Buying two houses when we retire

maisie1234

We have both worked for 40 yrs by the time we retire both in professional roles so I would like to think we have earned it! I agree, having all your money wrapped up in your house doesnt necesarily make you rich!

Thank you everyone for the advice. Yes, I was concerned about potentially ex DIL's having all our hard earned money. Like the idea of a family estate plan.

Lord_Baltimore

ognum wrote: »

Having a house worth a million does not make you minted!

No, but grown up kids, no mortgage, good pensions, a house in the Country and a flat in Richmond is the aspiration of many who would regard those circumstances as very desirable.

For brevity the word 'minted' is adequately descriptive.

maisie1234 wrote: »

I agree, having all your money wrapped up in your house doesnt necesarily make you rich!

Please, no more, you're breaking my heart you poor thing . You are rich in health, family and peace of mind. Yes, you are minted.

maisie1234

Thank you Lord. I am lucky to have my health and the health of my children. However, as a women I now earn what my male colleagues earn, would I have done that if I had taken a career break, worked part time or allowed my husband to earn lots of money while I stayed in the background?

I know the answer is NO.

We employed nurseries and childminders. We paid shed loads of tax. We have opted out of the state education system because I didnt like what I saw. Although my job is stressful I recognise what rewards it brings in monetary terms. I wont stay until 65.

I didnt go to university but my husband did. I do feel like I missed out and dont want that for my children.

Sometimes people ask me how I did it.

If I could be honest:

1. Married late in life

2. Didnt give up my full time role

3. No expensive hobbies

4. Only debt is the mortgage

5. Married a man that felt the same as I did in terms of priorities.

6. Most importantly - no previous relationships, maintenance etc

7. Stopped at 2 children.

8. If we dont have the money for something we dont buy it. N

9. Choose to live in the SE, and not keep moving. Extended the house as opposed to paying lots of estate agents and stamp duty.

BitterAndTwisted

You don't have to justify to anyone, least of all strangers on an internet forum about the life-choices you have made which have led to you being in such a fortunate position!

Raging house-price inflation in the SE has been your friend too. And that also makes you very fortunate indeed.

I wonder what the current price is for a small flat in Kew these days?

ViolaLass

Innys1 wrote: »

Some further points as follows:

1) Your sons will have to charge you rent on both properties at the market rate. These will be chargeable to Income Tax, subject to their individual circumstances.

Why? If the property is owned outright, it's no one's business whether rent is charged, surely?

ognum

maisie1234 wrote: »

Thank you Lord. I am lucky to have my health and the health of my children. However, as a women I now earn what my male colleagues earn, would I have done that if I had taken a career break, worked part time or allowed my husband to earn lots of money while I stayed in the background?

I know the answer is NO.

We employed nurseries and childminders. We paid shed loads of tax. We have opted out of the state education system because I didnt like what I saw. Although my job is stressful I recognise what rewards it brings in monetary terms. I wont stay until 65.

I didnt go to university but my husband did. I do feel like I missed out and dont want that for my children.

Sometimes people ask me how I did it.

If I could be honest:

1. Married late in life

2. Didnt give up my full time role

3. No expensive hobbies

4. Only debt is the mortgage

5. Married a man that felt the same as I did in terms of priorities.

6. Most importantly - no previous relationships, maintenance etc

7. Stopped at 2 children.

8. If we dont have the money for something we dont buy it. N

9. Choose to live in the SE, and not keep moving. Extended the house as opposed to paying lots of estate agents and stamp duty.

Interesting post, you don't mention inheritence, it may be a personal question but did you also benefit from this?

Also we're all these things conscious decisions or did it just happen that way for both if you. Please note I wouldn't ask but you have mentioned all this.

The other point I would add is that many many people work very hard all their life and do not through circumstance end up in the lucky position you are in so we should appreciate some of it is luck!

maisie1234

I know I dont need justify, but it is surprising how people seem to think its just landed in my lap. They wont move from the middle of nowhere. They dont want their partner to work because then it would require them to be available for school pick ups etc.

Or they have children and then break up starting a family with someone else. There is no way we would have been able to do what we have done with previous kids/maintenance payments.

I have always lived in London and outskirts. Some people choose not to but its not just luck tbh.

maisie1234

No inheirtance. Parents on both sides still alive. I think its me working without a break that is enabling us to do this. Of course we are also in our early 50's so not in the first flush of youth. Brought my first flat when I was 23 with a ex boyfriend and when I met my husband we were both in small negative equity.

However we have lived in our current house for over 14 years and build a large 2 storey extension. That has made a big difference in value and we have a reasonable size garden (for the SE!)

00ec25

ViolaLass wrote: »

Why? If the property is owned outright, it's no one's business whether rent is charged, surely?

because unless the OP pays full market rent then the property will remain within their estate for inheritance tax purposes

given the values involved the OP's estate is above the IHT nil rate band for certain - unless other IHT planning measures are also taken of course

ognum

maisie1234 wrote: »

No inheirtance. Parents on both sides still alive. I think its me working without a break that is enabling us to do this. Of course we are also in our early 50's so not in the first flush of youth. Brought my first flat when I was 23 with a ex boyfriend and when I met my husband we were both in small negative equity.

However we have lived in our current house for over 14 years and build a large 2 storey extension. That has made a big difference in value and we have a reasonable size garden (for the SE!)

As you say you do not have to justify yourself, there are many people in the same or better position, most like you have worked hard some have not.

The important thing before you come to retirement is that you work what your needs are and how they can be provided, people do this in many different ways but as long as you do plan you should be OK.