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What would ye do?

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  • 06-07-2020 4:13pm
    #1
    Mike3287
    Closed Accounts Posts: 379 ✭✭


    Looking to sell house soon

    Hope after estate agents, solicitors and everything paid will have €180,000 left in cash

    New property will be a mortgage about €600pm x 30 years at 2.28% apr

    Interest on that over 30 years is a about 150pm, €57,000 total

    Considering that it's almost impossible to get evicted in Ireland and I'm a hard decent working person and would clean toilets to pay it and put food on the table, I don't think that will be a problem

    Question is

    Is it better to have €180,000 cash for investment and pay €160pm in interest as punishment.

    Or is better to be mortgage free and not pay that €160pm?

    Seems a bit mad to give the bank all that cash just to save €160pm?

    What ye think?

    What could I invest in with little or no risk?


Comments

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    #2
    krissovo
    Registered Users Posts: 2,645 ✭✭✭krissovo


    The global economy could do anything over the next 12 months so personally I would rather have solid assets right now as cash could devalue overnight. Also your logic is a little off in saying you are only saving 150 per month, you are actually saving 750 per month. Put this money to work in higher risk investments or even private pension would net more for in the long term.

    The only real investment option for little or no risk is state savings. Some pay interest up to 16% but your money is tied up for 10 years to get that return. Other State options to have the cash available pay between 2 and 5% but depending on inflation during the savings period would erode the net gain.


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    #3
    dartboardio
    Registered Users Posts: 2,436 ✭✭✭dartboardio


    Are you basically saying you'll have the opportunity to pay off most of your mortgage? (Sorry, didn't do the full calculations!)

    If so, I'd pay it off or as much as you can pay off in a heartbeat. Sure basically all your income will be 'pocket money' if a large chunk isn't been taken up by the mortgage each month.


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    #4
    Mike3287
    Closed Accounts Posts: 379 ✭✭Mike3287


    dartboardio wrote: »
    Are you basically saying you'll have the opportunity to pay off most of your mortgage? (Sorry, didn't do the full calculations!)

    If so, I'd pay it off or as much as you can pay off in a heartbeat. Sure basically all your income will be 'pocket money' if a large chunk isn't been taken up by the mortgage each month.

    Exactly, I will be able to pay it off with house sale, mortgage free with a bit left that will probably go into new house decorating it or something

    Was thinking of renting house out but reading the horror stories, not a chance.


  • Options
    #5
    Mike3287
    Closed Accounts Posts: 379 ✭✭Mike3287


    krissovo wrote: »
    The global economy could do anything over the next 12 months so personally I would rather have solid assets right now as cash could devalue overnight. Also your logic is a little off in saying you are only saving 150 per month, you are actually saving 750 per month. Put this money to work in higher risk investments or even private pension would net more for in the long term.

    The only real investment option for little or no risk is state savings. Some pay interest up to 16% but your money is tied up for 10 years to get that return. Other State options to have the cash available pay between 2 and 5% but depending on inflation during the savings period would erode the net gain.

    Thanks for the reply Kris, makes alot of sense

    Good point on the €750 saved

    It's a bit sobering that not much investement options exist with little risk.

    Think I will just pay off the mortgage


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