# Invest where?



## 1971gurl (7 Oct 2019)

New to this but need some advice.
Have about 150k to invest from an inheritance. 
I have cleared my loans and only remaining loan is mortgage which I share with husband.
379k owing in this with 29 years remaining. I am 49.
Marraige has not been good for last three years, husband in out of work due to depression. Im not sure if we will be ok or not.  Hoping we will - who knows.
I have a good job. 
My problem is that I have this cash and I only have one shot at doing the right thing with it, one chance.
Few scenarios: 
I buy house and rent it out over 10 / 15 years, then sell it
I build onto our house and do rental / airbnb / rent a room scheme
I pay off some of our mortgage and reduce the monthly amount ( currently it is 1300pm).  

My fears:
If I pay off say 100k off our mortgage - I will never see that money back again - unless I do some agreement where the house is sold in x years time and I receive my 100k back...is this even a possibility with house prices now?
What if we split up and I have invested 100k?
I buy a house, rent out, sell after 15 years, get hit by 33%CGT and end up with little gain.



At the moment there is a house right next door to us for sale and it would be easily purchased -
I really want to get this right.   
But I need some positive advice please?
Thanks in advance.


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## noproblem (7 Oct 2019)

Children, if any, would surely come into the equation in any decisions. Can you sit down with hubby, have a very serious and caring chat about where you guys are at and see where it gets you. Does he know about the inheritance and what does he think? Yes, it is a big decision in your lives.


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## goingforgold (7 Oct 2019)

To get a detailed reply you would need to provide more information, for example how much is your house worth, any kids or other investments etc. How are you setup for pension privision. And aside from that I agree that you need to determine with your hubby where your marriage is at...that's most important thing


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## 1971gurl (7 Oct 2019)

We have no kids.  He does know about the inheritance yes, he hasnt given any opinion on it either way.  Its kinda up to me.
I want to do something with the money because it will just frittle away in a bank account otherwise.
Could a 10 year plan work where I pay off 100k, which would bring our payments down to about 800pm.  Draft an agreement about the 100k. Do the extension and rent it out, further bringing our pm payment down.  Then we voluntarily pay in € to mortgage - amounts we can afford.  Hopefully in 10 years we will have reduced the mortgage and we could sell the PPR, I get my investment back ?


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## lledlledlled (7 Oct 2019)

Unless you're on a cheap tracker rate, i'd pay off the mortgage.


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## noproblem (7 Oct 2019)

By all means do the extension and endure all the hassle involved in doing so. Have you any idea of what's involved in b/b, and similar? Will it add value to your house if selling, what will an extension of €100k get you, your PPR i'd imagine will be subject to tax if selling. There's so many scenarios involved and as someone else has said not nearly enough information given for a more detailed assessment of what you should do.


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## NoRegretsCoyote (7 Oct 2019)

If I'm not wrong you will be paying your mortgage until you are 78.

How do you plan to pay this in retirement?


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## 1971gurl (7 Oct 2019)

goingforgold said:


> To get a detailed reply you would need to provide more information, for example how much is your house worth, any kids or other investments etc. How are you setup for pension provision. And aside from that I agree that you need to determine with your hubby where your marriage is at...that's most important thing


House valued at 260k. Was thinking on an extension of about 60K - allowed 40sqm without planning permission.
If house sold - there is no CGT as it is PPR.
No children. Marraige was strained but is a bit better. If Im honest I dont know how it will turn out...dont think he knows either,
No pension for either of us.
Holding on to about 100K in shares for myself as a cushion for older life - ( 100k is based on current share value)
Mortgage is a cheap tracker, 29 years left, balance of 379,000, monthly payment of 1300.
Very hard to explain how I feel - I know the right thing to do is bring down the mortgage BUT I feel like I would be loosing my money if I didnt have a way to get it back later - by means of selling the house etc.  And then would we have enough to start again, downsize etc.


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## 1971gurl (7 Oct 2019)

NoRegretsCoyote said:


> If I'm not wrong you will be paying your mortgage until you are 78.
> 
> How do you plan to pay this in retirement?


That is why I need a plan now.


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## huskerdu (7 Oct 2019)

Can you confirm that these numbers are correct as you have quoted. 

- House value €260K , outstanding mortgage €379K :  €119K negative equity

This is very significant to what your strategy should be.


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## unstacked (7 Oct 2019)

huskerdu said:


> Can you confirm that these numbers are correct as you have quoted.
> 
> - House value €260K , outstanding mortgage €379K :  €119K negative equity
> 
> This is very significant to what your strategy should be.


Yes all correct


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## Zenith63 (7 Oct 2019)

I think you should speak to a solicitor before you do anything further.

I know you're only looking for positive advice, but you could find yourself sitting in-front of a judge in a few years time who could look at you making good money and your husband medically unable to support himself and split things in a way you feel is very unfair.

I'm not sure if a contract regarding that inheritance is worth the paper it is written on, your husband can probably claim he brought things to the marriage at other times.  In-fact he could claim you pressured him to sign it while he was unwell, these things get very messy in divorce proceedings and you would be rolling the dice in-front of a judge.


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## Steven Barrett (7 Oct 2019)

The first thing you should do is spend money on some marriage counselling. It may save you hundreds of thousands in the long run. 

I wouldn't make any decisions on the money until after you and your husband have talked to someone and figure out where your marriage is. If things are looking good, you should pay down your mortgage. No one wants to be paying off a mortgage to age 78. Paying down €125,000 off the mortgage would have it paid off at age 67.


