Where to put £250,000?

Cyrus

Hey guys,

Bit of background: My grandad had a stroke a couple of months ago and will be moving into a nursing home in the next few weeks. So this will leave his house empty.

What are peolpe's opinion on selling now or keeping hold of the house and renting it out until the market improves?

If we were to sell now what would be the best thing to do with the money? The house has been valued at around 250k. Obviously there's the ISA allowance but that's not much. Any ideas?

atush

this will largely doenond on mmay things you have not told us.

such as does he own outright or is there still a mtg? How good it the property at this moment?

could it be rented in immaculate condition or would you have to spend a lot to get it into renting condition if he has let it go condition-wise.

If it does need investment to get it to selling or renting condiiton is this money available for this purpose? Can he afford to not sell or rent immediately and hold out for prices to improve?

brasso

Cyrus wrote: »

Hey guys,

Bit of background: My grandad had a stroke a couple of months ago and will be moving into a nursing home in the next few weeks. So this will leave his house empty.

What are peolpe's opinion on selling now or keeping hold of the house and renting it out until the market improves?

If we were to sell now what would be the best thing to do with the money? The house has been valued at around 250k. Obviously there's the ISA allowance but that's not much. Any ideas?

The house belongs to your grandfather? What does he want to do with it? Are you saying that the money is needed to pay his nursing home fees?

Sorry, don't mean to sound unhelpful, but maybe you just worded your post in an unsympathetic sort of way! Can you explain a bit better?

poolforever

I'm not sure what the OP isw asking either?

Cyrus

Sorry guys, typing it my phone so trying to keep it short. Yeah he owns it outright, it's in very good condition, won't need any investment to make it suitable for renting. The money wouldn't be required to pay for the nursing home in the short term but perhaps in the long term it would.

Renting it out would be something that my uncle would be responsible for but I think he doesn't realise how much trouble it would be getting everything sorted out to rent and the risks involved. I think what's more likely to happen is they will put it up for sale.

So, I'm looking for a bit of advice in what to do with the money. I'd know what to do if it was just 2500 but 250,000 is way above what I'm used to dealing with.

innovate

Whilst your grandad is alive, nobody can sell his property without his written agreement, or - should he be unable to provide a written agreement - a formal Power Of Attorney.

atush

There are lots of things to do with 250K, but again we know too little about your GF. So he would need to decide to sell or rent (if renting he can use an agent to help at a fee) or he needs to sell and see an IFA.

There are all sorts of investments, incl ones that are set up to pay care fees, and there are cash deposits, bonds, income equity funds etc. A mix of these different things could be the way forwards but it is pointless asking now as it could be 9 months before he gets the money for any sale.

grey_gym_sock

without knowledge of the local property market, it's not possible to say whether keeping the property is likely to be a good investment.

but it's certainly a lot of trouble to let a property.

and there are other perfectly good ways to invest money. and many of them are more flexible if (at a later date) part but not all of the investments need to be cashed in to pay for a nursing home.

Jegersmart

For me this is not where to "put £250k" - this is about looking after my grandfather and doing what is best for him.

In my experience, older people function best in familiar surroundings and I would fight to be able to keep my older relation living in their own home for as long as I could. In this case your GF has had a stroke but is still alive and through treatment and most importantly nutrition he could recover and lead a good quality life for some time yet. It is ABSOLUTELY not on to be considering selling his home at this stage - and in my view not until it becomes absolutely necessary in order to pay for treatments or similar.

All very imho - and best of luck to your GF!

J

Linton

If I was in your situation I would investigate selling now and using some or all of the money to buy a Long Term Care Annuity. This would guarantee the income for however long he lives with no risk that he outlives his resources and would involve no effort or investment responsibility for yourself.

You would need to consult an IFA to determine whether the proposal made financial sense.

I would be very wary of renting the house out - what happens should the income stream stop?

PS I also agree with Jegersmart. My suggestion is based on the assumption that the movement to a nursing home is unavoidable and permanent

Cyrus

innovate wrote: »

Whilst your grandad is alive, nobody can sell his property without his written agreement, or - should he be unable to provide a written agreement - a formal Power Of Attorney.

He's all for selling up of renting, whatever is easiest.