Selling my fathers bungalow

StarkeyArms

My father has moved to a warden controlled flat and is presently renting out his bungalow. Although he is 80 he is still very fit and wants to sell the house to raise cash for a new car and holidays. The bungalow is worth in the region of £150,000 and my sister & I want him to keep as much of his money as he can. He worked very hard to get to where he is and we want him to enjoy it without paying too much tax etc. Can anyone help us with ideas? Neither my sister and I live near to my dad and we both work full time.

EdInvestor

Does he need income from the money?

How much risk is he prepared to take with investing it?
Would he only want a capital guaranteed savings type product?

Or would he accept some risk to capital in return for a higher return?

StarkeyArms

He doesn't need steady income from the money. I don't think he would be prepared to risk and maybe a capital guaranteed product might be best. I know he wants immediate cash for holidays, car etc. but would need to invest the rest. Although he is still active he needs something uncomplicated which my sister and I can help him with.

Pal

It might be a bit complicated but he might want to consider simply taking out a mortgage which can be paid off with the rental income. Depends on a lot of factors though.

margaretclare

Hi

Forgive me if this sounds a bit simplistic, but why doesn't your Dad simply put the bungalow on the market and sell it?

Renting it out can be fraught with problems and continuing worries for your Dad as a landlord - all kinds of hassles with tenants, tenancy agreements, repairs, maintenance, you name it. If he sold it he's have money in the bank and could then do what he liked with it.

Aunty Margaret

EdInvestor

Maybe the right question to ask is how much does Dad want to raise in terms of a cash lump sump for spending purposes and how much would he then have left to invest for income?

Pal

While the answers provided so far have obviously been fantastic I have copied this thread over to the Silver Savers Board to see if it gets more of a response there.

Hopefully it will give them something to do between knitting and whinging about the "good old days".

Pal - Pensions Bored Guide