House prices to keep rising and building more won't be enough

Conrad

sebadee wrote: »

We bought our place this summer, and I have to say, I would much rather have far more sober market. I can't see what good this does anyone, apart from someone with a big portfolio to sell off.

On the other hand it's a conveyor many of us are riding with the aim of one day downsizing to release a large tax free lump sum. A perfectly reasonable aim and a ride millions are enjoying. A lot more fun than investing just in shares and watching their price on a screen. The property journey can be enthralling, fun do'up projects, and you get to enjoy the asset on the way.




Lisyloo - you keep saying 'I know I'm stating the obvious but people need to realise they cannot downsize if they want to remain in that family home'.


You are 100% correct, that is a statement of the bleedin obvious. Yet to meet anyone in the real world that does not realise what downsizing entails.

lisyloo

Yet to meet anyone in the real world that does not realise what downsizing entails.

I think there are people out there (and on these boards) who count it as asset AND expect to benefit from the imputed rent, but I accept that you don't.

ukcarper

lisyloo wrote: »

I think there are people out there (and on these boards) who count it as asset AND expect to benefit from the imputed rent, but I accept that you don't.

The imputed rent is as good as a pension in itself. I certainly couldn't afford to live in my current house if I didn't own it and if I wanted to stay in the same area (which I do) I would struggle paying the lowest rents in the area.

lisyloo

The imputed rent is as good as a pension in itself.

No it isn't.
Sure - the saving in accomodation costs (otherwise known as imputed rent) is really really helpful and a very good boost to have, but it does NOT pay you an income that you can live on.
The definition of imputed rent is money you don't have to spend on rent.
It is NOT money you can eat or buy food with.

It's a fantastic idea to have free rent in retirement, but if you have a modest home (like most people will) then it won't ALSO provide an income for retirement AS WELL.

ukcarper

lisyloo wrote: »

No it isn't.
Sure - the saving in accomodation costs (otherwise known as imputed rent) is really really helpful and a very good boost to have, but it does NOT pay you an income that you can live on.
The definition of imputed rent is money you don't have to spend on rent.
It is NOT money you can eat or buy food with.

It's a fantastic idea to have free rent in retirement, but if you have a modest home (like most people will) then it won't ALSO provide an income for retirement AS WELL.

No it doesn't pay you an income but it reduces the amount of pension you need to live cheapest rents in my area are £800 a week that's quite a chunk of someone who earned a modesty incomes pension.

wotsthat

lisyloo wrote: »

No it isn't.
Sure - the saving in accomodation costs (otherwise known as imputed rent) is really really helpful and a very good boost to have, but it does NOT pay you an income that you can live on.
The definition of imputed rent is money you don't have to spend on rent.
It is NOT money you can eat or buy food with.

It's a fantastic idea to have free rent in retirement, but if you have a modest home (like most people will) then it won't ALSO provide an income for retirement AS WELL.

I don't think anyone is saying imputed rent is, say, £350 saved on rent AND £350 extra to spend i.e. £700.

It's £350 that can be spent on something other than rent.