New start

Author
Discussion

colinrob

Original Poster:

1,198 posts

250 months

Saturday 25th March 2017
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What would you do if you were approaching 55 had £200,000 equity in house and able to cash in pensions for £100,000 after tax so have £300,000 available to start a new business but must have accommodation with it, my thoughts are bed and breakfast on the south coast while perhaps buying and selling the odd car and even doing it in an area where you can hire, repair and sell bicycles. I know I will also need a mortgage on any B&B purchase

anonymous-user

53 months

Saturday 25th March 2017
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if it was me, I'd do the B&B - if you could get somewhere for the money and avoid a mortgage. Wouldnt want to take on another mortgage at my age (yep I'm 55 too)

colinrob

Original Poster:

1,198 posts

250 months

Saturday 25th March 2017
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Not worried about mortgage as to me it would just be a business loan and its property so it will always go up in value

anonymous-user

53 months

Saturday 25th March 2017
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yep I uppose if you see it as a business loan then thats different.

The alternative might be a pub with accomodation, but then the hours are much longer

colinrob

Original Poster:

1,198 posts

250 months

Saturday 25th March 2017
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In a pub I would definitely drink all the profits

languagetimothy

1,075 posts

161 months

Saturday 25th March 2017
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I'll be 55 this year too, and whilst currently not working (banking contractor) and living off savings I too am having a think about things.
Firstly, I do have a place in northern Portugal so thinking I might clear off there as I have well into 300k equity in my U.K. House. Easy cost of living, a few smallish company pensions that kick in at 65 plus hopefully.. govt pension later. So could easily do it.
I also found that I had a very small pension which I had taken out years ago but stopped paying into but forgot all about. Worth bugger all as a pension but could take it all out this year, only about 14k and spruce up the house with part of it with a view to selling.

With your nett 100k that must be quite a nice size. What would it pay if you didn't take the lump sum? A few hundred a month maybe? Buying a B&ab is ok but even with your equity you'd be pushing it a bit and shouldn't put all your eggs in that one basket. You'd of course could get the mortgage as a business and if you buy a going concern make sure the books add up. Probably a tough business to be in what with competition and winter down time.

MockingJay

1,311 posts

128 months

Saturday 25th March 2017
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Old chap near me fixes peddle bikes and then sells them for a tenner. Entrepreneur.

21TonyK

11,494 posts

208 months

Saturday 25th March 2017
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Don't bank on commercial property prices going up like domestic. My parents old B&B/hotel sold for £350k back in 1991, today (26 years later!) its on the market for £450k and its been maintained properly and still does good business.

Also, don't underestimate how much hard work dealing with the public can be!

anonymous-user

53 months

Saturday 25th March 2017
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21TonyK said:
Don't bank on commercial property prices going up like domestic. My parents old B&B/hotel sold for £350k back in 1991, today (26 years later!) its on the market for £450k and its been maintained properly and still does good business.

Also, don't underestimate how much hard work dealing with the public can be!
yep, this, commercial property value is all (or to a large extent) about the turn over and revenue

condor

8,837 posts

247 months

Saturday 25th March 2017
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I'd become semi-retired and do odd jobs for neighbours. B & B too much like hard work, and certainly wouldn't want a mortgage at that age.
I became semi-retired at 50, with my mortgage paid off and savings put aside I didn't need to earn much. I started a dog walking and pet sitting business in the local area which pays day to day living costs. 7 years on, I'm still happy doing it - made lots of new friends, enjoy walking in the countryside with various dogs and stay in nice houses.