Thanks Easel for your prompt reply, much appreciated.
Not sure about the value of my pension. I was told I can make pension contribution up to 12%. Do you reckon I should max it out?
Shall I consider selling my current investment property and buy a new one to benefit from claiming mortgage interest rate ?
You are currently earning a net yield of around 5% on the rental - roughly 2.5% after-tax. That's less that your mortgage rate so I'd sell the rental and pay off your mortgage completely.
Thanks Sarenco and moneymaker . I will certainly consider increasing ( even max out) my pension contribution.
I must admit, I need to do a lot of research in relation to increasing my pension contribution, not sure how high I could go ( guess 12%), whether I can reduce it down the road if my circumstances change, and if I have a say in how my pension is invested, any other advise please let me know, thanks in advance.
Age | % of Salary (Max €115,000) |
30-39 | 20% |
40-49 | 25% |
50-54 | 30% |
55-59 | 35% |
60 and over | 40% |
That wouldn't work.If you really wanted to have mortgage interest to claim against tax on your rental - rather than buy another investment property, why not mortgage your current rental property and use the proceeds to reduce your PPR mortgage.
That wouldn't work.
To be deductible, the interest must be on a mortgage that is used to purchase, improve or repair a rental property. It doesn't matter what property the loan is secured against.
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