locknbarrel
Registered User
- Messages
- 23
Age: 40
Spouse’s/Partner's age: 38
Annual gross income from employment or profession: 66,000
Annual gross income of spouse: 53,000
Monthly take-home pay: 4,500 - 6,000 depending whether I'm on leave.
Type of employment: Both Public Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Usually saving €1000 /m although I have taken unpaid maternity leave and similar options recently at which point we break even.
Rough estimate of value of home: 310,000
Amount outstanding on your mortgage: 0
What interest rate are you paying? N/A
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:
€130,000 savings
€10,000 in broad index ETFs
€20,000 in shares
Do you have a pension scheme? Yes - Both Public Sector
Do you own any investment or other property?
Property 1:
Value: €130,000
Mortgage: None
Interest Rate: N/A
Monthly Rent: €700
Property 2:
Value: €105000
Mortgage: €132,000 (20 years left)
Interest Rate: 0.6%
Monthly Rent: €660
Property 3:
Value: €190,000
Mortgage: €180,000 (20 years left)
Interest Rate: 0.9%
Monthly Rent: €800
Property 4:
40% share in property - Difficult to overpay or to sell.
Value of our share: €120,000
Mortgage of our share: €133,000 (10 years left)
Interest Rate: 4% variable
Monthly Rent of our share: €2000
Ages of children: 3 and 1.5 years
Life insurance: None except for life assurance associated with property 2.
What specific question do you have or what issues are of concern to you?
Spouse’s/Partner's age: 38
Annual gross income from employment or profession: 66,000
Annual gross income of spouse: 53,000
Monthly take-home pay: 4,500 - 6,000 depending whether I'm on leave.
Type of employment: Both Public Sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Usually saving €1000 /m although I have taken unpaid maternity leave and similar options recently at which point we break even.
Rough estimate of value of home: 310,000
Amount outstanding on your mortgage: 0
What interest rate are you paying? N/A
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:
€130,000 savings
€10,000 in broad index ETFs
€20,000 in shares
Do you have a pension scheme? Yes - Both Public Sector
Do you own any investment or other property?
Property 1:
Value: €130,000
Mortgage: None
Interest Rate: N/A
Monthly Rent: €700
Property 2:
Value: €105000
Mortgage: €132,000 (20 years left)
Interest Rate: 0.6%
Monthly Rent: €660
Property 3:
Value: €190,000
Mortgage: €180,000 (20 years left)
Interest Rate: 0.9%
Monthly Rent: €800
Property 4:
40% share in property - Difficult to overpay or to sell.
Value of our share: €120,000
Mortgage of our share: €133,000 (10 years left)
Interest Rate: 4% variable
Monthly Rent of our share: €2000
Ages of children: 3 and 1.5 years
Life insurance: None except for life assurance associated with property 2.
What specific question do you have or what issues are of concern to you?
- We never intended to get into property - it's something that just happened; but having a little more experience of it now, the renting and managing of the property is not something that bothers us.
- Overall I can see the amount going in vs. out annually and the paying down of debt of aggregate of all the properties works favorably, but I'm not sure is that because some properties are doing well and other properties are performing poorly and that the averaging is covering this up. I feel there is a lot of risk being so exposed to property and would be open to sell some property because of this.
- Because of valuations of when the properties were bought/received, if I were to sell CGT wouldn't kick in until property prices were to go up by 40%. Therefore I feel they may represent a better investment for us because of this as opposed to a normal investor that would buy now. Is this a reasoned argument?
- We have a lump some of cash that we are unsure of what to do with it. Setting it off against the properties may not make much sense as the trackers are low. I can't set it off against property 4 because it's only a part share in that.
- Is life assurance important for us with two kids? We have no siblings to ask about this so we're unsure whether it's important. We have no wills either which I'm concerned about.
- Over the next few years I would like to take some leave/career break (possibly 2 years) to spend with the children when they're young. I would like to have some sort of financial buffer for this goal. Perhaps €40,000?
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