What should I invest in, return to Ireland in 10 years?

High Altitude

Many thanks in advance for any advice; I would be grateful for any sound investment ideas, nothing high risk.

So I'm Irish, a non-resident living abroad (non-EU country). I've a well paid job and have around 500K in an bank account in Ireland (normal low interest savings account), which I've contributed to regularly.

Now 50, and want to retire in Ireland in 10 years or so. Not part of state pension scheme as away most of my working life. Very few financial overheads.

What would you do investment wise in my circumstances?

Ideas I have: buy 2 properties with 70% cash up front and 10 year mortgages, mainly paid off by tenants.

Start Irish pensions+ voluntary contribution to state pension.

I'll go to a financial advisor of course, but wondered if others were previously in my position or are at present and willing to share advice/ideas.

Regards.

Shedite27

Lots of variables a broker will talk to you about, how onld you are, how many years you need to finance for that 500k, how much you need to live on per year. You say you're returning to Ireland, need to buy/rent a house yourself out of that 500k?

Property seems a lot of work for my likiing, but has hard assets if you need to pass on wealth to next of kin. So big benefit there. Couple of properties for 500k, say you get 4k a month rental income, 48k per annum, less tax. But your property will hopefully appreciate too.

Equities/Bonds allow you to draw down some of the capital and get some growth, so probably a better income in your lifetime if you wnat to sped you hard earned cash

Chuckie_Egg

Wouldn't be in favor of property especially rentals. You are not going to be in the country, all it would take is a bad tenant to make your life a complete misery when you are far away from the property. You could go down the route of a management co. to look after them but they are not cheap and you could still end up having to deal with troublesome tenants.
If it was 2 or 3 years ago the prices of property was worth the risk, but I see no value in a lot of property now, you are paying full ask and above (unless you are looking at commercial property, there's still value there).
On top of which there's talks of double property tax being applied to private rental properties in the future.

Atlas_IRL

Wait until market gets better with property and buy 2 rentals and give them to the government for 10/20 years.
https://www.dublincity.ie/residential/housing/i-own-my-home/rent-or-sell-your-property/long-term-leasing-initiative

High Altitude

Thank you for the suggestions, much appreciated.

Buying and renting to the government for 10 years seems a reasonable option, is there any way find out how much rent they would set for different areas of Dublin and different kinds of properties?

I can see the market is overheated at the moment and was going to try to get mortgage approval from my bank and be ready to buy when the situation seems a little better, possibly next year. Then it'll be a choice between buying in cash or getting a 70/30 mortgage or similar (deposit being c70). Still unsure if the money left free from not paying outright in cash and getting a partial 10 year mortgage would earn more invested elsewhere over 10 years than simply paying outright in cash and collecting all income from that point in the near future, then reinvesting all of it in a fund. I see many different opinions about this matter and it is difficult to know what to decide on. I've only started really considering these financial matters recently, but better late than never. As a non-resident Irish citizen I need to find out more about tax relief on paying into a pension fund while abroad.

I need to do it all myself anyway, will be very little gov assistance if any down the line, I acknowledge that.

Any thoughts on these points would be welcomed.

massdebater

Where are you living now and what's your residency status there? Are you a citizen/PR etc?
10 years is a decent length of time and there might be a better opportunity overseas before moving it home

High Altitude

I'm in Vietnam, temporary resident only. Any earnings are best moved out of the country, so no investment opportunities.