# Advice - Saving / Mortgage



## irishbailey (28 May 2011)

Hello,
Looking for advice on what to do:
Just about to be married both ages 35
Mortgage of 105K on AIB tracker for another 25yrs
Savings: Me: 60K , Futurewife: 220 K
I am working  - 39K pa but partner is not and may not be for future as on invalidy pension due to an injury.
No pension for either of us.
No loans at all

Should we pay off mortgage?

Have been given advise to purchase a small apartment in dublin/galway and rent it out and get an income from it?

We are not risk takers so want something safe.


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## Slim (29 May 2011)

Hi Irisbailey,

You have a mortgage of 105k and combined savings of 280k. You may be enjoying some tax relief on that, TRS. Depending on what that is worth, you could reduce the mortgage or pay it off and still have 175k left. If the mortgage is with IPTSB you could get a 10% bonus on paying it off. Have you got a pension in place? You can still maximise the tax relief for last year if you wish. This may be agood time to invest in an apartment if you know what you're doing- personally I would avoid property as an investment. A lot of hassle, IMHO. Just my opinions.Slim  

PS: All this assumes that your and your fiancee's funds may be regarded as one.


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## irishbailey (29 May 2011)

Thanks Slim,
Mortgage is with AIB, It's only 450€ a month after TSR.
No pension and with pensions being robbed by the government I am weary of taking out one.
Wouldnt rally know much about property at all - just some people telling us to invest and rent.


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## Slim (29 May 2011)

irishbailey said:


> Thanks Slim,
> Mortgage is with AIB, It's only 450€ a month after TSR.
> No pension and with pensions being robbed by the government I am weary of taking out one.
> Wouldnt rally know much about property at all - just some people telling us to invest and rent.


I would tend to ignore 'people' and maybe seek professional independent advice. 
 Might be worth the fee. Good luck. Slim


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## Greta (29 May 2011)

irishbailey said:


> Wouldnt rally know much about property at all - just some people telling us to invest and rent.



Don't just go blindly investing in property because somebody "advised" you so but in general this is not a bad idea in the current climate, or maybe better in a year or two. What I mean is the sentiment about property is currently very negative, so from a contrarian point of view in might be time if not to invest, but at least start looking into it

However, learn as much as you can about property market first, and about issues involved in renting out a property, and generally about finance. THEN seek professional advice if there is something unclear to you. 

It might be an idea in the meantime to move at least some of the money out of Ireland, until you decide what to do with it, or pay off some of your mortgage, still leaving yourselves with enough money to buy another property  if you decide to do so.

Is your future wife's invalidity pension not means-tested? If it's not, she can buy the property in her name, as this will help to utilise her standard-rated tax band while her other income is small (assuming her invalidity pension is small).


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## irishbailey (30 May 2011)

Thanks Greta - I think talking to an advisor could be the next option.


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