Investing €300k

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ElaineBenes

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We are getting married shortly. Himself is currently in the process of selling his house and we are hoping to close a sale for approx €340/350k shortly. The outstanding mortgage on the home is approx €35k.

We live in 'my' house. My outstanding mortgage is about €165k. It's difficult to say what it is worth but I would estimate that it would be worth twice the mortgage amount as it is a largish self build. I am on a tracker so my repayments are only about €500 per month.

I am so all over the place money wise that I don't even know what my tracker rate is! I am just wondering what the best route is if we find ourselves in the fortunate position of having approx €300k.

My first question is - Should we repay the mortgage on our home? If the interest rate on the tracker is less than some savings rate, does this mean that we should not pay off the mortgage - but should if mortgage interest rates rise??

Mortgages aside, what investments would be advisable? A mixture I'm sure? (I know there are loads of threads to advise me, which I will try to get around to reading)

We are comfortable on a day to day basis - we both have good incomes. I am public sector, however I have a car loan & €3k on a credit card. Himself is in the building trade but is doing okay and has no loans except one commercial vehicle lease.

Would anybody support the notion of purchasing an investment property? Outdated notion?

I hope I am correct in saying that there are no CGT issues here in relation to the sale of the house? Even if it goes through after we get married?

I hope to add his name to ownership of 'my' house. Straight forward?
 
I would pay it off unless you can find an investment which gives a higher rate of return than the rate of the mortgage.

Would anybody support the notion of purchasing an investment property? Outdated notion?

Maybe not outdated but certainly a lot riskier than it once was..if you were think about a property in Ireland...to further reserach this aspect try the http://www.thepropertypin.com/

I hope I am correct in saying that there are no CGT issues here in relation to the sale of the house? Even if it goes through after we get married?

You might need to check this with Revenue for PPR aspect.. ,,
 
My first question is - Should we repay the mortgage on our home? If the interest rate on the tracker is less than some savings rate, does this mean that we should not pay off the mortgage - but should if mortgage interest rates rise??
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You got it in one. You should not repay the mortgage. Check out this Key Post. Should I use a lumpsum to pay off my mortgage?

Investing in shares beats investing in property on nearly all counts. The one advantage of buying property is that you can write off the interest paid on a mortgage against tax. If you are investing your own cash, buying shares is better. Especially when you already have a property.

If you are considering investing in property, why not simply keep your boyfriend's house as an investment and save yourself the transaction costs of selling that one and buying another one?
 
Thanks Brendan. I'll check out that thread.

Brendan Burgess said:
If you are considering investing in property, why not simply keep your boyfriend's house as an investment and save yourself the transaction costs of selling that one and buying another one?
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The house we are selling is not really a suitable rental property. It is in the country and is fairly large - I'm not sure that it would attract many renters. It is a family home type property. The are a squillion empty estate houses in the nearly village, that would probably be more attractive to the rental market (if there is one).
We did the interior of the property up last year, before we decided to move - so we decided not to rent it in the interim, whilst trying to sell.

Also it is a bit of a distance away from us - so the upkeep of the garden etc is proving difficult.
 
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