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## noproblem (7 Oct 2019)

Going on the above you're in a right fix in some ways. You say you've a good job but no pension. Hope you've got good health insurance because you can never tell what may happen at any time, today, tomorrow or ? Your husband too, even if you might not want to believe it, is sort of totally dependent on you. As I said already, you guys really need that chat or else your life will go the same route as his. I think this is the most important thing you've got to do right now. Your house if you sell it now is worth €120,000.00 less than you've got to pay back so think twice about putting another €100,000.00 into it and all the hassle that will give you in letting, etc. Put your bit of inheritance into any bank a'c for a while and sort your future with the other half. It will gradually bring both of you down if you don't and an inheritance will be the least of your worries then. I've seen it in my own family.


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## 1971gurl (7 Oct 2019)

noproblem said:


> Going on the above you're in a right fix in some ways. You say you've a good job but no pension. Hope you've got good health insurance because you can never tell what may happen at any time, today, tomorrow or ? Your husband too, even if you might not want to believe it, is sort of totally dependent on you. As I said already, you guys really need that chat or else your life will go the same route as his. I think this is the most important thing you've got to do right now. Your house if you sell it now is worth €120,000.00 less than you've got to pay back so think twice about putting another €100,000.00 into it and all the hassle that will give you in letting, etc. Put your bit of inheritance into any bank a'c for a while and sort your future with the other half. It will gradually bring both of you down if you don't and an inheritance will be the least of your worries then. I've seen it in my own family.


Thank you. I take your point. We have alot of talking already done and no wiser.  Cant go into much detail but alot of water under bridge already. He has a job, is able to work. Illness does not prevent him from working.
Unfortunately he is not good with money..he has a good job...but is not a saver or a planner. If we part..we will be tied to the house via mortgage.  That's why I suppose the extension or other house appeals to me..independent space. If we stay together and all turns around..well and good.
It's a total pickle.


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## lledlledlled (7 Oct 2019)

1971gurl said:


> Thank you. I take your point. We have alot of talking already done and no wiser.  Cant go into much detail but alot of water under bridge already. He has a job, is able to work. Illness does not prevent him from working.
> Unfortunately he is not good with money..he has a good job...but is not a saver or a planner. If we part..we will be tied to the house via mortgage.  That's why I suppose the extension or other house appeals to me..independent space. If we stay together and all turns around..well and good.
> It's a total pickle.



At the risk of straying from finance to relationships, if you were to separate, I don't see why you would want to live in the house next door. 

Whether or not you separate, you need to focus on rectifying two issues with your finances...

1. Mortgage - you are in significant negative equity. The current economic cycle may be a at its peak. If it is, your negative equity could increase. I would make it a priority to at least overpay the mortgage until the value of the house and mortgage are equal. 

2. You have no pension. Assuming you can pay off your mortgage in full before retirement (the assumption being that you put a plan in place to address your mortgage situation), you are still going to need income in retirement. If you have two good jobs, no kids, no pension contributions, and a cheap tracker, you are going to have a massive change in lifestyle in retirement. 

I think you need to compile a detailed household budget to see exactly where your money is going each month.  From the limited details you have given so far, you seem to be living way beyond your means. 

You need to address both of the above items whether or not you are also heading for an expensive separation.


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## Bronco Lane (8 Oct 2019)

You already have funds invested in shares. You could purchase further shares that pay a high dividend. Use the dividends to reduce mortgage. You can get between 4% and upwards of 8% on some dividends. The only problem at the moment is that a lot of shares are quite expensive to purchase now and may fall back because of China/Turkey/Syria and the Trump effect.  

I have €100k sitting in a stockbrokers account waiting to pounce when I see weakness in some shares that I am tracking. It is burning a hole in my pocket but over 20 years of doing this is telling me to "wait".

You don't have to do anything just yet.


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## 1971gurl (8 Oct 2019)

Bronco Lane said:


> You already have funds invested in shares. You could purchase further shares that pay a high dividend. Use the dividends to reduce mortgage. You can get between 4% and upwards of 8% on some dividends. The only problem at the moment is that a lot of shares are quite expensive to purchase now and may fall back because of China/Turkey/Syria and the Trump effect.
> 
> I have €100k sitting in a stockbrokers account waiting to pounce when I see weakness in some shares that I am tracking. It is burning a hole in my pocket but over 20 years of doing this is telling me to "wait".
> 
> You don't have to do anything just yet.


I know. I suppose I feel like I need to do something, when like you say I dont ..not straight away anyway. I think I will be able to have honest chat with the husb. All I'm looking for is a joint committment to a future plan. Afterall, the house is an asset that could be sold down the line but we need to do something to make a serious dent in it over the next 10 years. Whatever happens privately I am willing to stick this out. If I don't, my funds will be taken by bank. 
I can't seem to DM anyone, why is this?


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## azerogo (8 Oct 2019)

Surely starting a pension would be the best and most tax efficient use of some of the money, there is better people placed here to advise you on the lump sum amount to start (i believe at your age its 25% of income) plus what you should try and start adding monthly going forward, you still have 15/20 years to build it up.


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## Leo (8 Oct 2019)

1971gurl said:


> I can't seem to DM anyone, why is this?



New users aren't allowed. Note PG #14, if you have specific questions based on what others have said, ask them publicly it the thread.


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## Alkers86 (8 Oct 2019)

If you don't have a pension start one immediately and backdate your AVC contributions by as much as you can with the inheritance.

Aside from that I would not do much else with the inheritance until you can figure things out with your husband. The KBC extra regular saver account is a half decent return for balances up to 40k, I would open one of those in your own name and maybe prize bonds or something else with the remainder after the pension contributions.

You say your husband is earning but is not good with money. Can you get him to setup a standing order for each payday for a reasonable contribution to the joint account / mortgage? You may have this already but it's not clear from your post. Ideally the joint account would take all his wages and drip feed him a reasonable allowance / whatever he needs on a weekly basis so he has a continuous stream as opposed to a large monthly sum.


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