Another Start A Pension Question – But At 57

Why is it madness to put money in an investment vehicle where you get tax back from your contributions, and where the investment growth is not taxed either? The disadvantage with the age is only that the timeframe for compounding is small.
 
Well, with a little more time to look at AM now the last few days are sorted, as its been mayhem here in work, I am amazed that any of our fine intelects here here would suggest this guy start a pension at his age. Pure Madness

I notice Bronte has softened the cough of many here. Her Plan is, in my opinion brilliant. Albeit on a somewhat similar platform to mine only, so much better put. But thats what makes Bronte Queen of the property, a very well informed poster.

Again, as said in another thread, Ideas although directed to the op, are read by others who may also benefit.

AAM doesn't like property. They like shares and bonds and stuff. There is also an Irish bias against landlords.

I know little of shares and bonds. But I do know property, albeit in a small way. And I can tell you this, I'm very glad to say this is the first year I didn't have to use our own money to pay the rental tax. And next year we will finally start getting the money from the rents. I was over the moon this year to take out 1K and now my OH is in early retirement it is heartening to know we will have a source of income that we can't get elsewhere. I wouldn't like to live on the state pension solely.
 
Yes, I understand the rent-a-room scheme very well Bronte.

The bottom line is that a self-contained unit, such as a converted garage or a basement flat, does not qualify for the relief.

A lodger is someone who rents accommodation in another person's house. Someone who rents accommodation in a self-contained unit is a tenant.

You're wrong. As long as it is connected, that's rent a room. But if you convert your separated chalet, it is not.
 
Seems pensions is not the way to go in this case, some of the other suggestions have been thought about and are being considered.

Even if a loan could be got, an investment property is not a burden or commitment he would take on heading into retirement, I’m sure some do it successfully, but it’s not for him.

Granny flat is an option, the house could easily be separated into upstairs and downstairs apartments, there would be some initial cost, but no mortgage. 2 bed apartments in the area are getting €1.7K monthly, the upstairs of a house might not get the same but I’m sure something near it. Not without it’s problems though, many scary stories on here that would make one reluctant to be a landlord. Some of his neighbors make handy money taking students during term time, Sunday evening to Friday morning from nearby UCD, this might be the better option.

Downsizing to an apartment is an option, has many benefits and would probably release €300K, they like their house though, but this option can’t be ruled out if ever needed.

In this person’s circumstances, it seems there is a lot of merit in simply banking the cash in state savings or whatever is the best available and spending €5K annually, given the average Irish life expectancy, realistically, it’s unlikely it will ever be all spent.

Thanks for the replies.
I missed this post.

You should bear in mind that the horror stories, while they are real, they are not the true story. That is because we don't have posters telling the reality. That is because this website is about problems. So you're going to buy hear bad news.

It is a no brainier to me to convert, live in one half and spend retirement in luxury. You would have to pay tax on the 20k income of 50%. So you might as well go for just the 12k rent, and if you're not a landlord, ie you are rent a room, then you have stronger property rights.
 
AAM doesn't like property. They like shares and bonds and stuff. There is also an Irish bias against landlords.

I know little of shares and bonds. But I do know property, albeit in a small way. And I can tell you this, I'm very glad to say this is the first year I didn't have to use our own money to pay the rental tax. And next year we will finally start getting the money from the rents. I was over the moon this year to take out 1K and now my OH is in early retirement it is heartening to know we will have a source of income that we can't get elsewhere. I wouldn't like to live on the state pension solely.

At least property is a tangible asset unlike stocks and shares that could well flop over night. Good on you Bronte, here is to a prosperous new year ;)
 
I'm with you moneybox. I like bricks and mortar. I'm thinking of doing renovations on the rentals with the extra money. I'd like to put in an extra toilet in one house as the family there now are about to have a fourth child. It's my old home. It has a granny flat (garage I converted) but needs mega work. I had the builder nephew in it last year, rent free as I consider it in an unliveable state, but he and the girlfriend were desperate, he fixed it up, but the damp is too bad now so they moved out, and now I found out the tenant in the house has his brother living with him too, and he wants it. But I'm not letting him in there because of the state of it.

If the government incentivised me I'd knock the garage and build a lovely two bed unit. (I has planning, but wasn't going to tell the corporation it would be a separate unit) And I'd also build a chalet in the large garden. But the cost is high, it won't increase house value so there it rots. so I could easily house four people. Simon Coveney are you listening.
 
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It's my old home. It has a granny flat

Must hold very previous memories for you, nice to keep in the family. Hopefully you can attack that granny flat soon and resolve the damp issue.

Forget about Coventry, he is about as useful as a rats tail
 
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