Going away....

Rockstar*

Hi, I posted something similar sometime ago but cannot for the life of me find the original post.

Basically Im 24 and settled into current job here in Ireland etc..

Both my parents left me and my family members with a bit of inheritance which I am considering spending most of on travelling the World...Of course I am sure I will never regret this travelling I am very very worried what my brother and sister will think of this...they are both married and settled.

We were each given 20k recently and I planned on going to tour the whole of Africa on 5k with the remainging 15k spent in SEA , Oz and South America.

Theres nothing to stop me going except I am so worried they will dissaprove of me "blowing" my inheritance - By the way I am in the process of buying a house at the moment which will be rented out during this time away.

Can anyone give me advice in how I can approach this matter??

Many thanks

Maggie Simpson

Your money - your life.

However, €20k seems a lot to spend....could you spend €10k (work for a while in Oz) and leave €10k in the bank for when you get back.

karen3212

I agree with previous poster, you could work in between places and save a little extra on the way, also depending on how long it takes, you might get sick of travelling only after a while. I had two friends who after travelling for 6 months couldn't wait to just get their journey finished and really missed out on enjoying the places they went to towards the end.

Try teaching English for a year maybe in China to break it up, or working temporarily in Oz etc.

microgirl

Rockstar* wrote: »

Hi, I posted something similar sometime ago but cannot for the life of me find the original post.

Basically Im 24 and settled into current job here in Ireland etc..

Both my parents left me and my family members with a bit of inheritance which I am considering spending most of on travelling the World...Of course I am sure I will never regret this travelling I am very very worried what my brother and sister will think of this...they are both married and settled.

We were each given 20k recently and I planned on going to tour the whole of Africa on 5k with the remainging 15k spent in SEA , Oz and South America.

Theres nothing to stop me going except I am so worried they will dissaprove of me "blowing" my inheritance - By the way I am in the process of buying a house at the moment which will be rented out during this time away.

Can anyone give me advice in how I can approach this matter??

Many thanks

I really, honestly wouldn't blow the whole thing. Not that I wouldn't travel either, mind, but I wouldn't spend the full €20k. I'm expecting about a €10k windfall sometime in the 6-8 months (not an inheritance) and am intending to use that to travel, and although my travel plans are different to yours I still don't think you'd need the full €20k.

Why do you think you'll need €15k for SEA, Oz and S. Am.? SEA and S. Am. are frighteningly cheap once you're there, and you could work your way around Oz, doing seasonal work like fruit-picking or working with a carnival. Yes, it might be more fun to just have loads of cash and not to care, but it's not absolutely necessary, and having some money still set aside is wise.

Also, regarding buying the property - you do realise you'll be liable for stamp duty on it, right? If you get any rental income on it in the 1st two years (other than rent-a-room scheme) the claw-back jumps in and you have to pay the full stamp duty cost as if you were an investor rather than an owner-occupier.

However, you asked for advice on broaching this with your family - the only advice I can give is *not* to use all of it, and let them see that. And then explain that you know it's risky, you've thought/worried about whether or not you really should do it (even if you haven't) and it's just that you know you will regret it forever if you don't take the opportunity offered you to travel.

But seriously dude, you don't need €20k to do it.

kmick

Only spend half? Do bit of work along the way. Its very difficult to earn 20k...very easy to spend it. So then its a comprimise proposal for your siblings. you say you have considered it and want to spend half.

Rockstar*

Yeah I know it does seem a lot, I had planned on holding back some and any I can but the 15k consisted of 3k for flights and the rest for doing everything I wanted....Other than working in oz - where else could you do something like this? (teaching eng not my thing) ...Being honest I am just not mad on going to oz at all and it is sooo expensive there aswell!

Spud83

Rockstar* wrote: »

Yeah I know it does seem a lot, I had planned on holding back some and any I can but the 15k consisted of 3k for flights and the rest for doing everything I wanted....Other than working in oz - where else could you do something like this? (teaching eng not my thing) ...Being honest I am just not mad on going to oz at all and it is sooo expensive there aswell!

Its not really considering most people go over and do it by working crappy jobs but thats not the point of this thread.

I think I remember your previous thread, and I will give you the same opinion I did then. This money was left to you by your parents to do with what you wish, and what would make you happy. If travelling and the trip will make you happy then I am sure that this what your parents would want you to do.

I cant see your siblings having a problem with this, and if they do then I would just explain to them what I have said. Good luck and enjoy the trip.

biko

True, but there is a life after travelling. For instance a car or a mortgage.
Leave a little something behind so that when you return you have enough funds to get you by before you find a job etcetera.

Not only is working overseas good to keep you in the black, it also gives you friends and local knowledge beyond touristy stuff.

omb0wyn5ehpij9

Maggie Simpson wrote: »

Your money - your life.

However, €20k seems a lot to spend....could you spend €10k (work for a while in Oz) and leave €10k in the bank for when you get back.

Good advice and if i was in your position, that is what i would do

WindSock

Don't have your heart set on spending the whole 20k as if it is a goal or something. Try and make do with as little as possible, because if you know you have it there to spend you will end up just wasting it.
From my experience with travelling doing the SEAOZNZ route, I often found when I was frugal and did the cheaper things, I ended up having much more fun. That's the difference between travelling and holidaying. It's nice to splash out once in a while. Plus you can get the Working visas for Oz and NZ, so it doesn't all have to be outgoings.


Are you the guy who wanted to sail on the lovely pirate ship?

speaktofrank

If I was in that position I would...
1. Buy the house.
2. Live there for the next two years
3. Once the two years are over rent it out and start making your travel plans.

