Hello Everyone. Any advice at all will be welcome.
PERSONAL:
Age: 50
Spouse Age: 50
EMPLOYMENT:
Annual Gross (me): 75K - Private Sector
Annual Gross (spouse): 71K Public Sector
SAVINGS
Savings :
125K between cash and ETFs.
Pensions:
Self : AVCs of about €500K - Contribute the max for my age monthly.
Spouse : AVCs of about €130K plus will get a public sector pension after 40 years service - Until recently contributed €400PM AVCs but stopped as they would be in the high tax bracket on retirement, so a bit of a waste.
Other income:
Monthly Child Benefit -€140PM child benefit
1 Investment property - See below
OUTGOINGS:
Credit card - paid in full each month.
Life insurance - €200 per month life insurance. €800k on death.
PROPERTY:
PPR - Value €350K, €110K left to pay. €1010PM at 0.75% tracker.
Rent from investment property : €12K - Worth €200k, Mortgage - 10 years left at 0.8% tracker (€55 remaining)
Query:
We are both planning to retire somewhere between 55 and 60. Lets say 57.
We have plenty of income and are net savers.
We have two very good tracker mortgages which are well under control.
But recently have decided that another investment property would be nice, with a view to retiring to it in the country eventually.
If we dont it stays as an investment property.
The rental income would be about €10000PY and the cost of the property would be about €200K.
We have been approved for a mortgage of €120K if we want it. But probably would want maybe €100K and use the savings for the rest.
There would also be management charges and site fees and we wouldnt live near it. If its empty we would use it as a holiday home for those periods.
What i really want to know is are we mad to go for this?
If we made a loss on this investment property for a few years, is this loss allowed against the profit on the other rental property?
Say worse case scenario it was empty for 10 months. If rent taken was €2000. Expenses was €6000 (€4000 interest + 1000 management + 1000 maintenance), so a loss of €4000.
How would that effect our total tax situation between the two properties.
Im not saying I envisage things being that bad, but you never know and id just like to figure out what happens in that scenario?
Any other input would be much appreciated. I love reading money makeovers here, so its time i did one
PERSONAL:
Age: 50
Spouse Age: 50
EMPLOYMENT:
Annual Gross (me): 75K - Private Sector
Annual Gross (spouse): 71K Public Sector
SAVINGS
Savings :
125K between cash and ETFs.
Pensions:
Self : AVCs of about €500K - Contribute the max for my age monthly.
Spouse : AVCs of about €130K plus will get a public sector pension after 40 years service - Until recently contributed €400PM AVCs but stopped as they would be in the high tax bracket on retirement, so a bit of a waste.
Other income:
Monthly Child Benefit -€140PM child benefit
1 Investment property - See below
OUTGOINGS:
Credit card - paid in full each month.
Life insurance - €200 per month life insurance. €800k on death.
PROPERTY:
PPR - Value €350K, €110K left to pay. €1010PM at 0.75% tracker.
Rent from investment property : €12K - Worth €200k, Mortgage - 10 years left at 0.8% tracker (€55 remaining)
Query:
We are both planning to retire somewhere between 55 and 60. Lets say 57.
We have plenty of income and are net savers.
We have two very good tracker mortgages which are well under control.
But recently have decided that another investment property would be nice, with a view to retiring to it in the country eventually.
If we dont it stays as an investment property.
The rental income would be about €10000PY and the cost of the property would be about €200K.
We have been approved for a mortgage of €120K if we want it. But probably would want maybe €100K and use the savings for the rest.
There would also be management charges and site fees and we wouldnt live near it. If its empty we would use it as a holiday home for those periods.
What i really want to know is are we mad to go for this?
If we made a loss on this investment property for a few years, is this loss allowed against the profit on the other rental property?
Say worse case scenario it was empty for 10 months. If rent taken was €2000. Expenses was €6000 (€4000 interest + 1000 management + 1000 maintenance), so a loss of €4000.
How would that effect our total tax situation between the two properties.
Im not saying I envisage things being that bad, but you never know and id just like to figure out what happens in that scenario?
Any other input would be much appreciated. I love reading money makeovers here, so its time i did one