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Newb question: How to use an owned house?

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  • 05-09-2009 2:51pm
    #1
    Cianos
    Registered Users Posts: 4,850 ✭✭✭


    Hey folks,
    I'd appreciate a bit of advice on this as it's something I know nothing about. My mother owns her house outright, a regular semi detached 4 bed. Since she has very little income, she wants to look in to ways on how to use the house for investment to hopefully make some money. It seems wasteful to have so little cash coming in yet sitting on a property that could be working for her instead.

    What would be the first things one should look in to regarding this?

    Any help would be great!


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    #2
    ronbyrne2005
    Closed Accounts Posts: 3,494 ✭✭✭ronbyrne2005


    Cianos wrote: »
    Hey folks,
    I'd appreciate a bit of advice on this as it's something I know nothing about. My mother owns her house outright, a regular semi detached 4 bed. Since she has very little income, she wants to look in to ways on how to use the house for investment to hopefully make some money. It seems wasteful to have so little cash coming in yet sitting on a property that could be working for her instead.

    What would be the first things one should look in to regarding this?

    Any help would be great!

    Her kids who will inherit it could give her cash every year as they will get much more back in inheritance or give her a lump sum that could buy and annuity.
    She could have it divided up into two halfs and rent out half. live downstairs in house herself and have upstairs for lodger with own entrance or shared hallway.
    Sell and move to smaller property in area.
    Rent rooms on a lodging basis to students.

    I wouldnt reccomend those equity release things as in long run they are massively expensive and interest accumulates year on year at compund rates on prinicpal and previous interest meaning taking out 25% equity with no repayments till death could mean zero inheritence from house( if she wants to leave stuff in her will).


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    #3
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    Your mother could move in with you and rent the house out - alternatively you move in and rent your place out.


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    #4
    Victor
    Registered Users Posts: 78,387 ✭✭✭✭Victor


    ronbyrne2005 wrote: »
    I wouldnt reccomend those equity release things as in long run they are massively expensive and interest accumulates year on year at compund rates on prinicpal and previous interest meaning taking out 25% equity with no repayments till death could mean zero inheritence from house( if she wants to leave stuff in her will).
    Be careful also, if she shes a cash lump sum, it may seriously affect her entitlement to certain welfare benefits, especially if she has a means tested pension.


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