C
casie
Guest
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
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
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