just finished mortgage

aluminium

50 years old. 4 older kids living a home (college age).

I had 3 mortgages finish this month. The last few years have been rough money tight etc.,
Having to pay all rent collected direct to the bank and then pay 50% on top of that as tax every year end.

No holidays etc etc. Tenants refusing to pay rent. Sickness etc etc.

now its all over. The property is mine........ Its suddenly worth all the sacrifice.

I have to decide what I do next..............

Happy days....

Cableguy

Hey congrats,
Sounds like a holiday is in order!
Any advice for a first time buyer whos been approved an looking to buy a house?

aluminium

Cableguy wrote: »

Hey congrats,
Sounds like a holiday is in order!
Any advice for a first time buyer whos been approved an looking to buy a house?

AIB are running a series of adverts about people who have just finished paying off their mortgage.
As it is something that is relevant to me, Im drawn to the adverts. The euphoria - not an exageration - better than a two week holiday in Thailand or a trip following Irish football team around europe.

These are the things I gave up to clear this debt. I moved a few times over the years but always kept the existing end of term mortgage the same.
A friend 10 years ago suggested a tracker. I got a 1.2.

These all helped.

However nothing will prepare you for illness or longterm job loss, I have had both. If you miss a monthly payment your credit history is screwed for a few years.

Old codgers are now advising people that they should get used to renting, "Its the new way".

At 50 I not only owe my own home but also 2 rental properties. I could prob., go into semi retirement. I WILL NEVER BORROW AGAIN. other than a small credit union loan to keep my credit rating open.

I intend putting 55% of monthly rental income into credit union and borrow (using the money saved as colateral) to pay the annual tax bil on the properties. I will find a way to offest the interest against my soon to be part time selfemployment tax bill.


Go for a mot=rtgage and get it paid off asap.

neonsofa

Congratulations, what a wonderful feeling it must be for you. Enjoy this period of less stress!! Well done.

Iseedeadpixels

Become semi famous with a ad from the bank :P

jamesthepeach

Congrats op.
Similar situation myself. I'm a little bit younger than you. We got a deal.to pay off morgages this year. Out of two rental properties we decided to sell one and the other one has gone to short term let.
We are now retiring and the arguments are not over money anymore, but over things like, where will we live in the winter and summer and will we buy or rent or sell the ppr and be done with it,.or just downsize it and bank the proceeds too.

All going to be sorted by January anyway and we will be living in Spain at least 9 months of the year, whether by renting or buying. I'm winning that argument though. We will probably just rent in Spain and then come back Ireland for July and August and rent here. Or maybe cruises would be cheaper for the summer

It's a great feeling. And nice to have all positive options instead of the worry of monthly payments and stress of the daily work grind. I used to like that but when I hit 40 I hated even the thoughts of HAVING to work.

I reckon you should cash in at least 75% and leave 25% invested be it property or equities, but make sure you put some of the fruits of your labor into your pocket safely first.

Best of luck to you.
PS. I get this from friends a lot.
"What will you do"?
"Whatever the hell I feel like doing on any given day."

Alkers

aluminium wrote:

I have to decide what I do next..............

Pension?

Baby01032012

aluminium wrote: »

50 years old. 4 older kids living a home (college age).

I had 3 mortgages finish this month. The last few years have been rough money tight etc.,
Having to pay all rent collected direct to the bank and then pay 50% on top of that as tax every year end.

No holidays etc etc. Tenants refusing to pay rent. Sickness etc etc.

now its all over. The property is mine........ Its suddenly worth all the sacrifice.

I have to decide what I do next..............

Happy days....

Congratulations...at least you will have peace of mind now that it will be impossible for your children to get into a similar position where they can take on such level of debt with CBI and government policy.

3 mortgages eh...no mortgage interest now so higher level of tax now unless you invest in EII scheme. Then need to think about will..from a tax point of view...at least with 4 kids and with category 1 threshold CAT shouldn't be too high. Then in 20-30 years you'll may need nursing care and won't qualify for fair deal and all rental income if you still have properties will go towards paying your 1200-1500 a week care bill. At least you'll get tax relief at higher rate on this. Lots to consider.

The_Conductor

aluminium wrote: »

I intend putting 55% of monthly rental income into credit union and borrow (using the money saved as colateral) to pay the annual tax bil on the properties. I will find a way to offest the interest against my soon to be part time selfemployment tax bill.

I'm thrilled for you- and that you have managed to clear your mortgage.

Just a word of warning- if you borrow to pay the Revenue Commissioners (which you could potentially do)- the interest on the money you borrow most certainly is not an allowable expense, under any circumstance- and even mentioning things like this on the internet- is very poor judgement.

