Where to put 55K?

[MagicMac]

My partner and I are renting a house off my auntie for a very reasonable sum. My partner recently sold a house she owned and after paying off her loan, solicitors fees etc we've about 55K left. Anyone any ideas on where we should put it? Been looking at the different types of deposit accounts but unsure as where to go. We don't want to go for a mortgage yet because the house we're renting may or may not be left to me. If we go ahead with a mortgage I don't want to run the risk of losing my claim on this house, partly why my partner sold her house.

That being said its not for definite that this house will be mine so in case we decide to go for a mortgage we'd need access to the money which we'd also be adding to every month(800 euro or so)

Can anyone advise me? I'm at my wits end. Any help would be very much appreciated.

 

[Boyd]

Why you at wits end?! I can think of worse issues.

If you need access then it should be in instant access deposit account. You can add monthly to this or open separate regular saver about.

 

[noproblem]

Why don't you ask your auntie to sell you "an interest" in the house? She may need some money, do some travelling, etc and, I'm assuming she doesn't have a mortgage. You might also find out where you stand in the pecking order, that's if she hasn't left it to the Dogs and Cats home.

 

[MrEarl]

Why don't you ask your auntie to sell you "an interest" in the house? ....

Even with very best intentions all round, I would stay a million miles away from an arrangement like that.

Considerations such as the following would support my thinking:

- the true value of the property and what might be an appropriate payment for "part" of the house now, what the future price of the remainder of the house might be (if not left in a future will), what happens if the "tenants" cannot pay the remainder at some future point in time when the aunt needs further funds perhaps.

- who else might have a vested interest in the house (directly, or indirectly) and object to an initial arrangement, or later come back and challenge the arrangement through the courts, perhaps claiming the aunt was taken advantage of in some manner etc.

- risk of later dispute between the aunt and "tenants" leading to daily difficulties on trival matters or worse yet, a full scale legal battle if things got completely out of hand, who pays what percentage of the property tax, water bills etc.

....The list goes on and on.

 

[PGF2016]

You can't tie up your money for a long period so you should probably look for the best rates in each of the banks.
Search online for the highest interest rate deposit account that you can easily access and put the 55k into that (maybe Rabo 90 day notice account at 1.45%).
Search for the highest interest rate regular saver account and put the 800 euro per month savings into that (KBC or EBS might be the best option for this at 3%).

 

[moneybox]

I'm at my wits end. Any help would be very much appreciated.

You dont know how lucky you are, cheap rent and 50 grand in the bank, many would be happy to be in your shoes. Interest rates are abysmal right now, that plus the high dirt tax means you will get very poor return for your savings.