Best investment for OAP after house sale

ManofLeisure_2

OP, you haven't said where you wish to travel to, but if it were in the UK maybe you could consider becoming a House-Sitter. My neighbour employs one for 3 - 4 mths when he visits his home in the USA. It seems to work well as his cats are cared for, and the Sitter has a lovely home for a few months where everything is free.

Then of course there is the option of a home swap. I did this when my kids were younger and it worked well. We enjoyed 3 weeks in California for very little money . Didn't really want to leave - the neighbours there were a lot better than mine lol. This holiday would have cost a bomb with 4 kids in tow .

Both suggestions in turn mean that you could perhaps fulfil your yearning for travel and yet not have to sell-up, or have the bother of selling-up and finding somewhere else. Anyway, more food for thought I hope

badger09

whitejohn wrote: »

Looks like you need direct debits too. Have plenty now but maybe not when I sell up, apart from the mobile.

Santander only require that DDs are 'Active'. They don't have to be ones that are paid every month; quarterly or even annually will do

Obviously the ones which pay cashback (council tax, utilities, mobile etc) are the best ones to have as you can easily cover the monthly £2 fee with the cashback.

However, if you really won't have any of these when you go off travelling, it is very easy to set some up and there is lots of information on the forum

My ex husband took slightly early retirement about 5 years ago, bought a huge new Hymer something or other and with his 2nd wife, has spent the last 5 years travelling around Europe; winter in the south and summer in the north. They absolutely love it but had previously spent many holidays doing the same thing but in rented motorhomes so knew what to expect. I don't think its the ideal life for everyone though, so maybe hire one first before committing a huge chunk of your capital?

jamesd

whitejohn wrote: »

Will also keep an eye on the flats too, probably easier to shop around and get a good deal as a cash buyer than to start renovating things and getting stressed up.

Probably is easier that way. You can also deliberately shop for places that need renovating so you might make a relatively easy gain that way.

You can find similar deals in the non-retirement searches and the less restricted resale market for those might make them more appealing if looking for a profit. Depends what you want in the way of services. Services for over-50/55/60/60 places vary a lot, down to nothing at all being apparent in some park homes.

One way to deal with charge on a retirement place you won't be using is to rent it out so the tenant pays.

Caravan and house-sitting might work well as an income stream, since you could to it almost anywhere that has suitable parking.

kidmugsy

whitejohn wrote: »

Pension wise, I can see the point in deferring but not 100% sure it's that effective, if I defer and lose 3 years pension then that loss needs to be recovered before I start to benefit from the increase?

Yes, you need to survive for ten years after restarting to break even. Thereafter you're in profit for the rest of your days, without the hassle of investment management, or the worries.

whitejohn wrote: »

I think overall, I like the building plot idea the best if it would work, any comments on this idea please? I'm very technical and good at DIY etc.... so I feel more confident with this type of plan.

Well, if you have a competitive advantage, you must consider using it. You may well do yourself a good turn and you will also be doing everyone else a service too, in the long term. But I'd have thought that doing up an existing property might be much less risky than building a new one. You could work on it in the summer and drive off to the south of Spain for the winter. Wait for the referendum: you might find that cottages in beautiful places in Scotland will be going for a song.

Just remember to drive that motorhome often enough, and far enough, to keep it in good nick.


AFTERTHOUGHT. There are, I believe, universities that will rent property from you to sub-let to students. That way the landlord gets a respectable tenant - the university - and the guarantee of the rent arriving. If the university wanted the property for, say, nine months of the year, there again is the chance for you to spend summer here, and winter in Spain.

whitejohn

ManofLeisure wrote: »

OP, you haven't said where you wish to travel to, but if it were in the UK maybe you could consider becoming a House-Sitter. My neighbour employs one for 3 - 4 mths when he visits his home in the USA. It seems to work well as his cats are cared for, and the Sitter has a lovely home for a few months where everything is free.

