I am acting as Attorney for my mum who has dementia. She has cash assets of approx £200k (some of which is currently tied) and a house worth, at best, £120-150k. Care home fees around £26k per year of which I need to plug as much shortfall as possible - around £12k.
House will rent for around £6k per annum, assuming it is let for 10 months a year and it needs no more than £1k in maintenance. It will make a loss for the first 12 months rental as it is stuck in the 70s and needs some work. I guess some tax may need to be paid on profit.
Initial, hurried meeting with an advisor was to sell house as cash will give me more return than renting it. I feel uncomfortable with that (although didn’t challenge at the time cos we were so short on time) and was always led to believe property is about as good as it gets. Anything not spent on care home fees will be inherited half by me and half by my children and I am aware that my mum’s property maybe a good place for me to retire to both from a location and overheads point of view. Family home, sentimental value aside, I also want to do my best by my mum with the money she worked so hard for.
I am anticipating a long haul. My mum is early 80s and had siblings who went into their 90s. She is physically well although her dementia is vascular so a stroke is always a possibility. I think planning for a minimum of 10years of fees is prudent.
Any thoughts before I see the advisor again properly? Or can anyone direct me to good, simply explained investment advice basics?