You've been very prudent in many choices you've made- don't mess things up over something as stupid as this suggestion.

The_Conductor

The_Conductor wrote: »

............the interest on the money you borrow most certainly is not an allowable expense, under any circumstance- and even mentioning things like this on the internet- is very poor judgement................

........ and it's most definitely not am option to offset it against part time self employment tax bill either.

johnnyskeleton

aluminium wrote: »

I intend putting 55% of monthly rental income into credit union and borrow (using the money saved as colateral) to pay the annual tax bil on the properties. I will find a way to offest the interest against my soon to be part time selfemployment tax bill.

Unfortunately this will not work. Professional landlording is one of a few exceptional circumstances in which interest you pay can be set off against tax. You should really speak to an accountant before trying something like this.

Mrs OBumble

Head for a professional financial advisor. You need to spread your risk now, and invest in something that is not related to property, I'd guess.

Also, make sure you're doing maintenance on those rental properties every year - don't leave issues to build up for times when they're not tenanted.

Lux23

This will probably never be a reality for me because I am paying a third of my wages to someone like you! Sorry, I can't help but be the begrudger!!

magic roundabou

I was able to pay my morgage off when about 7 years ago ... when i went into the bank to do the deed i was expecting bells and whistles but there was nothing ... i hand over my last payment .. and nothing ... it was extremely annoyed .. considering the amount of hoops you have to jump through to get the thing at the start
I have now been able to go part time .. 2/3 days a week .. am single with no kids so all my money is mine
lots of weekends away and still manage the yearly holidays - life is good

pwurple

magic roundabou wrote: »

I was able to pay my morgage off when about 7 years ago ... when i went into the bank to do the deed i was expecting bells and whistles but there was nothing ... i hand over my last payment .. and nothing ... it was extremely annoyed .. considering the amount of hoops you have to jump through to get the thing at the start
I have now been able to go part time .. 2/3 days a week .. am single with no kids so all my money is mine
lots of weekends away and still manage the yearly holidays - life is good

Well, it's not a happy day for the bank, you were an income stream,  and now you're not.

wandatowell

Mrs OBumble wrote: »

Also, make sure you're doing maintenance on those rental properties every year - don't leave issues to build up for times when they're not tenanted.

That'll keep the yearly tax bill down too.

wandatowell

aluminium wrote: »

50 years old. 4 older kids living a home (college age).

I had 3 mortgages finish this month. The last few years have been rough money tight etc.,
Having to pay all rent collected direct to the bank and then pay 50% on top of that as tax every year end.

No holidays etc etc. Tenants refusing to pay rent. Sickness etc etc.

now its all over. The property is mine........ Its suddenly worth all the sacrifice.

I have to decide what I do next..............

Happy days....

I'm delighted for you and your family. I hope you don't get too many cramps in your legs from all the relaxing your gonna be doing. I can just about understand the sacrifices you've made. Paying off 3 mortgages before at 50 is brilliant work. You should be very proud

I own a house that I rent out and I've got a mortgage with my wife on our family home and bar any major upheaval we'll have it paid off before I hit 40.
Occasionally we'll save up a lump sum together and pay a few hundred off the mortgage. Seeing the number go down and down and down.

LimeFruitGum

Well done!

mel123

Absolutely delighted for you OP, love hearing stories like this.

But also sad for myself - with all the crap thats gone on re housing in Ireland, I'll never get that chance

aluminium

Thanks for the comments.

vicwatson

Iseedeadpixels wrote: »

Become semi famous with a ad from the bank :P

"Aluminium has received a gratuity for this ad":D

kyeev

magic roundabou wrote: »

I was able to pay my morgage off when about 7 years ago ... when i went into the bank to do the deed i was expecting bells and whistles but there was nothing ... i hand over my last payment .. and nothing ... it was extremely annoyed .. considering the amount of hoops you have to jump through to get the thing at the start
I have now been able to go part time .. 2/3 days a week .. am single with no kids so all my money is mine
lots of weekends away and still manage the yearly holidays - life is good

Same here. Paid my mortgage off last year, aged 40. Had dumped an extra 6 grand in and went into bank to pay a final paltry sum off with a big goofy smile on my face. I dunno, I was expecting to be congratulated or something aaaaaand nothing, nada...

collie0708

Hoping to be mortgage free myself in the next couple of years, I'm keen on buying a buy to let property but my wife is not keen and would rather just enjoy having the extra disposable income.

Have many if you bought a rental property straight after paying off your mortgages?

kyeev

With no mortgage to pay, I'm saving money without even trying. Plan is to let it accumulate for the next few years and then buy a doer upper in Portugal or Spain in cash.
Banks ain't getting another penny out of me...