AVCs or reduce mortgage?

F

fluffy47

Registered User
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137
First time posting so excuse me if I ramble!!!1
Myself and Hubbie bought our apt 8 years ago for 127kpunts in DUblin8. Our outstanding balance is 100keuro. My question is this-should I stop paying into my AVC (playing catchup with this) which costs my 300euro per month and put it into our mortgage instead and use our apartment as part of my pension instead of depending on the AVC for this? The current repayments on the mortgage are 650euro per month. We are hoping to move from this property in the next 2 years or so.

Many Thanks for any advise given
 
Re: AVCs

Is the €300 cost of the pension contribution gross or net of tax/PRSI relief? E.g. are you contributing €300 but getting income tax (20% or 42%) and PRSI (most likely 6%) relief on this?
 
Re: AVCs

Are you considering letting the apartment and moving to a different house.
Bear in mind that interest on the loan for the apartment and other expenses see [broken link removed] that can be offset against tax on rental income.
See also here for FAQ on AAM

Putting money into an AVC would probably be better imho as you get tax relief on this now and probably won't pay tax when you retire.
You get better diversity for your money

If you go with the property investment option
You should reinvest the rental income after tax into pension/property
When you come to sell the property you will be liable to CGT (smaller tax bill in this instance)
 
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