Problem solved, while you are travelling you will be getting money into your account from the rent. 3-4 bedroom house 400 (monthly rent x3 tenants=1200 1200x12 months=14000K
think 14K should be enough to travel and you would still have your original 20k.

mikewest

This is coming from someone who is absolutely rubbish at anything financial except spending money so take with a pinch of salt.

1. Do the travelling with only half the money as many other posters are saying. But do the travelling now because there is always some excuse for not doing it later and the regrets are terrible.

2. Get work on your travels. The experiences may well change your outlook and ambitions in life.

3 Don't buy that house now. Have you not seen the way property prices are dropping. You will save a hell of a lot more than 20k if you delay buying.

4 The heck with your siblings thoughts on what you want to do. Its your life not theirs, something I should have realised myself years ago. Get their advice for sure but you don't have to take it cause it's only advice after all.

And finally apply the happiness test to whatever you decide to do. If you ain't happy its the wrong decision for you.

Rockstar*

Ha Windstock yes you are dead right thats me! The ship began its journey on 24th May and is actually stopping in Cork in a months time believe it or not...To be honest after speaking to people on the forum I decided against it which is pretty amazing considering I had been planning it for the past 3/4 years or more!

Anyway theres no chance I am waiting another 2 years before I go , I will need to have a think about that as paying stamp duty is the last thing I'd need and this is the first time I have been aware of the rule - its a pity I cant buy the house when I come home but its a very complicated situation and house has to be bought within the next few months!

Thanks for the advice - I suppose working while away would be a good idea

karen3212

Op I assume you've had a look at USIT, they might have ideas for you about working while away: maybe you can get bed and board, and get to see a bit more of the culture of the contries you're going to.

Don't wait too long to travel though, as you get older sometimes the genies in your head start telling you various places are too dangerous(because the news only tells us about the bad things)

estar

then you wont feel like your blowing it all on yourself

give five grand away.

save five grand for a rainy day.

blow ten grand.

DD

me I would save them for a new house

Maggie Simpson

Rockstar* wrote: »

Anyway theres no chance I am waiting another 2 years before I go , I will need to have a think about that as paying stamp duty is the last thing I'd need and this is the first time I have been aware of the rule - its a pity I cant buy the house when I come home but its a very complicated situation and house has to be bought within the next few months!

Get onto Revenue and find out how much stamp duty you'd have to pay if you rent the house out while you're away. E.g. if the house is €300k, you'd have to pay over €12k stamp duty if you rent it out......but I dunno if this would apply if you rented it for only 2 years. That is to say, you would be classed as in investor, but for how long? I'm not 100% on these issues, so suggest you go over to askaboutmoney.com and post there also. If you really really HAVE to buy this house, find out stamp duty implications FIRST. Also, could you not save/invest instead of buying a hoiuse now & buy when you come back?

Also, I assume you will be getting a mortgage? Will the rent cover the entire mortgage?

Sorry for long post - PM me if you want.

camouflage

Why don't you buy the house after you have travelled around the world? What point is there to buy a house and then immediately rent it out?

I say:
- Do not buy the house yet
- Save at least 1/4 of the money, do NOT spend it all. You'll regret it later.
- Work while you're in Oz. If you do not want to do this, don't stay there as long as you've originally planned.

Simple as that! :cool:

Edit. I see that the situation with the house is complicated. Why don't you just let this house pass and buy another one when you get back?

Irishcrx

Hi mate,

I'm in a similar situation to yourself at the moment, I have the choice to either buy half a share in a house and own it, live there etc or take the 170,000 for my share and go travelling. My head has been wrecked weighing each against each other but I finally decided I can't put my hopes on hold and my long term future can wait so I am.

*Taking the money.
*Clearing all my debts.
*Taking 20k out and travelling OZ, new zealand, US and a few other places for a year or so.
*Investing everything I have left over so about 140k and when the time comes i'll use that as a deposit on a house.

Reason - I know if I take the house now I will never travel and I know if I travel I'll come back and have a decent landing to buy another house in the future.

DD

Irishcrx wrote: »

Hi mate,

I'm in a similar situation to yourself at the moment, I have the choice to either buy half a share in a house and own it, live there etc or take the 170,000 for my share and go travelling. My head has been wrecked weighing each against each other but I finally decided I can't put my hopes on hold and my long term future can wait so I am.

*Taking the money.
*Clearing all my debts.
*Taking 20k out and travelling OZ, new zealand, US and a few other places for a year or so.
*Investing everything I have left over so about 140k and when the time comes i'll use that as a deposit on a house.

Reason - I know if I take the house now I will never travel and I know if I travel I'll come back and have a decent landing to buy another house in the future.

It is easier for you to say it. Doesn't matter too much if we travel or not, does not affect you too much ..I mean the money. So you can travel and come back and start looking for a house as well. If I'd have these money now I would get the second house, I'd change my car and I'd book a trip every month to another destination. I can rent the second house and have a nice amount from the rent too every month.

Pigletlover

estar wrote: »

then you wont feel like your blowing it all on yourself

give five grand away.

save five grand for a rainy day.

blow ten grand.

I don't see what giving 5k to charity will achieve, the OP is worried that his brother and sister won't want him to 'blow' his inhertance on travelling, he doesn't actually feel guilty about spending the money (nor should he).

OP, I'd suggest doing what other posters have said - take some of the money and travel, but keep some for when you get home. Assuming Maggie Simpson's calculations are correct, 12k is a lot to spend on stamp duty. If you can't leave the purchase of the house until you get back from your travels would you be able to leave the house idle? Maybe defer the first few months of your mortgage repayments or look at interest only repayments?

It's your money, so it's up to you how to spend it, I'm sure your brother and sister would just want for you to be happy, while they may not seem too keen on you spending it on travelling around the world at first, when they see it's what you really want I'm sure they'll come around.