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whitejohn
Posts: 216 Forumite
To buy or rent a house for the rest of my retirement?
I’m 69 and still touring in my caravan with £190K in the bank earning very little. State pension only.
Option 1 is a residential home with nice views, friends, security and local train in case I’m unable to drive one day. Only downside is that it’s a very small flat. With my current outgoings my £190K savings may run out in 20 years time. Probably longer if I’m not driving and holidaying so much in 20 years time. Worst case, maybe I could claim some housing or council tax benefits at 89 years of age? The simplest solution with no commitment?
Option 2 is buy a flat (noisy) or something for £120K. Remaining cash from £190K may run out in 12 years time but the property should have increased in value by say 2% pa having deducted buying and selling fees? Not sure if I would be able to keep my house and claim some benefits? This option gives me more space and a small investment? Fairly simple solution?
Option 3 is a modern semi detached bungalow for over 55’s, virtually detached by the garage (quiet), plenty of space and parking. This is 75% shared ownership and I can buy it for £100K. Charges of £1000 pa to cover various costs, insurance and external building maintenance. Lease 125 years from from 2005.
On selling there is a complicated deferred payment system. At the current market value this is £1500 for each year lived there so 20 years is £30K. If they base it on the buy price then £1000 for each year and £20K for 20 years. (needs clarification)
Probably OK if I never intend to sell until they carry me out in a box? I have no dependants. Slightly complicated live now and pay later solution?
Any ideas on which option would be best for me? Thanks
I’m 69 and still touring in my caravan with £190K in the bank earning very little. State pension only.
Option 1 is a residential home with nice views, friends, security and local train in case I’m unable to drive one day. Only downside is that it’s a very small flat. With my current outgoings my £190K savings may run out in 20 years time. Probably longer if I’m not driving and holidaying so much in 20 years time. Worst case, maybe I could claim some housing or council tax benefits at 89 years of age? The simplest solution with no commitment?
Option 2 is buy a flat (noisy) or something for £120K. Remaining cash from £190K may run out in 12 years time but the property should have increased in value by say 2% pa having deducted buying and selling fees? Not sure if I would be able to keep my house and claim some benefits? This option gives me more space and a small investment? Fairly simple solution?
Option 3 is a modern semi detached bungalow for over 55’s, virtually detached by the garage (quiet), plenty of space and parking. This is 75% shared ownership and I can buy it for £100K. Charges of £1000 pa to cover various costs, insurance and external building maintenance. Lease 125 years from from 2005.
On selling there is a complicated deferred payment system. At the current market value this is £1500 for each year lived there so 20 years is £30K. If they base it on the buy price then £1000 for each year and £20K for 20 years. (needs clarification)
Probably OK if I never intend to sell until they carry me out in a box? I have no dependants. Slightly complicated live now and pay later solution?
Any ideas on which option would be best for me? Thanks
0
Comments
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Do you really want to buy somewhere or are you happy to keep touring? You can make that £190k work a lot harder for you than just having it sitting in a couple of savings accounts whilst you continue touring.0
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I'm happy just now and it's very cheap but cannot see any safe way of investing the £190K0
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Any kids/dependants who will inherit the result of this decision John?Mornië utulië0
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At the moment your capital is probably too high to make you eligible for pension credit. However if you spent it on your main residence then you would be able to make a claim depending on how much state pension you have. Also possible council tax reduction as well. Cab could probably help you with what if predictions. Of course impossible to predict state help for anyone too far into the future. Hope that helps.0
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Are you currently living in your caravan?0
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Have you factored inflation into your sums for the retirement home?Make £2024 in 2024
Prolific to 29/2/24 £184.97, Chase Interest £11.88, Chase roundup interest £0.18, Chase CB £16.96, Roadkill £1.10, Octopus referral reward £50, Octopoints £6.30 to 31/1/24, Topcashback £4.64, Shopmium £3
Total £279.03/£2024 13.8%Make £2023 in 2023Water sewerage refund: £170.62,Topcashback: £243.47, Prolific: to 31/12/23 £975, Haggling: £45, Wombling(Roadkill): £6.04, Chase CB £149.34, Chase roundup interest £1.35, WeBuyBooks:£8.37, Misc sales: £406.59, Delay repay £22, Amazon refund £3.41, EDF Smart Meter incentive £100, Santander Edge Cashback-Fees: £25.14, Octopus Reward £50, Bank transfer incentives £400Total: £2606.33/£2023 128.8%0 -
Do you really want to buy somewhere or are you happy to keep touring? You can make that £190k work a lot harder for you than just having it sitting in a couple of savings accounts whilst you continue touring.Lord_Baltimore wrote: »Any kids/dependants who will inherit the result of this decision John?
No dependants at all0 -
Norman_Castle wrote: »Are you currently living in your caravan?
yes, have been doing it 3 years. Love it but probably cannot do it forever so planning ahead.0
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