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

FreeBear

Helen27 said:

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.

One in ten people may end up in a care home to see out their final years. If/when this happens, the owner is unlikely to return to the property. So having it sold to fund care is not going to be a major issue.

Albermarle

Helen27 said:

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.

If you need expensive care in a care home, then the local authority will only pay for it when your assets ( including your home) are below  a certain level. So it is possible that the house might have to be sold, to pay for that.
However;
1) The majority of old people never go into a care home.
2) If you need care at home, which is more likely, the value of the home is not counted.

For me the security of having your own home, would outweigh the small chance of having to use it to fund care.

Tabieth

I completely agree with the last two posts. I would not let the possibility that you may need to sell in the future to fund a care home place put you off. The advantages of owning outright are huge, this risk is far smaller. 

RHemmings

Stubod said:

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

I think this is the best simple explanation of this trade-off that I have ever seen. 

lincroft1710

FreeBear said:

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.

Proper park homes are designed for all year round living, are properly heated and insulated, double glazed, often have en suites, well furnished and are not damp. The parks they are sited on are licensed for all year round living and there is security of tenure. HOWEVER, brand new sited park homes are not cheap (can easily be in excess of £200K, park rules may be restrictive and pitch rents also aren't cheap 

horsewithnoname

RHemmings said:

Stubod said:

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

I think this is the best simple explanation of this trade-off that I have ever seen. 

What a sensible young man. Absolutely right, a home is a home, it’s not a bloody investment.