Looking for financial advice

M

mihaela

Registered User
Messages
57
Hi all,

I'm looking for financial advice. My situation is:

I'm recently divorced, i have 1 daughter ( 4.5 years). The childcare costs are curently aprox €240/ month. The father is suposed to pay 500€/ month towards her, but he's not doing it.

I earn 83k gross with a net of 57k and i have 55k in savings. I have no dept (other than the mortgage), loans or credit card. I don't contribute towards pension and i dont have private healthcare insurance.
I'm generaly good with money, i managed to save while having high childcare costs when my daughter was younger and paying for a divorce.
 

The house, solely on my name is worth aprox 450k ( remaining mortgage aprox 175k). Currently finishing up on a 5 year fixed term @ 3%, and overpaid my mortgage by €90/ month for the last 5 years ( that's the max the bank allowed me to overpay by). My current mortgage payments are 1083/ month.
I'm waiting to see how much the interest will go up by.

The question: i was contemplating to:

1. Buy an apartment for rental in Ireland. This would cost aprox 190k in my area and could rent out for aprox 1300€/ month. Probably this is high risk due to the curent property prices
2. Pay a lump sum of my mortgage once im out of fixed term
3. Buy an apartament abroad for rental. I could get something for 56k and that would give me a monthly return of €250 to €300.
 
Why aren’t you contributing to a pension?!

And why don’t you have health insurance?!

Don’t overcomplicate things - start contributing the maximum amount of tax-relieved contributions for your age to a pension and take out at least a basic health insurance plan.

And if there’s anything left over, throw it at the morgtage.

Forget about buying rental properties.

Keep it simple.
 
Agree with sarenco, start a pension asap. Keep €10k as a cushion
Look into health insurance for both of you
Throw the balance off the mortgage, and depending on which bank your with it might be worth looking at switching
 
luckystar said:
Agree with sarenco, start a pension asap. Keep €10k as a cushion
Look into health insurance for both of you
Throw the balance off the mortgage, and depending on which bank your with it might be worth looking at switching
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Thank you. I'm with Boi and I'll definately be switching.
I have tought about health insurance, but I've always been in good heath, I'm 38 and I'd probably get quicker access to medical care by traveling abroad. I have some enherited properties abroad ( only worth about 100k), but it's a place to stay in if I need to.
 
mihaela said:
2. Pay a lump sum of my mortgage once im out of fixed term
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mihaela said:
overpaid my mortgage by €90/ month for the last 5 years ( that's the max the bank allowed me to overpay by).
Click to expand...

You can overpay as much as you like. 10% is just the maximum before the bank checks if there is a break fee applicable.
Because interbank rates have increased so dramatically since you fixed, there will be no break fee (but confirm with your lender).

You can also break early to refix (or switch) and lock in currently available rates.
 
mihaela said:
I have tought about health insurance, but I've always been in good heath,
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I’ve never had a car crash and would still take out car insurance even if it was wasn’t a legal obligation.

mihaela said:
I'm 38
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My health was good until I was 38 too and it’s not so good since. Health problems increasingly occur with age. You don’t have to be an actuary, just look around you. Ireland’s health insurance rules also penalise people who start after age 35 so better to start early.

Otherwise you’ve clearly had a rough time and are doing well financially in the circumstances. You have a big financial responsibility as a lone parent and you don’t need additional risk via a lack of health insurance and a rental property.

So the advice above is good. Max pension contributions and forget about a BTL.good luck!
 
mihaela said:
Thank you. I'm with Boi and I'll definately be switching.
I have tought about health insurance, but I've always been in good heath, I'm 38 and I'd probably get quicker access to medical care by traveling abroad. I have some enherited properties abroad ( only worth about 100k), but it's a place to stay in if I need to.
Click to expand...

I still think a basic health insurance for both of you is a very good idea. And maybe life assurance to cover care for your daughter if anything happens to you.
Other than these you’re doing very well and in a comfortable position financially
 
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