Personal details
Your age: 49
Your spouse's age: 55
Number and age of children: 1, 16yrs
Income and expenditure
Annual gross income from employment or profession: 55,000 approx including bonus
Annual gross income of spouse/partner: nil at present, expect at least 55,000 once employment sourced
Monthly take-home pay: 2,800 at present, expected minimum 5,600 once spouse finds employment
Type of employment - Employee
Employer type: Private
In general are you:
Could manage on current income, but there would be little left over for extras. Spouse living off savings, I am currently saving from my income.
Summary of Assets and Liabilities
Family home value: 400k (estimate - relatively new build would cost approx 547k to build now based on build costs)
Mortgage on family home: 53k
Net equity: 343k
Cash: 15k (repaid approximately 32k debt recently which has lowered cash reserves).
Buy to Let Property value: 500k approx
Buy to let Mortgage: 120k
Net Equity: 380k
Total net assets: 738k
Family home mortgage information
Lender - BOI
Interest rate - 3.4% fixed for 5 years (fixed Jun-25)
If fixed, what is the term remaining of the fixed rate? 4.75 years
Remaining term: 12 years
Monthly repayment: €521 (includes max over payment on fixed rate of 10%)
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?
Pension information
Value of pension fund: 40,000 PRSA
Spouse: 51,000 PRSA
Buy to let properties
Value: 500k approx
Rental income per year: 24.5k
Rough annual expenses other than mortgage interest : 8k last year however this included boiler replacement of 5k, so 3-4k probably similar average cost
Lender: PTSB
Interest rate: Tracker ECB +0.8%
Monthly repayment: 1755
Remaining term: 7 years
Other savings and investments:
None
Other information which might be relevant
Life insurance: Mortgage insurance only on both properties - in the event that one of us dies mortgages will be repaid.
What specific question do you have or what issues are of concern to you?
Weighing up selling the rental property and repaying both mortgages.
The new rules due are a concern if required to sell with tenants insitu as we are below market rent in RPZ and low % margin for investors considering purchase. Due to their long tenancy they would be entitled to 224 days notice.
Both of us have low pensions and were accidental landlords due to the housing crash and both of us losing our jobs in construction in 2010. The plan was always that we would hold on to the rental property as a pension, however running some rough figures seems to give the same benefit to selling as holding on to the house for 10 years, but without the headache of looking after the property, tax returns etc.
My thoughts would be to take the balance after debts are cleared and hold in a high interest or low risk investment account, then paying the max tax efficient amount each year to our pensions. Possibly also make some home improvements such as PV panels, reducing home running costs further.
CGT won't be an issue as we bought in 2007 and are unlikely to make a profit after stamp duty, conveyancing fees, stamp duty, loan for refurbishment etc is taken into consideration. It would have to go for more than 530k before CGT would be payable. Location is central north Dublin city.
Having family home mortgage paid would give good security and lower outgoings.
Child plans to attend university in 3 years and would allow saving for this.
Am of the mind that I would rather have a nice life, experiences etc rather than hold on to property for the sake of having assets. In addition I feel it's unlikely that child will wish to attend university in Dublin, which was another reason we were holding on to the property.
Long notice period for tenants would bring us into May, this may not be the best time for selling.
Are there any other factors I should take into consideration?
Your age: 49
Your spouse's age: 55
Number and age of children: 1, 16yrs
Income and expenditure
Annual gross income from employment or profession: 55,000 approx including bonus
Annual gross income of spouse/partner: nil at present, expect at least 55,000 once employment sourced
Monthly take-home pay: 2,800 at present, expected minimum 5,600 once spouse finds employment
Type of employment - Employee
Employer type: Private
In general are you:
Could manage on current income, but there would be little left over for extras. Spouse living off savings, I am currently saving from my income.
Summary of Assets and Liabilities
Family home value: 400k (estimate - relatively new build would cost approx 547k to build now based on build costs)
Mortgage on family home: 53k
Net equity: 343k
Cash: 15k (repaid approximately 32k debt recently which has lowered cash reserves).
Buy to Let Property value: 500k approx
Buy to let Mortgage: 120k
Net Equity: 380k
Total net assets: 738k
Family home mortgage information
Lender - BOI
Interest rate - 3.4% fixed for 5 years (fixed Jun-25)
If fixed, what is the term remaining of the fixed rate? 4.75 years
Remaining term: 12 years
Monthly repayment: €521 (includes max over payment on fixed rate of 10%)
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?
Pension information
Value of pension fund: 40,000 PRSA
Spouse: 51,000 PRSA
Buy to let properties
Value: 500k approx
Rental income per year: 24.5k
Rough annual expenses other than mortgage interest : 8k last year however this included boiler replacement of 5k, so 3-4k probably similar average cost
Lender: PTSB
Interest rate: Tracker ECB +0.8%
Monthly repayment: 1755
Remaining term: 7 years
Other savings and investments:
None
Other information which might be relevant
Life insurance: Mortgage insurance only on both properties - in the event that one of us dies mortgages will be repaid.
What specific question do you have or what issues are of concern to you?
Weighing up selling the rental property and repaying both mortgages.
The new rules due are a concern if required to sell with tenants insitu as we are below market rent in RPZ and low % margin for investors considering purchase. Due to their long tenancy they would be entitled to 224 days notice.
Both of us have low pensions and were accidental landlords due to the housing crash and both of us losing our jobs in construction in 2010. The plan was always that we would hold on to the rental property as a pension, however running some rough figures seems to give the same benefit to selling as holding on to the house for 10 years, but without the headache of looking after the property, tax returns etc.
My thoughts would be to take the balance after debts are cleared and hold in a high interest or low risk investment account, then paying the max tax efficient amount each year to our pensions. Possibly also make some home improvements such as PV panels, reducing home running costs further.
CGT won't be an issue as we bought in 2007 and are unlikely to make a profit after stamp duty, conveyancing fees, stamp duty, loan for refurbishment etc is taken into consideration. It would have to go for more than 530k before CGT would be payable. Location is central north Dublin city.
Having family home mortgage paid would give good security and lower outgoings.
Child plans to attend university in 3 years and would allow saving for this.
Am of the mind that I would rather have a nice life, experiences etc rather than hold on to property for the sake of having assets. In addition I feel it's unlikely that child will wish to attend university in Dublin, which was another reason we were holding on to the property.
Long notice period for tenants would bring us into May, this may not be the best time for selling.
Are there any other factors I should take into consideration?
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