Investing to Cover carehome fees

newjemma
newjemma Posts: 3 Newbie
in Over 50s MoneySaving
My Dad will need to go into a carehome shortly and will be short a small amount each.week.

The Numbers add up and he believes we could Invest his money aboard possibly in property.
To rent out to cover the remaining about of Fees he would have to pay does anyone have any advice on this. or any other options.

We are trying to do this all above aboard and legit. Don't want to be accused of Fraud. I live all over the place .

Comments

  • Keep_pedalling
    Keep_pedalling Posts: 16,587 Forumite
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    That would be absolute madness, foreign property is really high risk, do not even go there.

    What level of assets and income does he have?
  • newjemma
    newjemma Posts: 3 Newbie
    He has about 100K in the Bank and gets just over 400 a Week
  • Biggles
    Biggles Posts: 8,209 Forumite
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    newjemma wrote: »
    He has about 100K in the Bank and gets just over 400 a Week
    With that, and the proceeds from his house sale, he should consider an Immediate Care Needs Annuity. It could pay for his care, inflation-proofed, without the worry of maybe running out of money one day.
  • Keep_pedalling
    Keep_pedalling Posts: 16,587 Forumite
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    Assuming he lives in one of the cheaper areas of the U.K. for residential care, then although his care costs will eat into his savings it is going to take a few years before it drops to the level where the local authority will have to step in to make up the shortfall.

    There are things you can do to maximise the amount his savings earn to preserve them as long as possible without taking high risks. High interest current accounts are just about the safest you can get, and you can get regular income from, slightly more risky peer to peer savings.

    While he is self funding he should be able to get attendance allowance, which is not means tested, so if he does not get that at the moment, apply now.

    If not already done so it would be a good idea to get a lasting power of attorney (LPA) in place providing he still has the mental capacity to do so. If he becomes incapable of managing his financial affairs without one, you will find yourself powerless to help without the expense and delay of going to court to obtain those powers.
  • Keep_pedalling
    Keep_pedalling Posts: 16,587 Forumite
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    Biggles wrote: »
    With that, and the proceeds from his house sale, he should consider an Immediate Care Needs Annuity. It could pay for his care, inflation-proofed, without the worry of maybe running out of money one day.

    Does he actually own a house? If so is his wife still alive and living there?
  • newjemma
    newjemma Posts: 3 Newbie
    edited 14 May 2016 at 3:30PM
    He does not own house he sold it year ago has been renting. I spend a lot of time in North America and Asia. from my experience I could buy something NA and rent it out and with 5% return at least.
    could easily cover the shortfall he has on his care home fees.
  • scotsbob
    scotsbob Posts: 4,632 Forumite
    edited 15 May 2016 at 12:01AM
    Keep_pedalling wrote: »
    That would be absolute madness, foreign property is really high risk, do not even go there.



    Not sure why you would say that. Since retiring eight years ago I have invested in property in Oman and Morocco. Both properties have increased in value and the rental market in Marrakech is producing a yield of 8%


    Closer to home, the property markets in Ireland and Holland are exceptionally strong just now.
  • Biggles
    Biggles Posts: 8,209 Forumite
    Combo Breaker First Post
    newjemma wrote: »
    He does not own house he sold it year ago has been renting. I spend a lot of time in North America and Asia. from my experience I could buy something NA and rent it out and with 5% return at least.
    could easily cover the shortfall he has on his care home fees.
    What with management fees, refurbishment on change of tenants, currency fluctuations etc, I wouldn't want to rely on that slim a margin.

    It's worth at least looking into the annuities; they can be quite reasonably priced, as they take his age and health into account.
  • Keep_pedalling
    Keep_pedalling Posts: 16,587 Forumite
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    newjemma wrote: »
    He does not own house he sold it year ago has been renting. I spend a lot of time in North America and Asia. from my experience I could buy something NA and rent it out and with 5% return at least.
    could easily cover the shortfall he has on his care home fees.

    And if the value of the pound fell dramatically where would that leave you? If 5% is all you need to earn then there are safer ways of doing so that leave your assets liquid, which may well be nessasary if his care requirement increase and costs rise, just ask over on the savings and investments board.

    Do you actually have POA to do this with his money? Even if you do, taking unnessasary risks with it could land you in hot water.
  • PennyForThem_2
    PennyForThem_2 Posts: 1,036 Forumite
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    It is possible you could buy an annuity to cover the costs of healthcare costs, but the term and price would depend on diagnosis and expected life length. However it might be worth exploring.
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