Why buy – ever?

System

A lot of buy toilet mortgages demand landlords charge rent of at least 125% of the mortgage, rent you cannot reduce by overpayments and rent is inflated by the taxes and insurance that landlords have to pay, as well as their need for a prophet

System

And property makes capital gains that can be used as an inheritance to children

mwpt

enthusiasticsaver wrote: »

If you do not buy a property and pay off your mortgage while working how on earth do people afford to pay rent on a pension which is usually considerably less than peoples' wages? That was always the reason we bought our house in that we thought why should we pay some landlord's mortgage rather than our own?

Why is it beyond you that people might choose to invest money elsewhere and buy when they retire, NOT rent forever. It's really not that difficult of a concept and yet so many are just completely blind to it.

(*)

System

Mwpt - is there a better investment than property?

lisyloo

Mwpt - is there a better investment than property?

Sometimes there is - yes.
For example if you are higher rate tax payer who gets higher rate tax reflief (40%) on pension contributions, plus your employer matches it (100% upilft), plus HMRC offers you 12% employees NI and your employer offers you up to 13.8% employers NI.

mwpt

MatthewAinsworth wrote: »

Mwpt - is there a better investment than property?

That was why I put my (*) because I just knew someone would fail to engage brain and not understand the point of my post.

The point being, it does not matter if there is a better investment strategy, it only matters that there are alternate strategies, that allow a person to buy outright in retirement. Something almost everyone seems to chose to not see.

You could read this guys blog:
http://www.retirementinvestingtoday.com

If you come back and say that the strategy is not optimal because he is renting, I am going to glare sternly at the screen and shake my head. I warn you.

jackieblack

enthusiasticsaver wrote: »

If you do not buy a property and pay off your mortgage while working how on earth do people afford to pay rent on a pension which is usually considerably less than peoples' wages? That was always the reason we bought our house in that we thought why should we pay some landlord's mortgage rather than our own?


If we decide to sell up and rent at least we will have the sale proceeds to subsidise our savings. It beats me how some people think they will be able to afford to pay £800+ per month in rent on a pension and who trusts the government not to move the goalposts re housing benefit. Plus you are in control of where you live if you own a property and are not dependent on housing benefit to pay rent on some hovel somewhere.


That is why we bought our house for independence and financial security and have also helped our daughters buy their houses.

I agree.
I find the thought of retiring and not owning my home terrifying!

ukcarper

mwpt wrote: »

Why is it beyond you that people might choose to invest money elsewhere and buy when they retire, NOT rent forever. It's really not that difficult of a concept and yet so many are just completely blind to it.

(*)

The problem is you need to live somewhere and rent over a lifetime will inevitably be more than mortgage payments.

jackieblack

mwpt wrote: »

Why is it beyond you that people might choose to invest money elsewhere and buy when they retire, NOT rent forever. It's really not that difficult of a concept and yet so many are just completely blind to it.

(*)

That's assuming they can afford to pay rent and have enough money left to invest

mwpt

ukcarper wrote: »

The problem is you need to live somewhere and rent over a lifetime will inevitably be more than mortgage payments.

I'm giving my screen a very stern glare right now.