card balance each month? Yes.
    • Savings and investments: €30,000 sitting in various deposit accounts.
    • Do you have a pension scheme? No.
    • Do you own any investment or other property? No.
    • Life insurance: None.

    What specific question do you have or what issues are of concern to you?

    I am a single, 34 year old with no children. I currently live abroad making not much money. I have a house in Dublin currently sitting empty. I do not live in Ireland and don't plan to in the near future. I have my savings spread across Irish and foreign bank accounts. I am looking for advice mainly on future planning. Should I sell my house and buy an investment property in Ireland? Should I sell and buy in my country? (Lots of red tape) Should I sell now or later?
  2. Brendan Burgess

    Brendan Burgess Founder

    Where do you intend to live in the longer term?

    If it's Ireland, then you probably should hold onto the house as it's a hedge against your accommodation costs.

    Any increase in the value of your home is free of CGT in Ireland. I think that this still applies if you are working abroad.

    When you come back, if you need social welfare, then your house will be ignored in the means test.

    Can you not rent out your house?

    If you intend to return to Ireland, you probably should not buy in a foreign country and a foreign currency.

    Having said that, if your rent is very high where you are, then buying a home makes sense if you are going to be there for a few years.

    How much would it cost to buy a house where you are?

  3. cremeegg

    cremeegg Frequent Poster

    Why might you do that.

    There would be two sets of transaction costs.
  4. gravitygirl

    gravitygirl Frequent Poster

    Agreed - why can't your current house in Ireland be an investment property?
  5. mmurph85

    mmurph85 New Member

    Hi everyone, thank you for your replies.

    I intend to settle in Poland after finishing up here in the east. I see the value of keeping it but I was thinking of selling what I have now to something that would better suit me, e.g smaller and cheaper to run, then rent that house out and put the money gained into savings accounts. The house is currently being house sitted by a good friend to check it up every week. If I was to have a decent 2 bed apartment I'd have a home I could come back to and make €14,000 a year with rentaroom scheme while I'm here and more if not.

    Cost of housing in Poland is much, much cheaper so Ideally I'd like a 1/2 bed apartment in Dublin that easily rented and then a second home, my PPR in Poland.

    What are the average cost to buy and sell in Ireland?
  6. moneymakeover

    moneymakeover Frequent Poster

    Why not ask estate agent to give opinion on the rental potential of existing property

    Then when you want to move back consider selling it and buying your new place.
  7. Brendan Burgess

    Brendan Burgess Founder

    Are you sure about that? I doubt if you can be resident abroad and avail of the rent a room scheme.

    Even if that did apply in Ireland, your current country might tax you on your world wide income.

    If you do not intend to return to Ireland then you should sell your house here but you should not buy another one.

    Apart from buying a place to live yourself, you should probably not invest in property. Buy a portfolio of shares which would be less hassle, give a better return, and be more liquid. Check the tax position of where you live and invest accordingly.

  8. mmurph85

    mmurph85 New Member

    Thanks for the reply Brendan. I meant that I would rent the apartment fully out when I was abroad and then the option would be there for me use the scheme if I was to return back.

    You don't advise buying at all? I would not be taxed on any Irish income.

    I feel like I should sell up and invest in some shares but then I own zero property.