Holiday Let Investment

Bassetlaw_Badger

Hi MSE forum folks,

Can I borrow your collective ear?

I'm acting as POA for my father, who is in long term care currently funded by CHC.

I have been letting out his property as an Airbnb and it's doing really well, not making masses of money but enough to pay for modernising it a bit in case dad loses his funding and we need to sell.

He now has a bit of capital and I need to invest it as best I can, again in case dad needs it. But I also need to be able to get at it if we need to.

I was thinking about purchasing a small flat at The Bay in Filey. Have any of you done this for investment reasons? Was it a good idea? If I need to sell I can have a deferred payment........

I'd like to (and, as his POA have to) invest it in something dad would have wanted, and I feel this would have suited him well.

All searches on t'internet have drawn a blank.

Am also thinking of going to A Place in the Sun live next week to see if anywhere overseas might be viable.

Would appreciate any advice.

Many thanks.

Thrugelmir

For whose benefit would an overseas holiday let be for? Hardly a liquid investment.

Bassetlaw_Badger

Nobody's I suppose, just saw that his money would buy more property overseas than in this country and wondered if it would generate a decent yield for him........

[Deleted User]

Property is the least liquid investment vehicle so if your dad needs access to the money quickly it isn’t the right choice for him. As POA you need to act in your dad’s best interests rather than doing what you think he would have liked to do if he was in good health.

Bassetlaw_Badger

Yes, you're right. Maybe I should have worded that better......

So, hypothetically speaking, what would you do to maximise return to fund care?.

I have no idea what to do for the best. I've spoken with two IFAs and both wanted me to sell his property and buy a care needs annuity..........

Thrugelmir

Bassetlaw_Badger wrote: »

I have no idea what to do for the best. I've spoken with two IFAs and both wanted me to sell his property and buy a care needs annuity..........

You have a duty of care for your father. Decisions made should err on the side of caution.

00ec25

your posts suggest you have more of an eye on your inheritance than on the needs of your father

as POA, this is your legal duty (although I accept that chances of you being subject to legal action for maladministration is slim)

You have a duty of care for your father. Decisions made should err on the side of caution

Bassetlaw_Badger

I have long since realised that I will not inherit from my parents. However, I am concerned that, once his estate runs out (2.5 years appriximately), I may have to top up his care from my own pocket. Which I cant really do. I took a four year work break to care for him and will be playing catch up for some time.

Your comments are, although probably fair from where you stand, hurtful.

AnotherJoe

Sounds like a bonkers idea, irrespective if there will be long term profit there are lots of startup costs (SDLT, extra SDLT, agents fees, refurbishment/furniture, travel, whatever) that will take time to recover, does your dad have that time, both medically and also, see below, before his cash runs out ?
And, as said re liquidity, if dad needs cash to pay for the next few months costs and it takes a year to sell the place to release it, or you need to drop the price big time to get a quick sale, how is that in his interests?
You also wrote

once his estate runs out (2.5 years approximately)

- by this i presume you mean his cash, so you will need to begin liquidating his assets to release more so making all those expenses to start a new business that you then shut down to release equity doesn't seem like a good plan.

onwards&upwards

Bassetlaw_Badger wrote: »

I've spoken with two IFAs and both wanted me to sell his property and buy a care needs annuity..........

That sounds highly sensible, why not do this?