Rent problems

crash123

Pimperne1 wrote: »

Isn't that more likely to be because the area in which you live is relatively unattractive and impoverished?

The area was not unattractive in the boom years.

chucknorris

crash123 wrote: »

But house prices will double in 5 years so you will make lots of money. Correct I read it on here.:j

I have already made the money that I want to make, I only need to consolidate my position now and enjoy life now rather than give myself more work to do.

RenovationMan

chucknorris wrote: »

I have already made the money that I want to make, I only need to consolidate my position now and enjoy life now rather than give myself more work to do.

Its a pity that less people take this approach as they start closing in on retirement, perhaps we would see fewer people in retirement poverty. Our plan is something similar though our retirement vehicle is different.

We bought a large house after the crash and while interest rates were low in a deliberate aim to feather our retirement nest egg. Our pensions and savings are not giving us a great return at the moment so we are ploughing a larger proportion of our money into the mortgage. Once we perceive a sea-change in finances we will move back to savings/investments.

The end game is to downsize from our large home into an energy efficient house, perhaps even a passiv haus (where little or no heating is required) and to release a large amount of tax free cash. This cash, combined with our various saving and pension plans will provide us with a comfortable retirement.

As we approach certain chronological milestones we will be altering our investment strategies. The first one, at perhaps age 55 will be to put the house up for sale. This will allow us time to salt the released equity away into ISAs and other tax havens before we retire.

Its really not difficult to plan a comfortable retirement, you just have to make the effort and take advantages of any unexpected windfalls that come your way (i.e. like 0.5% BoE rates).

ILW

RenovationMan wrote: »

Its really not difficult to plan a comfortable retirement, you just have to make the effort and take advantages of any unexpected windfalls that come your way (i.e. like 0.5% BoE rates).

Think you may have seen things differently if rates had unexpetedly gone up to 10% +

geneer

ILW wrote: »

Think you may have seen things differently if rates had unexpetedly gone up to 10% +

I would have thought rates of 10% would be great for retirement.

And I would have thought inflation isn't so great for retirement.

And I would have thought economic collapse isn't so great for retirement.

RM might be projecting a glass is half filled persona, but he should keep an eye on the real world too.

ILW

RM has done well, but I believe he has also had a fair share of good luck to aid his hard work.

Some have done very well out of the credit crunch.

crash123

chucknorris wrote: »

I have already made the money that I want to make, I only need to consolidate my position now and enjoy life now rather than give myself more work to do.

You are a bit like me and my partner we are 43 and 50 and we are both semi- retired

RenovationMan

ILW wrote: »

Think you may have seen things differently if rates had unexpetedly gone up to 10% +

There was never any likelyhood that rates would go up to 10%. It was obvious to all that the world's finances were/are in disarray and that low rates will be with us for years to come.

The mistake would be to think that low rates were here forever and to live life accordingly. We know we have a window of perhaps 8 years to blitz our mortgage before rates start to rise and this is exactly what we are doing. By the time rates do start to move I will have a rich man's home on a poor man's mortgage.