pension or property?

P

pollyinthe

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At 50, with interrupted career for childcare and elder care I am now in the position of not having a pension at all. I have about 100,000 invested in a small property. I have received an offer on the property, which has ended up a 'holiday' place, which i am tempted to accept.

My daughter 15, will hopefully go to college, as a single earner i could get a mortgage but it would make living very tight (i.e. half our income).

any rules of thumb when it comes to making 'big' financial decisions.

there is a property in england for the full amount of 100,000, but with a rental income of around 250-300 sterling pcm, would that be a wise move, ie tax etc, or would i be better investing in a pension, or college fund??
 
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Polly

I find your post very difficult to understand and I have had to read it a few times.

Question 1 - Should I sell my holiday home for €100k?

If you are not using this much and it if it is not a good investment, then you should probably sell it. If it's not generating income for you, then it's probably not a good investment.

Question 2 - Should I reinvest the proceeds in a UK property?
I don't think so. If a holiday home in Ireland is not a good investment for you, then I don't think an investment property in the UK is any better. It costs money to sell and buy. So the UK property and sterling would have to rise more than the Irish property and the euro to justify the decision.

Generally, property is not a good investment unless you are borrowing to invest. And I don't think you can afford the risks of borrowing.

Question 3 Should I invest the proceeds in a pension?
Only if you are paying income tax at the top rate. Then you should pay enough into a pension fund to take you out of the top rate.

Question 4
" My daughter 15, will hopefully go to college, as a single earner i could get a mortgage but it would make living very tight (i.e. half our income)."

I don't understand this at all. You will have to rephrase the question. If you are asking should you borrow to invest in property, the answer is no if it will make living very tight.

Other issues
Do you own your own home?
Do you have a mortgage on your home?
 
Apologies, I was trying to keep my post brief.

No i don't own any other property, i rent (low rent) where i am living to be near my elderly parents.

My wages are about 48,000 before tax, which is proportionately lower and higher rate tax.

As a foreign national I am not clear on the system here for college fees, how much I will need to complete my daughter's education.

The house i bought was the only one i could afford which i had intended to live in however my parents needs have taken priority, and it is by default a 'holiday home'.

Thanks for your advise re: pensions, you would seem to be suggesting that it is a done deal unless you are a high earner.

The property in England would be my main home in times to come, and would yield a return, which my current property does not......ie it is not in condition to let.

We do not have any other debt, credit cards or loans.

kind regards,

polly
 
look at the money you could make on deposit, if its more than the getting a property and then renting it out then why buy the house?
 
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