Late 30's, relocating, inheritance, what to do?

Swordsafford

Registered User
Messages
15
Age:
37
Spouse’s/Partner's age:
39

Annual gross income from employment or profession:
E49,500 (3250pm net)
Annual gross income spouse:
E0 medically unfit due to car accident

Type of employment:
Private sector

Expenditure pattern:
One saver one spender.

Rough estimate of value of home
E220,000
Mortgage on home
114,000 outstanding
Mortgage provider:
UB
Type of mortgage: Tracker, interest only, fixed rate
2yr Fixed, year and a half left.
Interest rate
2.3% monthly payment 465

Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Yes

Savings / Investments
10,000 total savings, 500 per month.

Do you have a pension scheme?
5% (200 per month) matched by employer. Currently worth 15,000

Do you own any investment or other property?
No.

Ages of children:
19 living at home and studying in Dublin. Don't ask for any rent/bills.

Life insurance:
No

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

Relocating to Galway for work (promotion), wife will not sell or rent property in Dublin as it's home and son in college in Dublin. Rent for this would be circa 1500 per month.

Will receive 80,000 inheritance in coming weeks, wife likely to receive insurance claim of similar amount before end of year.

Unable to get mortgage to purchase property in Galway so looking at renting a room. 300 to 400per month. Plan at the moment is to eventually buy two bed and rent other room. Location we plan to buy would rent for 500 per month and half household bills.

Looking for advice on what to do with 80,000 inheritance and anything else that stands out. I feel my pension is far too small. Is it worth paying down mortgage at 2.3%?

Wifes claim will go towards rehabilitation. She has no pension and no employment prospects in short term (3 to 5 years)
 
Last edited:
Is a small mortgage not feasible for a Galway purchase? Your total borrowings are already within the 3.5x Central Bank limits.

€60k borrowing + €80k inheritance might get you a very basic one-bed in Galway.

How much will your income rise to?


Otherwise I would prioritise pension contributions to take advantage of tax relief. The return (long term) is likely to be better than the 2.3% you would get by paying down mortgage early.
 
Is your wife moving to Galway with you? Rent the rooms in your Dublin house with your 19 year old in situ?
 
wife will not sell or rent property in Dublin as it's home and son in college in Dublin.

You are on €50k a year, and you want to maintain 2 homes?

That is madness. Would you be better off passing up on the promotion.

She will probably want to visit her son in Dublin twice a week.

Brendan
 
Yes, pay off the mortgage. It might or might not be the right thing to do financially, but it sounds as if your wife will go through it very quickly.

Put it out of her reach by paying down your mortgage.

Brendan
 
Is a small mortgage not feasible for a Galway purchase? Your total borrowings are already within the 3.5x Central Bank limits.

€60k borrowing + €80k inheritance might get you a very basic one-bed in Galway.

How much will your income rise to?


Otherwise I would prioritise pension contributions to take advantage of tax relief. The return (long term) is likely to be better than the 2.3% you would get by paying down mortgage early.

A small mortgage of 50,000 is what I was looking at but doesn't seem to be a runner as my wife is a dependent and it would have to be classified as an investment mortgage being a second property.
 
You are on €50k a year, and you want to maintain 2 homes?

That is madness. Would you be better off passing up on the promotion.

She will probably want to visit her son in Dublin twice a week.

Brendan

I realise we would be stretched for a period of time. My thinking is more medium, long term. It's a step I need to take to in my career that I've turned down before due to wife's situation. It's also a job I really want and enjoy.

I've put the numbers down on paper and it is feasible but obviously we are in a tight situation if something goes wrong.

Ultimately the plan would be to rent out the property in Dublin but that is most likely 3 years away.

She can't drive so will be reliant on me so no twice weekly visits. Most likely she will spend time between the two.
 
Is your wife moving to Galway with you? Rent the rooms in your Dublin house with your 19 year old in situ?

That would be the ideal situation but wife wants somewhere in Dublin as well. Young family nearby, her son went to college in Dublin because we were there and now she feels like she would be abandoning him. Maybe with time she will come around to this idea but not initially.
 
Buy a one bedroom in Galway. Leave the son on the Dublin house and repurpose it for student rental. Rent the other rooms out. Your wife will have to deal with that for a few years. You should be able to make a little on student rental.
 
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