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14-09-2018, 14:59   #16
pwurple
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What's the mortgage repayment? You can write off 75% of the mortgage interest also. 
I'd think 840 a year for repairs and insurance is low, based on my own experience.
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14-09-2018, 15:08   #17
Gentleman Off The Pitch
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You seem to be asking the right sort of questions and weighing things up properly.

If I'm giving my own opinion - I'd sell. If you're intending to buy/build another home, then you're going to have all your wealth in property and be very exposed to the Irish property market. Diversification into other asset classes would be prudent. I'd also utilise the tax benefits of a pension, both in terms of the tax-free lump sum you can take at retirement and the amount you're going to be able to draw down at 20% income tax versus paying 40% income tax on with the rental income. You'd be able to build a fairly decent model of the monetary differences in a spreadsheet.
Appreciate the advice. I need to look into that side of things further. Is, as mentioned earlier, looking at what size of a pension I would need to get the equivalent monthly income from the pension that I get at the moment in rental income (and factoring in the lump sum that I can draw down) a good starting point? Sorry if this seems a stupid question!
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14-09-2018, 15:10   #18
Gentleman Off The Pitch
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What's the mortgage repayment? You can write off 75% of the mortgage interest also. 
I'd think 840 a year for repairs and insurance is low, based on my own experience.
At the moment mortgage repayments are 1020. The insurance and repairs figure I've given could be on the low side alright, it was an estimate. I haven't had major bills really, but this year already there have been some larger repair bills. I suppose this is due to the apartment getting to the age where things start to go wrong
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14-09-2018, 15:15   #19
Amirani
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Appreciate the advice. I need to look into that side of things further. Is, as mentioned earlier, looking at what size of a pension I would need to get the equivalent monthly income from the pension that I get at the moment in rental income (and factoring in the lump sum that I can draw down) a good starting point? Sorry if this seems a stupid question!
You get €350 per month in net income from owning the property (this may change in retirement, as you may pay tax at the lower rate). You could probably match this amount in an annuity if you had a pension pot of about €100k (today's value, need to adjust for inflation), and that's ignoring the lump sum.
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