Then of course there is the option of a home swap. I did this when my kids were younger and it worked well. We enjoyed 3 weeks in California for very little money . Didn't really want to leave - the neighbours there were a lot better than mine lol. This holiday would have cost a bomb with 4 kids in tow .

Both suggestions in turn mean that you could perhaps fulfil your yearning for travel and yet not have to sell-up, or have the bother of selling-up and finding somewhere else. Anyway, more food for thought I hope

Thanks for the idea, I may consider the first one.

whitejohn

badger09 wrote: »

Santander only require that DDs are 'Active'. They don't have to be ones that are paid every month; quarterly or even annually will do

Obviously the ones which pay cashback (council tax, utilities, mobile etc) are the best ones to have as you can easily cover the monthly £2 fee with the cashback.

However, if you really won't have any of these when you go off travelling, it is very easy to set some up and there is lots of information on the forum

My ex husband took slightly early retirement about 5 years ago, bought a huge new Hymer something or other and with his 2nd wife, has spent the last 5 years travelling around Europe; winter in the south and summer in the north. They absolutely love it but had previously spent many holidays doing the same thing but in rented motorhomes so knew what to expect. I don't think its the ideal life for everyone though, so maybe hire one first before committing a huge chunk of your capital?

Thanks, that's very interesting about the direct debits. I've already done a bit in my standard van with no comforts so I'll have no problems in a high quality motorhome. Also bought a caravan to do a fair bit until I get the money from the house. Biggest problem is finding someone to do it with!

whitejohn

kidmugsy wrote: »

Yes, you need to survive for ten years after restarting to break even. Thereafter you're in profit for the rest of your days, without the hassle of investment management, or the worries.



Well, if you have a competitive advantage, you must consider using it. You may well do yourself a good turn and you will also be doing everyone else a service too, in the long term. But I'd have thought that doing up an existing property might be much less risky than building a new one. You could work on it in the summer and drive off to the south of Spain for the winter. Wait for the referendum: you might find that cottages in beautiful places in Scotland will be going for a song.

Just remember to drive that motorhome often enough, and far enough, to keep it in good nick.


AFTERTHOUGHT. There are, I believe, universities that will rent property from you to sub-let to students. That way the landlord gets a respectable tenant - the university - and the guarantee of the rent arriving. If the university wanted the property for, say, nine months of the year, there again is the chance for you to spend summer here, and winter in Spain.

Thank you, that's very interesting about homes in Scotland as it does appeal to me and I'm currently looking. I'm not sure why house prices would change but I can imagine that there may be some opportunities there.
I know exactly what you mean about keeping things running, it will be my main transport so every day in fact.
Regarding student flats, I did see an estate agent offering a guaranteed return of 8% PA over 3 years for investing in new build accommodation very close to Leeds Uni. I could see how they may be able to guarantee the 8% but was unsure about getting back the initial outlay of say £120,000, would that be guaranteed I wondered.

Bettie

bowlhead99 wrote: »

If 3 years of deferral sounds like too much, you could always just do one or two. Or, if you defer and then decide you don't actually want to risk sacrificing the cash in pursuit of getting paid a higher figure for a long time in future (e.g. if you had health concerns) there is an option to get paid it back in a lump sum with a bit of interest. However, that would push up your income in the year you took the lump sum and make you a bit worse off if it puts you in a higher tax bracket..

I retire soon and have decided to take a lump sum and I was told ( not officially) that the tax due will be in whatever bracket you are paying in at the time , also that you can defer the lump sum to another tax year which may be more beneficial. I won't be paying tax in a couple of years time so my lump sum will be tax free ( hopefully) I need to confirm all this before making my final decision

jamesd

You're right, the lump sum is all taxed at the marginal rate you're already at, it isn't just added to your taxable income.

kidmugsy

jamesd wrote: »

You're right, the lump sum is all taxed at the marginal rate you're already at, it isn't just added to your taxable income.

What if I made an EIS investment to make myself a non-taxpayer in the year I took the lump sum? Would that work, or run foul of any rule?