Debate House Prices


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If you're EVER going to buy a house, you'd better do it before April - here's why.

mayonnaise
mayonnaise Posts: 3,690 Forumite
in Debate House Prices & the Economy
IMO this is going to have a massive impact on the housing market.
Not just those thinking about going into BTL, but BOMAD will also get a nice boost.

http://www.mirror.co.uk/money/youre-ever-going-buy-house-5230599
From April, retirees will be able to access far larger chunks of their pensions than previously. And a lot of them will head straight to the estate agent...

Thoughts?
Don't blame me, I voted Remain.
«134567…12

Comments

  • Cyberman60
    Cyberman60 Posts: 2,472 Forumite
    Hung up my suit!
    Well, there's no point in putting it in a bank so they'll either pay off the mortgage or spend it. A friend of mine spent most of his on a big holiday last year.

    Some of it may go into BTL's but really they are a lot of hassle so I wouldn't.

    On balance I think this is ridiculous scaremongering. :eek:
  • solentsusie
    solentsusie Posts: 577 Forumite
    Tenth Anniversary 500 Posts Combo Breaker
    Definitely scaremongering. I think many pensioners will have far better things to spend their nest eggs on. Not everyone is obsessed with the housing market.
  • michaels
    michaels Posts: 28,691 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you access a large chunk you will pay 40% (or even 45/50%) tax - bit of a disincentive, no?
    I think....
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    solentsusie wrote: »
    Definitely scaremongering. I think many pensioners will have far better things to spend their nest eggs on. Not everyone is obsessed with the housing market.

    Is it scaremongering or a real consideration that better returns can be made than the pensions market?
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • mystic_trev
    mystic_trev Posts: 5,430 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    michaels wrote: »
    If you access a large chunk you will pay 40% (or even 45/50%) tax - bit of a disincentive, no?

    Quite right - I was going to say the same. Many would end up paying higher rate tax to buy the property, and the beneficiaries pay Inheritance Tax on the proceeds when the Pensioner dies.Bit of a non story.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I don't think that the impact will be significant, but I do think that there will be some that do invest in property either for income or helping their children to buy.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I believe the average UK pension pot is £36k
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ukcarper wrote: »
    I believe the average UK pension pot is £36k


    That's not much.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I believe the average UK pension pot is £36k

    That's not the same thing as the average pension pot of someone at or close to retirement.
  • mayonnaise
    mayonnaise Posts: 3,690 Forumite
    michaels wrote: »
    If you access a large chunk you will pay 40% (or even 45/50%) tax - bit of a disincentive, no?

    For a sensible person like you and me, it is a disincentive, yes.

    But the lure of instant cash is going to appeal to many, no matter how tax inefficient their decisions are.

    Research has shown many don't even have the slightest clue about their marginal tax rate.
    Don't blame me, I voted Remain.
This discussion has been closed.
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