Couple 70s, renting, with €1.4m to invest

G

Gabbo23

Registered User
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Hi

An advanced couple in their early 70s decided to sell their PPR and sell up and trade down, realising about 1.4M. They then decided not to buy but are happy in a long term rental. They want a zero hassle investment for the equity? Not property. Any thought please?
 
Gabbo23 said:
They then decided not to buy but are happy in a long term rental.
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Not the question you asked but I think they’d be mad to rent at that age if they can afford not to.

They won’t run out of money to pay rent but are at the whim of a landlord who can terminate the tenancy for a variety of reasons.

No one needs that kind of uncertainty so late in life.

Gabbo23 said:
They want a zero hassle investment for the equity?
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Do they have kids who they want to inherit it?
 
Assume, if you will, that whims are not the issue. And secondly yes kids will want to inherit
 
If fair deal would apply, is it more favourable to have a v expensive ppr over cash ?

And although adult offspring expect to inherit, is the view of the parents aligned to this? Is there any scope for them to start using the 3k gift allowance to pass on some now that it's not tied up in their ppr?

100% regardless I would advise them to buy their own home. At this age I would only not buy if I had guaranteed right of residence elsewhere. Renting will not give them this.
 
What other income, assets, savings, debts, etc. do they have?

Probably needs a Money Makeover to get useful feedback...

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Gabbo23 said:
They then decided not to buy but are happy in a long term rental. They want a zero hassle investment for the equity?
Click to expand...

This is the problem.

There is no investment option for them which is risk-free.

They can put the money on deposit and it could be wiped out by inflation. One will probably live 20 years and so it could hit in that time. One will probably end up in a nursing home and as they have cash, they will have to pay for it themselves.

€1.4m is a lot of money, but there is a risk, although small, that it could run out.

They should invest the money in equities as when one of them dies, their inherent Capital Gains will disappear.

But it's absolutely clear that with that amount of money, they should buy a home and live in it.

Gabbo23 said:
are happy in a long term rental.
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I presume that they are renting from a child or relation where they have security of tenure. Otherwise, they could be asked to leave which would be even more disruptive as they get older.
 
This all sounds complicated. Is there a trusted Financial Advisor that the majority recommend?
 
Gabbo23 said:
This all sounds complicated. Is there a trusted Financial Advisor that the majority recommend?
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I don't think that it's necessarily that complicated.
Although, as I said above, we may not have all relevant info yet.
Why not first do a Money Makeover post?
Then, if necessary, talk to an independent financial advisor forearmed with the feedback from the Askaboutmoney community.

PPR Equity Release, what to do

Hi An advanced couple in their early 70s decided to sell their PPR and sell up and trade down, realising about 1.4M. They then decided not to buy but are happy in a long term rental. They want a zero hassle investment for the equity? Not property. Any thought please?
www.askaboutmoney.com
 
Why would someone do this?
 
Gordon Gekko said:
Why would someone do this?
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I would guess that they found an arrangement that gives them a long term lease that allows them to stay there long term. They likely decided having a landlord deal with issues is preferable to them being responsible if they bought a home. That type of lease agreement sounds unusual in Ireland, but (assuming they have it) I can understand the appeal.
 
Long term renting kinda goes against the grain here. We don’t trust landlords.
And lately small landlords are getting out, many people see letting as temporary thing until their kids start college in that town etc.

But surely the big corporate landlords aren’t likely to chuck you out for no good reason? Would that be more secure?
 
I wouldn't worry about the Landlord. Once you sign the lease you are in a very powerful position. The state will protect you no end due to our history
 
Mullsafin said:
I wouldn't worry about the Landlord. Once you sign the lease you are in a very powerful position. The state will protect you no end due to our history
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Only I suppose though if you want to dig your heels in and not leave! Who has the appetite for that in their 70s/80s.

I had neighbours for 10 yrs with same plan, they sold house, moved to town and rented and decided to keep their money for their kids, had good pensions so could easily pay rent but didn't want hassle of home ownership. In year 11 with both of them approaching 80 landlord gave them notice as wanted to move back in himself (in theory). Major upset and hassle for them, they got the correct notice etc but they still had to move and had become quite happy in the neighbourhood not to mention the shortage of rental properties that suited them at their age.
 
Absolutely but the Notice of Termination would mean very little. The eventual RTB Determination Order wouldn't be enforceable. The Dsitrict Court would issue an eventual court order which would mean something but still not there. The Sheriff would call to the door and due to their age not conduct their duty.
 
We are assuming its a non family member who owns the property this couple are living in.

They could well be in an annex / separate building to say a son or daughters family home.

OP has made it clear that accomodation is taken care of.
 
But as I say who wants that hassle or something like that hanging over you especially at nearly 80! I wouldn't be up for that caper now and I'm a lot younger than them.

I know OP in this case is taken care of, this is just a sort of side discussion
 
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