Property Investment vs Pension



I'm in a bit of a financial muddle.
I've just given up work to become a full-time Mom so my husband is now sole-earner - things will be tight but we reckon our quality of life will improve tremendously. I will however, no longer be contributing into a pension fund.
We purchased a rental property 5 years ago - the current rent is approx. €100 short of covering the monthly mortgage repayments. This wasn't a problem in the past as property prices increased.
We are now in a dilemma as to whether we should sell the property and invest our profit (approx. €100k minus CGT) into AVC's or a pension fund or should we hold onto the property - we're assuming it's value is not going to increase anymore. And if we should invest it what would is the best option?
We have an outstanding mortgage on our home of €220k and it is valued at €650k - we're on a LTV tracker mortgage with NIB. No other debts outstanding.
Thanks for any advice.

Update with required details :

Age: 34
Spouse’s/Partner's age: 35

Annual gross income from employment or profession: 80k (before giving up work - now full-time Mom)
Annual gross income spouse: 45k

Type of employment: FMCG

Expenditure pattern: In general are you spending more than you earn or are you saving? No, manage to save between us approx. 200 euros per month - used to be approx. 600 when I was working

Rough estimate of value of home : 650k
Mortgage on home : 220K
Mortgage provider: NIB
Type of mortgage: Tracker
Interest rate

Other borrowings – car loans/personal loans etc : None

Do you pay off your full credit card balance each month? : Yes
If not, what is the balance on your credit card?

Savings and investments: approx. 15k in deposit, 5k in shares and 15k in long-term nvestment maturing in 10 years

Do you have a pension scheme? Yes and 200 per month in AVC

Do you own any investment or other property? Yes, mortgage over 25years, variable int. rate - if we go to interest only the rent will cover the repayments with approx. 250 euros leftover.

Ages of children: 3 and 1

Life insurance: Yes
Last edited by a moderator:


Registered User
Personally i would think you've missed the boat on offloading property for the time being. I wouldn't despair though, I wouldn't say that the property is never going to increase in value again. If you can afford it I'd wait for the next wave (whenever that will be)


Registered User
We purchased a rental property 5 years ago - the current rent is approx. €100 short of covering the monthly mortgage repayments.
What sort of mortgage have you got on the investment property? How long is the term, what interest rate are you paying, is it a fixed/variable/interest only rate?

You could always consider going interest-only/increasing the term/getting a better rate to ensure that you don't have to cover the shortfall in rent.

I would strongly suggest that if you can make the rent cover the mortgage, then you should absolutely sell up. You can take the profit, invest it and get a greater return on it.