tunnellight
Registered User
- Messages
- 28
Age:40
Spouse’s/Partner's age:42
Annual gross income from employment or profession: 80,000
Annual gross income of spouse: 90,000
Monthly take-home pay €3,600 ( take some parental leave )
Type of employment: Employee
In general are you:
(b) saving? ~500 per month
Rough estimate of value of home €650,000
Amount outstanding on your mortgage: €470,000
What interest rate are you paying? 2.3%
Other borrowings – Mortgage on second property , €213,000
Do you pay off your full credit card balance each month? N/A
If not, what is the balance on your credit card? N/A
Savings and investments: €10,000 savings
Do you have a pension scheme? Yes , 5% employer contribution , 10% by me , ~50K in pot
Do you own any investment or other property? Yes , apartment worth ~ 230K
Ages of children: 5 & 7 , childcare 400 per month
Life insurance: Yes 240K in event of death
What specific question do you have or what issues are of concern to you?
I have an apartment , bought in 2007 for 310K . On a tracker mortgage of ECB 2.15%
It is rented at €1K per month , max allowable under RTB rules , but significantly ( 35% or so ) under market rates.
Mortgage repayment is €1,130 , Interest portion at the moment is €435 per month , service charges are €600 pa .
After tax is paid , the negative annual cashflow to me is ~€3,000.
My tenants are good , very little hassle , but obviously things crop up from time to time , calls re washing machines etc -
I am a reluctant landlord , I have been renting out the property for the last ten years or so , as I couldn't sell due to negative equity.
I could sell now , and would probably clear 10/20K ( I am not sure how much of an effect the below market rent , will have on the sales price )
I wonder would I financially be better off to increase my pension contribution by the amount I am putting towards the mortgage on the rental.
The things stopping me are
* If I die , age 66 , my kids get nothing from my pension. If I had the apartment , they would inherit that.
* If I put a little extra towards the rental apartment mortage , I could quite easily have it cleared in 15 years time , allowing me to cut back to part time work , in my mid fifties
The issues I forsee are
* Risk of interest rates rising - though I think I can mitigate this by offsetting agaisnt tax bill
* Potentioal govt legislation on the right of landlord to sell
Any opinions ?
Spouse’s/Partner's age:42
Annual gross income from employment or profession: 80,000
Annual gross income of spouse: 90,000
Monthly take-home pay €3,600 ( take some parental leave )
Type of employment: Employee
In general are you:
(b) saving? ~500 per month
Rough estimate of value of home €650,000
Amount outstanding on your mortgage: €470,000
What interest rate are you paying? 2.3%
Other borrowings – Mortgage on second property , €213,000
Do you pay off your full credit card balance each month? N/A
If not, what is the balance on your credit card? N/A
Savings and investments: €10,000 savings
Do you have a pension scheme? Yes , 5% employer contribution , 10% by me , ~50K in pot
Do you own any investment or other property? Yes , apartment worth ~ 230K
Ages of children: 5 & 7 , childcare 400 per month
Life insurance: Yes 240K in event of death
What specific question do you have or what issues are of concern to you?
I have an apartment , bought in 2007 for 310K . On a tracker mortgage of ECB 2.15%
It is rented at €1K per month , max allowable under RTB rules , but significantly ( 35% or so ) under market rates.
Mortgage repayment is €1,130 , Interest portion at the moment is €435 per month , service charges are €600 pa .
After tax is paid , the negative annual cashflow to me is ~€3,000.
My tenants are good , very little hassle , but obviously things crop up from time to time , calls re washing machines etc -
I am a reluctant landlord , I have been renting out the property for the last ten years or so , as I couldn't sell due to negative equity.
I could sell now , and would probably clear 10/20K ( I am not sure how much of an effect the below market rent , will have on the sales price )
I wonder would I financially be better off to increase my pension contribution by the amount I am putting towards the mortgage on the rental.
The things stopping me are
* If I die , age 66 , my kids get nothing from my pension. If I had the apartment , they would inherit that.
* If I put a little extra towards the rental apartment mortage , I could quite easily have it cleared in 15 years time , allowing me to cut back to part time work , in my mid fifties
The issues I forsee are
* Risk of interest rates rising - though I think I can mitigate this by offsetting agaisnt tax bill
* Potentioal govt legislation on the right of landlord to sell
Any opinions ?