Would there be pitfalls if an 80 year old decided to sell her portfolio and "buy to rent" a property, especially on her death?
2006-09-04 04:14:40 · 8 answers · asked by lottie 3 in Business & Finance ➔ Investing
It would be quite feasible if you did not need a mortgage, but it would be a terrible decision.
First of all, at current property prices I doubt if you would be better off income wise.
Then, if you live in UK, when you sell your shares you will have to pay at least 22% tax on any capital gains exceeding £8,800, And you would have to show the calculations which are a nightmare
But worse of all, you will have all the hassle with the tenants, keeping the property in good repair inside and out, tracing absconding tenants etc. It would tax a 30 yr. old, never mind an 80 yr. old person.
In old age you want some peace and leisure, so keep your shares and if you need more income, rearrange your portfolio towards higher yielding shares. Ask a good stock broker for advice, or I would do that for you, if you wanted to contact me.
2006-09-04 09:45:52 · answer #1 · answered by Anonymous · 1⤊ 0⤋
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2016-10-01 07:23:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With cash it should be no problem ..but no bank will ever give a 80 yr old a mortgage..Only thing is watch out for Browns Interitance tax when u die .
Also if your gonna rent it who will maintain it,collect rents ,sort out troublesome tenants..
Good luck
2006-09-04 04:19:27 · answer #3 · answered by Red 3 · 0⤊ 0⤋
I think it will be hard for an 80 year old to obtain a mortgage on a serious note get it on someone else's name and pay them etc your son or daughter's
2006-09-04 09:09:23 · answer #4 · answered by ALI 1 · 0⤊ 0⤋
If she made this decision upon her death, there would be numerous pitfalls -- like, how would she sign her name? Before her death, it might be okay -- is she an agile plumber/electricial/painter/roofer? etc. etc. etc.?
2006-09-04 04:19:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Don't spend your money. You have worked too hard and too long. Now you can take the opportunity to enjoy life.......travel.......spend time with those you love :-)
You work hard when you are young so later you can just relax and have fun.
2006-09-04 04:34:08 · answer #6 · answered by kawin 1 · 0⤊ 0⤋
I'm not sure she would get a Buy to Let mortgage (or indeed any mortgage) to be honest...
2006-09-04 04:17:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋
it is never to late to invest
2006-09-04 04:20:45 · answer #8 · answered by Anonymous · 0⤊ 0⤋