Investment property in Galway ???

[1975]

Folks,

With all the news on house prices going down, too many houses to let etc I need advice. Starting to build a house in April and not sure whether to sell the house we are in or hold on to it. (bank is giving us the option) It will be a struggle to hold on to it but we will manage. Not sure if we should. We would hope it will be our pension in years to come. Has anyone good advice on this. I know its down to me at end of day but would love to hear from someone that has been or is in this situation......

Thanks

 

[CCOVICH]

If you can sell your existing property, why not set up an equity based pension?

Having said that, if you are in it for the long run, it could make sense to hold on to both properties. However, there could be some lean years ahead, and becoming a landlord carries more responsibility these days.

You (or an independent advisor-not the bank) need to crunch the numbers to see what will be in your best interests.

 

[1975]

cheers Ccovich - need to look up equity pension. not sure what it is - i will do a search on this site as i am sure it is explained in previous posts....

The one thing i can do is maybe rent for one year and see how that goes. I am tempted in looking abroad -to buy to rent. Some collegues I work with have done that and seem quite happy - its a big step. I feel if I sell the house the money will get absorbed in the new house we are building - I see this as a waste as we will be in this new house for the long haul so willing to take time in doing up...

I would rather be poor for another few years knowing I have assets but little cash. Is this the right approach. Maybe I should just build house of dreams and start a proper pension ................. Decisions............

 

[CCOVICH]

Most pensions are based (largely) on equity based funds, i.e. funds that hold shares. But they could also have a significant holding of bonds, and may hold other assets such as property or cash. Having said that, each fund is different.

I would advise you to look at the tax implications of each approach, and you may be better off going to an Authorised Advisor for professional advice.