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Selling property and buying an annuity?

  • 30-11-2019 9:36pm
    #1
    Hannaho
    Registered Users, Registered Users 2 Posts: 733 ✭✭✭


    Hi! I'm 54 and have two medical conditions which means I get tired easily. I have a property that I used to rent. I don't want to rent again due to hassle and expenses. I was thinking of selling the property and buying an annuity. Retiring early. Property worth 425k - so would probably get annuity of 13000 per year. Was hoping to continue then just working 2 days per week until pension age, netting around 1800 per month. Is this possible? What are the pitfalls? Is it pie in the sky? Can I buy an annuity at 54/55?


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,604 Mod ✭✭✭✭Jim2007


    Hannaho wrote: »
    Hi! I'm 54 and have two medical conditions which means I get tired easily. I have a property that I used to rent. I don't want to rent again due to hassle and expenses. I was thinking of selling the property and buying an annuity. Retiring early. Property worth 425k - so would probably get annuity of 13000 per year. Was hoping to continue then just working 2 days per week until pension age, netting around 1800 per month. Is this possible? What are the pitfalls? Is it pie in the sky? Can I buy an annuity at 54/55?

    The big issue would be your health and if your employment is sustainable over the next 10 years or so. And none of us are in a position to comment on that.


  • #3
    jimmy456
    Registered Users, Registered Users 2 Posts: 90 ✭✭jimmy456


    Why not give the management of the property to an estate agent?


  • #4
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    I'm not aware of any companies offering annuities to people where the purchase price did not arise from a pension fund. Back in the middle ages when I first joined the financial services industry we had products called Purchase Life Annuities which could accommodate what you want, but I haven't seen one of those in decades. I think the money must be in a pension fund before you can buy an annuity these days.

    Very difficult to comment without knowing an awful lot more about your circumstances - potential tax on sale of property, liabilities, family etc.

    A possibility that might suit would be to buy a property which has been approved for lease to a Local Authority. Lease of up to 25 years at 80% market rent. Rent paid by Local Authority direct to you whether or not they have a tenant in the property. No need to register with PRTB. No involvement with the management or maintenance of the property and no contact with the tenants - Local Authority does all that. Rent reviews every 3 years in line with inflation only. Lease provides that the Local Authority must give you back the property at the end of the lease in the same condition as they got it.


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