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

lisyloo

If you access a large chunk you will pay 40% (or even 45/50%) tax - bit of a disincentive, no?

Certainly.
A small minority will however have enough in their 25% tax free lump sum to put down a deposit on a BTL or to contribute to the deposit of an offspring?. How much would you need afterall £25K - not a fortune is it?
I have also seem some rules that will allow the properties of people going into care homes to be rented out (presumably by their offpring). I think this again will only affect a small number, but these two measure could be enough to make a difference in the market.

On the other hand my gut feeling is that were reaching a peak for affordability an that's with mortgage rates at record lows (I mean mortgae rates not BOE rates).

Personally I can't think of anything I'd like to do LESS in retirement than be a lanlord and I think many will feel the same, but it doesn't have to be everyone does it?

Thrugelmir

chucknorris wrote: »

So I thought perhaps someone could have elected to take 25% tax free and leave the rest in the pension pot, but subject to tax when eventually withdrawn.

Correct. If there's no other taxable income then the first £10,500 pa will be tax free.

stator

If you look at Australia where they have a similar 'free for all' pension spending system most people put their money into property. The baby boomers in particular seem to have an obsession with property as an investment and a callous disregard to future generations.

It's just another way the chancellor is trying to screw over young people.

ukcarper

stator wrote: »

If you look at Australia where they have a similar 'free for all' pension spending system most people put their money into property. The baby boomers in particular seem to have an obsession with property as an investment and a callous disregard to future generations.

It's just another way the chancellor is trying to screw over young people.

How many boomers do you think have a pension pot big enough to buy a property.

Generali

mystic_trev wrote: »

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.

Don't dismiss the ability of the small investor to make incredibly bad decisions.

Generali

stator wrote: »

If you look at Australia where they have a similar 'free for all' pension spending system most people put their money into property. The baby boomers in particular seem to have an obsession with property as an investment and a callous disregard to future generations.

It's just another way the chancellor is trying to screw over young people.

No they don't. I live in Australia and work for one of the biggest providers of Super (pension) funds.

Most people invest in a mix of shares and bonds.

Crashy_Time

Generali wrote: »

No they don't. I live in Australia and work for one of the biggest providers of Super (pension) funds.

Most people invest in a mix of shares and bonds.

Average pot won`t be big enough to pee in, at best two or three boozy holidays abroad for the majority, small minority of mentalists with slightly bigger pots will buy a BTL, won`t save the housing market though.

lisyloo

How many boomers do you think have a pension pot big enough to buy a property.

They don't need to buy an entire house to get a BTL, they just need enough for a deposit.
To help offspring onto the ladder they only need PART of a deposit.

How many do you think it needs to be to affect the housing market?
I don't know, but I'm sure it's not ALL pensioners that need to buy a house to have an effect.

ukcarper

lisyloo wrote: »

They don't need to buy an entire house to get a BTL, they just need enough for a deposit.
To help offspring onto the ladder they only need PART of a deposit.

How many do you think it needs to be to affect the housing market?
I don't know, but I'm sure it's not ALL pensioners that need to buy a house to have an effect.

I'm sure there will be some and that will obviously have some effect but I think the effect will be small.

Crashy_Time

lisyloo wrote: »

They don't need to buy an entire house to get a BTL, they just need enough for a deposit.
To help offspring onto the ladder they only need PART of a deposit.

How many do you think it needs to be to affect the housing market?
I don't know, but I'm sure it's not ALL pensioners that need to buy a house to have an effect.

Good points, but when it`s gone it`s gone, what will be the next move to prop the market, compulsory mortgage enrolment when you join Tesco?