Moneymakeover Best options for 120k to invest

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Ballina

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Thank you in advance for some advice please.

Myself and my wife are retired and 66yrs. Living in our own home mortgage free for past 20 years.

She is on good Public Service Pension, I have smaller Public Service Pension plus full COAP and ARF of which 4% PA gives me €3000 after tax.

We have a Zurich Matrix Bond of €100,000 taken out 4 years ago and appears to be doing ok. Also another Zurich Bond of €45,000 which we dip into for holidays or if a big expense happens.

2 adult kids living abroad.

I bought a small house in a local university town 3 years ago and had a few students in it for the college term. I didn`t want long term tenants. House is now worth €200,000 and I think after fees and tax I might have €170,000. I don`t want to rent under these new rules, and students take a lot of supervision. I could just leave the house vacant for another year and let the value increase. If I sell, I would keep €50,000 rainy day money, but I have no idea what to do with the rest that will give a little return rather than lose value. At our age , we are fairly risk adverse, but would like an option where we could access it if one of the kids wanted help.

Can anyone suggest a few options please?
 
I strongly recommend you sell the property and don't wait another year. You don't know where prices are going and indeed a vacant property brings its' own problems including insurance ( which can be difficult to acquire )
It's been mentioned here many times but the problem with property is that left-wing parties (thats basically all Irish political parties!) want to lessen individual's property rights in the bogus claim of pursuing social goals.
This today https://www.rte.ie/news/politics/2026/0618/1578995-ireland-politics/ is yet another example.

If you wish the proceeds to be 'risk free' I would suggest State Prize Bonds which will probably net you .75% and your capital is readily accessible.
Of course this will almost certainly be less than inflation.
 
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Ballina said:
I bought a small house in a local university town 3 years ago and had a few students in it for the college term. I didn`t want long term tenants. House is now worth €200,000 and I think after fees and tax I might have €170,000
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Are you sure about these figures?
Let's assume €3K for conveyancing, estate agent, etc.
That means that your estimated CGT bill is c. €27K.
So that suggests that the assessable gain is c. 3 x €27K = €81K.
(I'm ignoring allowable capital expenses and annual CGT allowance for simplicity).
Did the property actually appreciate by c. €81K or c. 66% since you bought it 3 years ago?
 
Yes, I bought it for a rock bottom price of €120,000, it was greatly reduced because the rear extension was built without planning permission which put buyers off. Local Architect was asking an astronomical fee for dealing with it. I rang the local Council Planning Dept who told me what to do and I got the retention for €81. I spent another €10,000 renovating and insulating as it was in pretty good condition to start with. Auctioneer valued it at €200, 000 last week.
 
I would think your best bet is the best fixed term deposit account you can get. It is risk free, aside from inflation and relatively liquid if your children need money.

Ballina said:
Thank you for your reply. You are right, their stupid rules are backfiring and having the opposite effect to what they are trying to achieve.
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You've little choice really but to sell. I'd imagine students are hard work. 6 years is too long to tie the property up for especially when there is the real risk of the tenancy being converted to a permanent one with limited rent increases. Estate issues are relevant also. You don't want to pass a devalued house with a permanent tenant on to your children.
 
Trade republic give you 3% for new customers with no notice period up to 50k - might be worth while if you want risk free return and to maintain liquidity.
 
Yes, I rang the Auctioneer this morning and told him to go ahead. Thank you all for your advice. I never heard of Trade Republic, I will look them up.
 
Ballina said:
At our age , we are fairly risk adverse
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You have good, guaranteed pension provision. A low probability of any significant future out of the ordinary expenses.

Being in your 60s and having adequate assets and income is an ideal position to take on some risk.

If you cannot afford to take some risk, who can ?
charlie007 said:
If you wish the proceeds to be 'risk free' I would suggest State Prize Bonds which will probably net you .75%
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There is a difference between 'risk free' and guaranteed loss.

Why not give the money to your kids ?
 
Ballina said:
I could just leave the house vacant for another year and let the value increase.
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Property prices can go up as well as down. You’ve had a significant gain. How likely is that to continue…

You’re leaving the landlord business because of the students? What rent were they paying? What would it achieve from non students?
 
Bronte said:
You’re leaving the landlord business because of the students? What rent were they paying? What would it achieve from non students?
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Non-students have minimum 6 year leases, possibly much longer the way things are going. I think that was the OP's issue. Students are too much hard work, but the alternative is a lease with a built-in eviction ban.
 
I also wrote 'Of course this will almost certainly be less than inflation'
I won't be going down the rabbit hole of what risk free means?:)
 
Fortune said:
OP has specifically said they want some return rather than the loss in value offered by prize bonds
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What investment is risk free that will give an actaul return above inflation? Any of the savings accounts offered by banks are risk free but they dont provide any meaningful return that will go above inflation?
 
Colin4444 said:
What investment is risk free that will give an actaul return above inflation?
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None.
Colin4444 said:
Any of the savings accounts offered by banks are risk free but they dont provide any meaningful return that will go above inflation?
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That's the main risk so they're not risk free. There are also other risks but they can usually be mitigated e.g. by keeping below the amount guaranteed by the Deposit Guarantee Scheme or equivalent.
 
ClubMan said:
That's the main risk so they're not risk free. There are also other risks but they can usually be mitigated e.g. by keeping below the amount guaranteed by the Deposit Guarantee Scheme or equivalent.
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I think what is meant by 'risk free' or at least what I think, is that you are guaranteed x amount after x years, you know on day 1 when you open the account how much you will get for however long you leave it in there.. its guaranteed and risk free...

I dont think counting knowledge you have when you open the account as risk, as you already know how much you get and if thats below inflation you have accepted that - so not a risk!
 
Colin4444 said:
I think what is meant by 'risk free' or at least what I think, is that you are guaranteed x amount after x years, you know on day 1 when you open the account how much you will get for however long you leave it in there.. its guaranteed and risk free...
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Erosion of capital value due to net deposit returns lagging inflation is a real risk not just some academic/pedantic issue.
Colin4444 said:
I dont think counting knowledge you have when you open the account as risk ...
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I don't understand what this means.
 
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