financial review of current situation

samhig

Registered User
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3
Hi, I am looking for some advise, thanks for your help.


Age: 47
Spouse’s/Partner's age: 45

Annual gross income from employment or profession: €37,100 with Over time €55-60k
Annual gross income of spouse: €50,620

Monthly take-home pay; Me; €3033 roughly

Spouse: €2830

Type of employment: Public Sector

Spouse: public sector

In general are you:
(a) spending more than you earn, or
(b) saving? Slowly saving

Rough estimate of value of home; €380-400k approx
Amount outstanding on your mortgage: €120k (matures 2040)
What interest rate are you paying? 3% variable KBC- started this year to make extra payments to reduce term.

Other borrowings – car loans/personal loans etc: Car Loan €3000


Do you pay off your full credit card balance each month? yes
If not, what is the balance on your credit card? N/A

Savings and investments:

Savings; €25k plus additional account with €11k. to cover rental house expenses/tax

Investments: €86,000 Investment

Do you have a pension scheme? Superann with employer, started AVCs this year of €35 per week

Spouse: Pension 170 Single Public Service Scheme Superann deduction €198 per mth & paying AVCs €130 per month

Do you own any investment or other property? Yes. Market value approx €180k; Rental Income €12600 per yr; Mortgage €125k Interest rate 3.7%; matures May 2037.

Ages of children: 20 year old, finished college in May,


Life insurance: critical illness linked to mortgage.


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

1: Is it worth keeping rental property?

2: should I use investment funds to reduce mortgage term of main home? Plan is to reduce term of main home but not sure if I should use investments to do so or make lump payment regularly?

3: Not sure if I am utilising full benefit of AVCs?
 

RedOnion

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5,687
What interest rate are you paying? 3% variable KBC
Why are you paying 3%? They've fixed rates as low as 2.3% available for you.

The car loan should go first from the savings.
Pay off the 3k loan straightaway.

Assuming it's not interest free.

2: should I use investment funds to reduce mortgage term of main home? Plan is to reduce term of main home but not sure if I should use investments to do so or make lump payment regularly?
Have a read through the following thread, and links. You haven't said what you hope the return will be on the investment, so how could anyone comment?


1: Is it worth keeping rental property?
You've provided gross rent and interest rate. How could anyone advise without a lot more information?
What are the other costs in keeping it?
Is the rent dependable?
How much did you buy it for?
Did you previously live in the property?
Is there a taxable CGT gain / allowable loss if you sell? Do you have any other CGT gains / losses to offset?
 
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