Personal details
Age: 38
Spouse’s/Partner's age: 38
Number and age of children: 2 (7&8)
Income and expenditure
Annual gross income from employment or profession: €62,000
Annual gross income of spouse: €50,000
Monthly take-home pay €6,400
Type of employment: I am working in private industry while Mrs. is in the public service
In general are you:
(a) spending more than you earn, or
(b) saving?
(a) - have always been savers although we have just recently relocated from living overseas so we are still trying to figure out our exact monthly savings figure as we juggle costs associated with relocating and figuring out the cost of living in Ireland.
Summary of Assets and Liabilities
Family home worth €380k with a €0k mortgage
Cash of €160k
Defined Contribution pension fund: €0k in Ireland - see below other information
Company shares : €0k
Buy to Let Property 1 worth €230k with mortgage of €0k
Buy to Let Property 2 worth €125k with mortgage of €0k
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? - Yes
If not, what is the balance on your credit card?
Car loan of €14k
Buy to let properties
Property 1
Value: €230k
Rental income per year: €12k
Rough annual expenses other than mortgage interest : €2.5k
Property 2
Value: €125k
Rental income per year: €10.2k
Rough annual expenses other than mortgage interest : €2.8k
Other savings and investments:
Do you have a pension scheme? Currently have a pension of €227k between us in the previous country we worked in (this is at todays currency conversion rate so may fluctuate). Note this money cannot be touched until we turn 65.
Do you own any investment or other property? - Minor share holdings. Purchase price €6k now worth €3k
Other information which might be relevant
Life insurance: Nil as yet but looking into it currently
Once I have been with my new employer for 6 months I can avail of the pension arrangement the company has which is 5% employee contribution with a 7% employer top-up. what I will do however is maximise the contributions to maximise the tax incentives to do so.
What specific question do you have or what issues are of concern to you?
I have a couple of queries that I am hoping to get some advise on as follows:
1. Now that we are residing in Ireland we are very deflated about the tax payable on the rental profits (48% in lieu of 20%). I see this as we are taking a lot of risk here for very little return considering the amount of cash tied up. Should we sell these properties?
2. We plan on doing some renovations to our PPR in the next 12-24month - budget around 75k - should we look at mortgaging one of the investment properties to pay for this to avail of the tax relief on the repayments - or is this even possible if we are spending the mortgaged cash on our PPR?
3. We feel that we are holding too much cash given the non-existent returns for deposits in the bank and are looking for some advise as to what is the best thing to do with the cash?
Any help / advice / guidance gladly appreciated.
Thanks for taking the time to read.
Age: 38
Spouse’s/Partner's age: 38
Number and age of children: 2 (7&8)
Income and expenditure
Annual gross income from employment or profession: €62,000
Annual gross income of spouse: €50,000
Monthly take-home pay €6,400
Type of employment: I am working in private industry while Mrs. is in the public service
In general are you:
(a) spending more than you earn, or
(b) saving?
(a) - have always been savers although we have just recently relocated from living overseas so we are still trying to figure out our exact monthly savings figure as we juggle costs associated with relocating and figuring out the cost of living in Ireland.
Summary of Assets and Liabilities
Family home worth €380k with a €0k mortgage
Cash of €160k
Defined Contribution pension fund: €0k in Ireland - see below other information
Company shares : €0k
Buy to Let Property 1 worth €230k with mortgage of €0k
Buy to Let Property 2 worth €125k with mortgage of €0k
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? - Yes
If not, what is the balance on your credit card?
Car loan of €14k
Buy to let properties
Property 1
Value: €230k
Rental income per year: €12k
Rough annual expenses other than mortgage interest : €2.5k
Property 2
Value: €125k
Rental income per year: €10.2k
Rough annual expenses other than mortgage interest : €2.8k
Other savings and investments:
Do you have a pension scheme? Currently have a pension of €227k between us in the previous country we worked in (this is at todays currency conversion rate so may fluctuate). Note this money cannot be touched until we turn 65.
Do you own any investment or other property? - Minor share holdings. Purchase price €6k now worth €3k
Other information which might be relevant
Life insurance: Nil as yet but looking into it currently
Once I have been with my new employer for 6 months I can avail of the pension arrangement the company has which is 5% employee contribution with a 7% employer top-up. what I will do however is maximise the contributions to maximise the tax incentives to do so.
What specific question do you have or what issues are of concern to you?
I have a couple of queries that I am hoping to get some advise on as follows:
1. Now that we are residing in Ireland we are very deflated about the tax payable on the rental profits (48% in lieu of 20%). I see this as we are taking a lot of risk here for very little return considering the amount of cash tied up. Should we sell these properties?
2. We plan on doing some renovations to our PPR in the next 12-24month - budget around 75k - should we look at mortgaging one of the investment properties to pay for this to avail of the tax relief on the repayments - or is this even possible if we are spending the mortgaged cash on our PPR?
3. We feel that we are holding too much cash given the non-existent returns for deposits in the bank and are looking for some advise as to what is the best thing to do with the cash?
Any help / advice / guidance gladly appreciated.
Thanks for taking the time to read.