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  • FIRST POST
    • whitejohn
    • By whitejohn 16th Mar 17, 4:50 PM
    • 142Posts
    • 18Thanks
    whitejohn
    To buy or rent a house for the rest of my retirement?
    • #1
    • 16th Mar 17, 4:50 PM
    To buy or rent a house for the rest of my retirement? 16th Mar 17 at 4:50 PM
    To buy or rent a house for the rest of my retirement?

    Iím 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 Iím unable to drive one day. Only downside is that itís a very small flat. With my current outgoings my £190K savings may run out in 20 years time. Probably longer if Iím 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 55ís, 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
Page 1
    • Pixie5740
    • By Pixie5740 16th Mar 17, 5:22 PM
    • 9,904 Posts
    • 13,535 Thanks
    Pixie5740
    • #2
    • 16th Mar 17, 5:22 PM
    • #2
    • 16th Mar 17, 5:22 PM
    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.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • whitejohn
    • By whitejohn 16th Mar 17, 5:30 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    • #3
    • 16th Mar 17, 5:30 PM
    • #3
    • 16th Mar 17, 5:30 PM
    I'm happy just now and it's very cheap but cannot see any safe way of investing the £190K
    • Lord Baltimore
    • By Lord Baltimore 16th Mar 17, 5:34 PM
    • 1,263 Posts
    • 1,261 Thanks
    Lord Baltimore
    • #4
    • 16th Mar 17, 5:34 PM
    • #4
    • 16th Mar 17, 5:34 PM
    Any kids/dependants who will inherit the result of this decision John?
    I get bored very qu
    • When the going gets tough
    • By When the going gets tough 16th Mar 17, 5:43 PM
    • 560 Posts
    • 1,020 Thanks
    When the going gets tough
    • #5
    • 16th Mar 17, 5:43 PM
    • #5
    • 16th Mar 17, 5:43 PM
    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.
    • Norman Castle
    • By Norman Castle 16th Mar 17, 5:46 PM
    • 5,714 Posts
    • 4,465 Thanks
    Norman Castle
    • #6
    • 16th Mar 17, 5:46 PM
    • #6
    • 16th Mar 17, 5:46 PM
    Are you currently living in your caravan?

    • Slinky
    • By Slinky 16th Mar 17, 5:48 PM
    • 4,158 Posts
    • 16,764 Thanks
    Slinky
    • #7
    • 16th Mar 17, 5:48 PM
    • #7
    • 16th Mar 17, 5:48 PM
    Have you factored inflation into your sums for the retirement home?
    • whitejohn
    • By whitejohn 16th Mar 17, 5:49 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    • #8
    • 16th Mar 17, 5:49 PM
    • #8
    • 16th Mar 17, 5:49 PM
    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.
    Originally posted by Pixie5740
    Any kids/dependants who will inherit the result of this decision John?
    Originally posted by Lord Baltimore
    No dependants at all
    • whitejohn
    • By whitejohn 16th Mar 17, 5:52 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    • #9
    • 16th Mar 17, 5:52 PM
    • #9
    • 16th Mar 17, 5:52 PM
    Are you currently living in your caravan?
    Originally posted by Norman Castle
    yes, have been doing it 3 years. Love it but probably cannot do it forever so planning ahead.
    • whitejohn
    • By whitejohn 16th Mar 17, 5:54 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    Have you factored inflation into your sums for the retirement home?
    Originally posted by Slinky
    Not really, tried my best to do a spreadsheet for comparison of the 3 options but not a financial expert
    • whitejohn
    • By whitejohn 16th Mar 17, 5:59 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    Not really, tried my best to do a spreadsheet for comparison of the 3 options but not a financial expert
    Originally posted by whitejohn
    It's a not for profit so quite reasonable costs
    • Lord Baltimore
    • By Lord Baltimore 16th Mar 17, 6:04 PM
    • 1,263 Posts
    • 1,261 Thanks
    Lord Baltimore
    No dependants at all
    Originally posted by whitejohn
    In which case you don't want to put money into an illiquid asset (property). Go for option 1 after you come back from Las Vegas and Bangkok. You will probably be brown bread before your money runs out

    Have a great retirement; you've earned it.
    I get bored very qu
    • whitejohn
    • By whitejohn 16th Mar 17, 6:06 PM
    • 142 Posts
    • 18 Thanks
    whitejohn
    Not really, tried my best to do a spreadsheet for comparison of the 3 options but not a financial expert
    Originally posted by whitejohn
    In which case you don't want to put money into an illiquid asset (property). Go for option 1 after you come back from Las Vegas and Bangkok. You will probably be brown bread before your money runs out

    Have a great retirement; you've earned it.
    Originally posted by Lord Baltimore
    Brilliant, thank you!
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