UK house prices down 23 percent in real terms.

FungusFighter

Generali wrote: »

It's a contrast to the UK's idea which seems to be 'never mind the quality, feel the width'.

(.

Man, yr wrong there,I did this German bird a while back and I can tell you it was fewk the quality and all about the width with her:D
Not a bad cook tho:T

Dithering_Dad

ukcarper wrote: »

I've just retired and my Mortgage will be paid off next year I wouldn’t like to be paying private rent out of my pension in fact the rent for a house the same as mine would be more than my pension. I think that’s what he means.

You're forgetting that alongside your pension you also have a heck of a large amount of money tied up in your property. If you had the equivalent to your house equity sat in a savings account, then the savings would cover your rent and your pension would be used for the rest. Plus you'd not have to worry about mantaining a property when you're older and there's no buildings insurance to pay.

mewbie_2

Thanks MSE. Only here would a comment about "some German bird" be followed by something about pensions.

ukcarper

Dithering_Dad wrote: »

You're forgetting that alongside your pension you also have a heck of a large amount of money tied up in your property. If you had the equivalent to your house equity sat in a savings account, then the savings would cover your rent and your pension would be used for the rest. Plus you'd not have to worry about mantaining a property when you're older and there's no buildings insurance to pay.

If I had my house equity invested at 3% with no tax it would pay less that 2 thirds of the rent on a equivalent house

neil324

StevieJ wrote: »

I hope you will remind us of this when we are on -5% deflation at the end of the year

Hah

The BOE cuts will be starting to work its way out of the indexes. RPI will be going up.:beer:

StevieJ

Dithering_Dad wrote: »

Not sure why you'd be dependant on the state in retirement just because you don't own your own home. Surely that's got more to do with investing in a pension than a home? In some ways, not paying a huge mortgage would mean having more disposible income to invest in a pension.

If you retire with no funds or pension the state will pay the rent, so owning a property will be of no advantage. If you are a paying private rents that often is the same as a mortgage don't see how this frees up funds to invest in a pension.

StevieJ

Dithering_Dad wrote: »

You're forgetting that alongside your pension you also have a heck of a large amount of money tied up in your property. If you had the equivalent to your house equity sat in a savings account, then the savings would cover your rent and your pension would be used for the rest. Plus you'd not have to worry about mantaining a property when you're older and there's no buildings insurance to pay.

You are forgetting that savings interest barely ever covers much more than inflation, so your funds are losing value each year. I am talking in normal times here, with deflation this would be different.

StevieJ

PayDay wrote: »

In a falling market, it's better to let the landlord take the fall in the value than to take it yourself.

Fair comment in the short term.

StevieJ

ukcarper wrote: »

I've just retired and my Mortgage will be paid off next year I wouldn’t like to be paying private rent out of my pension in fact the rent for a house the same as mine would be more than my pension. I think that’s what he means.

Exactly, unless the state is going to be covering your rent, you wouldn't want to be paying it out yourself. If you pay off the mortgage before you retire it counts as available funds to live on alonside your pension.

ukcarper

I’m sure I would be a lot worst off now than if I had rented. I have retired early on a reasonable pension my house will be paid for in a year and my present mortgage repayments are less than £100. For most if not all of the time I have had a mortgage it has been less than the equivalent rent. Now to rent a similar house to mine it would take my entire pension and if I could get housing benefit I’m sure it wouldn’t cover all my rent.