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  • FIRST POST
    • sparkychris
    • By sparkychris 17th Mar 17, 7:20 PM
    • 480Posts
    • 837Thanks
    sparkychris
    Hundred grand in 23 years
    • #1
    • 17th Mar 17, 7:20 PM
    Hundred grand in 23 years 17th Mar 17 at 7:20 PM
    Hello team!

    I have been awful with money my whole life and up to my neck in debt until a few years ago when I had my light bulb moment and dug myself out of debt.

    I am now allergic to borrowing and rent my home, which is not wise, I know.

    If I want to retire in 23 years time with a lump sum, how would/could I work out how much I would need to accrue, one way or the other that would equate to a hundred grand of today's money?

    I am up to about 20k at the minute, and won't lock my cash away in pensions. I pay into a ls 80 fund, punt on shares and basically just save up!
    lurker
Page 3
    • jdw2000
    • By jdw2000 19th Mar 17, 8:41 PM
    • 403 Posts
    • 103 Thanks
    jdw2000
    You are right on CGT, but forgetting other taxes such as the increased stamp duty for those who own more than one home. you re also forgetting that is you move into a home that was formerly rented then CGT is reduced.

    I dont disagree owning your own home is better- i suggested that earlier in t his thread. The OP does not want to move from their rented home where they live (and cannot afford to buy what they want there apparently), so was suggesting some alternatives to renting privately in old age.
    Originally posted by atush
    He's already 41. He needs to buy now. How old do you need to be before you can't get a mortgage at all? Then he won't have the luxury of a choice in the matter.
    • Anthorn
    • By Anthorn 19th Mar 17, 9:39 PM
    • 2,973 Posts
    • 768 Thanks
    Anthorn
    He's already 41. He needs to buy now. How old do you need to be before you can't get a mortgage at all? Then he won't have the luxury of a choice in the matter.
    Originally posted by jdw2000
    Actually, owning one's own home, one's home is one's castle, etc. etc. is pretty much not supported in the rest of Europe. There people will rent and if they want to buy their own own they will save a large deposit to reduce the mortgage repayments. That's especially true in France. It's pretty much uniquely British to own one's own home.

    At the age of 41 he's pretty much missed the boat for a traditional 25 year mortgage. That's if he can afford to buy on a 25 year mortgage. It's not exactly for no reason that mortgage terms have increased to 30 years and upwards to 35 years and beyond: It's in order to get lower repayments to afford high property prices.
    http://www.thisismoney.co.uk/money/mortgageshome/article-3397746/The-rise-35-year-mortgage.html

    Personally, I would look at shared ownership schemes at my local council and housing associations if buying one's own home is desired. There are other means and I link to government information:
    https://www.gov.uk/affordable-home-ownership-schemes/overview

    But I would put a pension first on my list.
    I don't think and I know I don't think so therefore I am. At least I think so. But hold on I don't think ... er ...
    • justme111
    • By justme111 20th Mar 17, 7:10 AM
    • 2,435 Posts
    • 2,325 Thanks
    justme111

    At the age of 41 he's pretty much missed the boat for a traditional 25 year mortgage.
    Originally posted by Anthorn
    It is utterly and completely untrue. Most normal mortgages have cut off points of 70/75 which he perfectly fits , there is a market for mortgages over 55 even, retirement mortgages and there is an option of shortening the mortgage term.
    • Doshwaster
    • By Doshwaster 20th Mar 17, 8:22 AM
    • 4,621 Posts
    • 3,764 Thanks
    Doshwaster
    He's already 41. He needs to buy now. How old do you need to be before you can't get a mortgage at all? Then he won't have the luxury of a choice in the matter.
    Originally posted by jdw2000
    I bought my first house at 38 (when I decided that it was about time that I acted like a grown up) but I have friends now in the mid to late 40s who are struggling to get a standard 25 year mortgage even with a good income and decent deposit so are having to pay more in monthly repayments for a 20 year deal.

    Buying was definitely a good financial decision for me. The house is going up in value by at least £10k a year which is far more than I could afford to save. I now have over £100k equity available so should "disaster strike" (as the OP is so worried about) then I could sell to release that money.
    • Anthorn
    • By Anthorn 20th Mar 17, 8:45 AM
    • 2,973 Posts
    • 768 Thanks
    Anthorn
    It is utterly and completely untrue. Most normal mortgages have cut off points of 70/75 which he perfectly fits , there is a market for mortgages over 55 even, retirement mortgages and there is an option of shortening the mortgage term.
    Originally posted by justme111
    Whose mortgages are they? You say. Yes, I know that rhymes.

    But my major point flew over your head. Here it is in simpler terms just for you: One can only get a mortgage if the repayments can be afforded. Hence the market for longer term mortgages in which the repayments are cheaper. Usually the term for a mortgage ends at retirement age. Hence at the age of 41 the boat to a traditional 25 year mortgage has been missed. However the retirement age is gradually being increased so maybe he won't be missing the boat in the near future.
    I don't think and I know I don't think so therefore I am. At least I think so. But hold on I don't think ... er ...
    • atush
    • By atush 20th Mar 17, 11:18 AM
    • 15,701 Posts
    • 9,503 Thanks
    atush
    He's already 41. He needs to buy now. How old do you need to be before you can't get a mortgage at all? Then he won't have the luxury of a choice in the matter.
    Originally posted by jdw2000
    Yeah, and I said that before. Why grind your axe at me? When we agree?

    The OP said he doesnt want to move. Even if we disagree, we cant make him.
    • atush
    • By atush 20th Mar 17, 11:20 AM
    • 15,701 Posts
    • 9,503 Thanks
    atush
    Actually, owning one's own home, one's home is one's castle, etc. etc. is pretty much not supported in the rest of Europe.
    Actually, in europe there is more land so less pressure on housing and rents are lower.
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