Str

chucky

geoffky wrote: »

I took big risk three times in my life lost twice and cost me so much its still painful but the third time i was lucky and it paid off but i put it down to luck in the right person coming along..

i just hope he was gentle - what was his name?

Pobby

the_ash_and_the_oak wrote: »

not totally feeling this imo. Its far from being a given that an STR will buy back into the market at all. My gparents str at the end of 2004 - and yes the initial plan was to buy back in at some later point, w the adv of being cash buyers also. While prices continued to rise after they'd sold it might have appeared to have been a mistake (timing the top not that easy) but w rent being paid for by interest - and not having to worry about property upkeep - plus getting to live in a nicer place than before - gradually thought less and less about buying back in

However, that`s my point. Unless you were prudent ( fortunate ) to take on a long term bond for savings, you will, as I am right now, be getting diddly squat on savings. It`s here, I feel, that many STR people have slipped up.

Fine and dandy if you have say, in our area, £150k from and average sold house, in the bank earning perhaps £600 a month but with IRs at 0.5% it is difficult to get anything meaningful from savings.

PasturesNew

STRing enabled me to sit and do not a lot (to the untrained eye) for over 2 years.

Marvellous. My own personal gap years.

Davesnave

PasturesNew wrote: »

STRing enabled me to sit and do not a lot (to the untrained eye) for over 2 years.

Marvellous. My own personal gap years.

Yup, and me, but my tum & bum got bigger. Needs a health warning.

Davesnave

Pobby wrote: »

However, that`s my point. Unless you were prudent ( fortunate ) to take on a long term bond for savings, you will, as I am right now, be getting diddly squat on savings. It`s here, I feel, that many STR people have slipped up.

Fine and dandy if you have say, in our area, £150k from and average sold house, in the bank earning perhaps £600 a month but with IRs at 0.5% it is difficult to get anything meaningful from savings.

Two examples available last November:

Coventry BS 50+ Account @6.25% with no limit to how much you put in subsequently. Just ending this autumn and reverting to 2%

Coventry BS Poppy Bond also at 6.25% Initial investment only & no top-ups. Will end in November.

Even being lazy, Investec High 5 would, right now, be yielding £4695 gross, £3756 net on your £150k example. Someone who owns outright living in my old road could therefore sell and get over £600 a month towards renting, with only a 3 month tie-in. Not diddly squat.

Agree it's us oldies with equity who get the best out of STR.

owitemisermusa

Timing is everything.

Harry_Powell

the_ash_and_the_oak wrote: »

not totally feeling this imo. Its far from being a given that an STR will buy back into the market at all. My gparents str at the end of 2004 - and yes the initial plan was to buy back in at some later point, w the adv of being cash buyers also. While prices continued to rise after they'd sold it might have appeared to have been a mistake (timing the top not that easy) but w rent being paid for by interest - and not having to worry about property upkeep - plus getting to live in a nicer place than before - gradually thought less and less about buying back in

I'm not sure there are many who have used the STR strategy with the intention of never owning a home again. I'm glad it's working for your grandparents though.

I have had a pretty mixed experience of renting where our landlords have sold the flat from under us twice and we've ended up moving a few times in a short period due to one thing or another. It was a real hassle even at our age, and I can't imagine how painful it'd be if I was elderly. I know my folks feel very secure in their own home now it's bought n paid for, but everyone is different and has a different attitude to risk.

Apart from security of tenure, the other problem would be if your grandparents were in the position where they required any means tested benefits such as Pensions Credit (which also grants council tax payments, etc) then their huge savings would exclude them from this assistance. There is also the (now distant) worry about banks and investment houses going bust and taking thier life savings with them. At least a mortgage free house is a difficult asset to lose.

the_ash_and_the_oak

Well they didn't really have that intention at the outset either tbh!

They did have one place sold while they were there just as they were planning a holiday and instead of going on holiday decided to live in Malta for 6 months (kind of amazed at this - but def approve imo)

lostinrates

the_ash_and_the_oak wrote: »

Well they didn't really have that intention at the outset either tbh!

They did have one place sold while they were there just as they were planning a holiday and instead of going on holiday decided to live in Malta for 6 months (kind of amazed at this - but def approve imo)

I think its a great retirement idea, one my parents might follow, sell up, and rent in different places for the winter, coming home for six months a year. By the time they can't do this their feeling is they'll be facing having a loss of independance in other ways too.

Afriend_2

lostinrates wrote: »

I think its a great retirement idea, one my parents might follow, sell up, and rent in different places for the winter, coming home for six months a year. By the time they can't do this their feeling is they'll be facing having a loss of independance in other ways too.

Are your parents still together? Or is 'Dad' seeing a lot of his first wife?
Sorry, just me being nosey (taking a break from study).