# Advice on how to proceed



## New2this (5 Feb 2009)

Age: 31


Annual gross income from employment or profession: 58,800


Type of employment: e.g. Civil Servant - semi state

In general are you:
(a) spending more than you earn, or
(b) saving? - b

Rough estimate of value of home – 250,000
Amount outstanding on your mortgage: - 195,000 (163,000 at 5.1 fixed until this july) (32,000 top up at 5.1 fixed until July 2010)

*What interest rate are you paying? **5.1 fixed*

Other borrowings – car loans/personal loans etc – no 

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: Only about 2 grand as getting married soon and all savings have been spent on this. Once this is out of the way will be saving 500 a month from the summer again. 

Do you have a pension scheme?  yes

Do you own any investment or other property? I am moving out of my property into husband to be’s which has no mortgage on it. Just rented my place this week, have contacted bank to get information on breaking fixed rate and cost to move to investment or other bank. They said if I stay with them I just need to write to them informing them that I’m moving out and they will adjust trs etc.  I would have liked to sell house but cant in current climate. 

Ages of children: None yet but hopefully in next few years. 

Life insurance: 12.50 on main mortgage, 12.50 on top up 


*What specific question do you have or what issues are of concern to you?*
*I am waiting on the letter to see if breaking fixed rate and/or moving to another bank would be a better option now this is an investment property. *
*Should I change to interest only mortgage as it will be investment.  Currently my mortgage works out at 1045 a month, rental income is 845, any rough guildline on the tax implications with these sort of figures?*
Anything else you can advise thanks


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## PaddyW (5 Feb 2009)

Changing to interest only is usually the best option on an investment property. You can write off the cost of fittings and fixtures etc. against any rental income you receive. Others can advise you better.


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## New2this (5 Feb 2009)

Thanks Paddyw, hopefully the letter will arrive so I can see things a bit clearer, I'm an unwilling landlord to say the least! But I'm thankful I can afford the repayments, just want to do it in the best way.


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## saintstephen (5 Feb 2009)

Make sure that you register the tenent with the PRTB, you won't be able to write off the mortgage interest as an expense otherwise.


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## Orga (5 Feb 2009)

Not my area but you may need a BER cert to rent property but that's minor beer.

You don't need to spend all your savings on your wedding - it is interfering with your ability to get out of a difficulty if you need cash quickly. So, scale back on the event - the hotel will be your main cost - go back to them and re-negotiate. The put the saved money away. Do not rely on cash gifts as I am aware of a number of weddings where many guests didn't bring ANY gift - I was appalled.

If you are a FTB you retain the proportion of the TRS due to you if you go on ur busband's mortgage. Consult your solicitor on this and don't pay a fee as it's only a pre-lim inquiry. Fee will follow if you do proceed to action. But this not relevant unless you want to do some fancy high jinks with a re-mortgage on hubbies property.

Devise a savings plan AND an investment plan. in a nutshell, investment means speculation and possible loss and possible gain while savings means guaranteed returns within bounds.

If you planning to have children get the work done to the house if any is needed before you do have your first.

Do your financial planning for when you might/will have kids taking a long view on childcare etc so that if and when you do start a family the hard negotiating is already done with your hubby and you have a sense of the position if you decide to take unpaid leave or career break especially as now in your sector some on career breakcannot return as their job not there any more.

Finally, good luck on your wedding day, relax, enjoy it, have fun. The day will come and go, all that really matters is that you and he show up with a few witnesses, ye both say yes and that ye treat each other right and do your best for each other from then on.


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## New2this (5 Feb 2009)

Hi thanks for that, wedding is all but paid for now bar the last few bits, so can't cut back now, its not expensive in terms of Irish weddings as we've kept it small and resonable, 50 people!. I'll be back saving in a few months, my job is safe so that's a bonus if I was to get ill or that. Hubby to be has savings so can tap that if needs be. 

I've to meet the letting agent to fill in the prtb forms, ekk about the BER cert just googled that and hopefully I won't need it but I'll cross that if I have too. Unfortunately couldn't avail of the RAS in the area as they have a lot of houses already on the scheme there. 

Our new house (husband to be in name) has no mortgage on it and the top up on my mortgage was used to gut it and do it up so we are set that way. So lucky thank god!

Thanks for the advice on savings, I'll keep putting away 300 into my aib high interest account and I'll look at putting the 200 into an investment plan. 

Kiddy wise if we do have them I'm likely to keep working in the medium term, I've spent a long time getting where I am don't want to walk away or put it on hold, hubby to be more in a position for flexible/part time, stay at home dad set up. 

Do you know if it'll be easy to do my own tax returns on the rental income or is it best to get a tax specialist. 
Thanks for the good wishes on the wedding, looking forward to life as a Mrs  but not as a landlord!


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## PaddyW (6 Feb 2009)

Pick another savings account to put that 300 a month into. AIB high interest account is only paying 2.24% at the moment. I know, because I have one! Check the best buys section for best interest rates.


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## PaddyW (6 Feb 2009)

Oh and the very best of luck on your wedding. Congratulations.


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## New2this (6 Feb 2009)

Thanks for that on the savings I'll look to change it,


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