Age: 54
Spouse’s/Partner's age: 51
Annual gross income from employment or profession: 70,000
Annual gross income of spouse: 45,000
Monthly take-home pay- approx. 7,000
Type of employment: Both employees in private sector
In general are you: Saving into pensions and paying capital off mortgages.
Rough estimate of value of home: €650,000
Amount outstanding on your mortgage: €110,000
What interest rate are you paying? Tracker 0.5% to expire in 8 years. Interest only but making €500 per month capital payments.
Other borrowings – Other mortgages
Do you pay off your full credit card balance each month? Yes.
Savings and investments: c. 40,000 rainy day fund
Do you have a pension scheme? Yes. Current pension funds are valued at approx 250K and 150K. Make monthly AVCs of €1000 (me) €500 (spouse). Employer also contributes 12% and 9%.
Investment Property
Northern Ireland: 3 properties. Dublin: 1 property.
Net profit in Northern Ireland before tax is usually £7K per year. Then pay roughly half this in tax to Irish revenue.
Northern Ireland 3 tracker mortgages, one about to expire. Note Rates in UK of approx £2K per year. Management Agent for 3 properties & Block Mgt for apartment complex.
1) Apartment - Mortgage £74K due 2022, will need to remortgage. Purchase £110K, Worth £125K Rent £700 per month. Currently Interest only.
2) House 1- Purchased £168K Worth £115K Rent £495 per month, Mortgage £84K. Currently Capital & Interest payments
3) House 2- Purchased £165K Worth £115K Rent £460 per month Mortgage £81K. Currently Capital & Interest payments.
Dublin
Apartment. No mortgage. Purchase €230K Worth €260K, Rent €1250 per month. Management approx €2K per year. Nothing to write off against tax but as we make €1500 per month AVCs this rental income is in effect being written off against tax.
Ages of children: 17,15,13
Life insurance: Yes *3, with PPR mortgage, work and a private policy. Past history of illness so spouse keen to keep them all.
What specific question do you have or what issues are of concern to you?
Generally we are in a good position overall but the property mgt takes a lot of my time and effort and increasingly is an aggravation.
We are not extravagant and we manage money tightly, as properties in Northern Ireland require top up with the income not covering expenses and mortgage (Capital * 2 and Interest *3).
The two houses were a bad investment and for several years the negative equity caused a lot of stress. There is the obvious capital loss plus currency loss.
Also increasing expenses due to wear and tear and age of properties etc. Market is not great for selling, in particular the houses which are not in great locations.
I wonder if I should sell the houses at a loss. Then either use these losses against the CGT on the sale of one or both apartments.
If I sold the 3 Northern Ireland properties, I could potentially clear my PPR mortgage and then have more disposable income to enjoy or pay more in AVCs with the obvious tax relief.
Spouse’s/Partner's age: 51
Annual gross income from employment or profession: 70,000
Annual gross income of spouse: 45,000
Monthly take-home pay- approx. 7,000
Type of employment: Both employees in private sector
In general are you: Saving into pensions and paying capital off mortgages.
Rough estimate of value of home: €650,000
Amount outstanding on your mortgage: €110,000
What interest rate are you paying? Tracker 0.5% to expire in 8 years. Interest only but making €500 per month capital payments.
Other borrowings – Other mortgages
Do you pay off your full credit card balance each month? Yes.
Savings and investments: c. 40,000 rainy day fund
Do you have a pension scheme? Yes. Current pension funds are valued at approx 250K and 150K. Make monthly AVCs of €1000 (me) €500 (spouse). Employer also contributes 12% and 9%.
Investment Property
Northern Ireland: 3 properties. Dublin: 1 property.
Net profit in Northern Ireland before tax is usually £7K per year. Then pay roughly half this in tax to Irish revenue.
Northern Ireland 3 tracker mortgages, one about to expire. Note Rates in UK of approx £2K per year. Management Agent for 3 properties & Block Mgt for apartment complex.
1) Apartment - Mortgage £74K due 2022, will need to remortgage. Purchase £110K, Worth £125K Rent £700 per month. Currently Interest only.
2) House 1- Purchased £168K Worth £115K Rent £495 per month, Mortgage £84K. Currently Capital & Interest payments
3) House 2- Purchased £165K Worth £115K Rent £460 per month Mortgage £81K. Currently Capital & Interest payments.
Dublin
Apartment. No mortgage. Purchase €230K Worth €260K, Rent €1250 per month. Management approx €2K per year. Nothing to write off against tax but as we make €1500 per month AVCs this rental income is in effect being written off against tax.
Ages of children: 17,15,13
Life insurance: Yes *3, with PPR mortgage, work and a private policy. Past history of illness so spouse keen to keep them all.
What specific question do you have or what issues are of concern to you?
Generally we are in a good position overall but the property mgt takes a lot of my time and effort and increasingly is an aggravation.
We are not extravagant and we manage money tightly, as properties in Northern Ireland require top up with the income not covering expenses and mortgage (Capital * 2 and Interest *3).
The two houses were a bad investment and for several years the negative equity caused a lot of stress. There is the obvious capital loss plus currency loss.
Also increasing expenses due to wear and tear and age of properties etc. Market is not great for selling, in particular the houses which are not in great locations.
I wonder if I should sell the houses at a loss. Then either use these losses against the CGT on the sale of one or both apartments.
If I sold the 3 Northern Ireland properties, I could potentially clear my PPR mortgage and then have more disposable income to enjoy or pay more in AVCs with the obvious tax relief.