£200 000 and no idea what to do with it please can you advise?

Helen27

Through the sale of an inheritance property I have this money.
I am over 60 missed the boat for purchasing a property or have I.
I currently rent on a long term basis at £700 pm which is hopefully secure for as long as I want to rent.
I'm not sure what my options are but these are my thoughts that I need help with

If I can find a property for 200 000 do I buy it outright so I have no future rent to pay?

Do I stay where I am and pay off my car and enjoy the money
And forever rent?

Am I too old for shared ownership and will the monthly outlay be more than my rent .. a consideration for when I retire in 2032 

I have done a mortgage in principle for 100 000 with only nationwide but it stopped the application. My thought was if I put down 135000 on a one bed house mortgage the 100 000 I'd still have 100 000 to pay off car get the house 100 % in condition for retirement years
and have a bit over as a nest egg for a few treats and holidays while I'm fit.

Do I just spend it as I wish

Do I invest it for and income but with who and how and how much

Do I split it between my two children now to help them on the property ladder

Do I buy a caravan to live in ...bigger than a poky 1 bed flat

Could I get a buy to let or invest in a business or buy a little business give up my job to run that

It's really causing me such anxiety as when it's gone it's gone.

I will only have a state pension plus a 60000 pot I can take 25% from in cash.

I just have no idea but I would like to move to another county to be closer to fam and friend's  but the rentals there are £1400pm and above  for a 2 bed double what I'm paying now.And I'd have to give up my job and get another or go PT.

And help comments suggestions or pointing me in the right direction I'd be greatful for. Thank you

Stubod

https://www.youtube.com/watch?v=OtB4gmSi35k

Helen27

Wow I wasn't expecting that! Brilliant food for thought Thank you so much !

Tabieth

I’m not sure why you think you’ve missed the boat to buy? 

It’s really difficult to advise as we don’t know your financial circumstances, income / any debts etc.. Saying that, I’d pay off any debts (not student loans). Then buy - a house with a large deposit and a manageable mortgage until retirement. I’d leave some recover for life expenses, treats, contingency etc.  

Albermarle

The problem with renting is that you have a lack of security. New legislation will make it more difficult for landlords to evict tenants, but it could still happen.

Do I invest it for and income but with who and how and how much.
That can not be answered in a couple of lines. If you go down this route, you would be better to pose the question in this forum.
Savings & investments — MoneySavingExpert Forum

Could I get a buy to let or invest in a business or buy a little business give up my job to run that

New taxes and legislation have made BTL a less profitable business than it used to be, especially if you only own one and have no experience of being a landlord.

I will only have a state pension plus a 60000 pot I can take 25% from in cash.

You can take it all as cash if you want, but only 25% will be tax free. The other 75% will be taxable, but by how much depends on your other income and whether you take it all in the same tax year ( not advisable normally).
If it is an older pension you might be better off transferring it to a new one, which is easier than you might think.
This forum can be informative.
Pensions, annuities & retirement planning — MoneySavingExpert Forum

BungalowBel

Without knowing other details about your circumstances I would say, buy a property to live in and be rent and mortgage free, every time.  Then again, I have never privately rented so may be missing some advantage over buying, but I don't think so.

Stubod

In general buying will always be more cost effective than renting, particularly if you have a large lump sum and don't need much / any mortgage. 

You also get peace of mind knowing you can't be evicted, and no unpredictable year on year rent increases.

RHemmings

Helen27 said:

Through the sale of an inheritance property I have this money.
I am over 60 missed the boat for purchasing a property or have I.
I currently rent on a long term basis at £700 pm which is hopefully secure for as long as I want to rent.
I'm not sure what my options are but these are my thoughts that I need help with

If I can find a property for 200 000 do I buy it outright so I have no future rent to pay?

I was in a similar situation. At nearly 60 I was going to buy my first ever property. Then I received an inheritance. So, I bought for cash and now don't pay any rent and have no mortgage. I didn't have a secure relatively low cost rent. I did have low cost rent for a long time before that, but had recently moved out into market rents a year and a bit before I bought. 

All I can say is: I very much like having a house that is all ours, and no rent to pay. So far over about 18 months I have paid out about £400 in total that would have been the responsibility of the landlord if I was still renting. 

£200k might or might not be enough, depending on your property needs and where you are in the country. Where would you like to live? 

Cairnpapple

Maybe decide to spend a few months looking into properties just to get a feel for the market? It sounds like you have a good rental for now so no immediate hurry to take action. Savings rates are above inflation so you could split the money into 3 good savings accounts to stay under the £85k FSCS protected limit and it would just sit there till you're ready to make a decision. 

The UK personal finance subreddit has a nice guide to coming into a lump sum of money at  https://ukpersonal.finance/lump-sum/

It sounds like giving money to your children probably isn't the best option right now as you may well need the money for your future, whether you buy or rent. 

FreeBear

Helen27 said: Do I buy a caravan to live in ...bigger than a poky 1 bed flat

If you buy a caravan, where do you put it ?

Most (all ?) permanent caravan pitches limit the amount of time you can live there in a year. Electricity connection will be on a business rate, so could be a lot more expensive than domestic rates. Caravans can be cold, damp, and miserable during the winter months. If you buy new, they just depreciate in value. And to cap it off, if the site owners sell up or go bankrupt, you may have to move with minimal notice.

Caravans should only really be used as a last resort.

Helen27

Thank you for the comments I am taking notes following up considering all.
Purchasing a home to be rent free in the latter years seems sensible until I'm told it will be taken away to pay for old age care when I need it but I'm not sure on that as fact.