"Housing Market Slumps"

westernpromise

ukcarper wrote: »

But as the average age of benefiicary is 56 do they need it for housing.

At 56 you're 9 years off retirement and probably still have a mortgage, so yes, I would think you do.

ukcarper

westernpromise wrote: »

At 56 you're 9 years off retirement and probably still have a mortgage, so yes, I would think you do.

Could pay off your mortgae yes might even buy a bigger house. I have no doubt that inheritance impacts on the housing market but I don't think it's a big consideration for the majority of people who want to buy.

economic

ukcarper wrote: »

Could pay off your mortgae yes might even buy a bigger house. I have no doubt that inheritance impacts on the housing market but I don't think it's a big consideration for the majority of people who want to buy.

doesn't have to be about buying. its nice to know if you have a large gift or inheritance coming your way. provides a safety net. makes decisions about having a mortgage for 30 years a lot easier. gifts (or "bank of mum and dad") are pretty significant in the capital. maybe not the average but the average is irrelevant anyway.

lisyloo

Could pay off your mortgae yes might even buy a bigger house.

Wouldn't a lot of people at 56 have a small mortgage, and more of them be looking for a smaller home rather than a bigger one?


Could buy a smaller home and holiday home. Of course it's never going to be unwanted, but these are the people at the stage in their lives when they least need the money.

ukcarper

economic wrote: »

doesn't have to be about buying. its nice to know if you have a large gift or inheritance coming your way. provides a safety net. makes decisions about having a mortgage for 30 years a lot easier. gifts (or "bank of mum and dad") are pretty significant in the capital. maybe not the average but the average is irrelevant anyway.

As I said no doub that impact on housing is not not a major consideration for most people who want to buy a property.

I don't think living your life in expectation of receiving a large inheritance is a very good way to plan for the future.

lisyloo

if you have a large gift or inheritance coming your way

How do you KNOW for sure there is a large gift coming your way? and not (for example) going to the toy boy or cats home or in care fees?
I agree with carper this is very poor financial planning.

Maybe if you're very rich and know the amounts will exceed care home fees, but people who are rich tend to pass it on when they are alive and help their kids with deposits anyway.

ukcarper

lisyloo wrote: »

Wouldn't a lot of people at 56 have a small mortgage, and more of them be looking for a smaller home rather than a bigger one?


Could buy a smaller home and holiday home. Of course it's never going to be unwanted, but these are the people at the stage in their lives when they least need the money.

That's the point I'm trying to make, most of the people who receive a inheritance do not use it to buy a property. Depending on age and situation of thier children they might help them to buy property, but imply that it all of it impact housing is not right.

economic

lisyloo wrote: »

How do you KNOW for sure there is a large gift coming your way? and not (for example) going to the toy boy or cats home or in care fees?
I agree with carper this is very poor financial planning.

Maybe if you're very rich and know the amounts will exceed care home fees, but people who are rich tend to pass it on when they are alive and help their kids with deposits anyway.

that's why I said gifts also. goes a long long way, believe me. I am speaking from experience.


of course I would never plan my life around receiving such gifts/inheritances. I have made enough to sustain myself without help. only reason to be gifted money is to avoid inheritance taxes in the future - to try avoid paying anything.

lisyloo

that's why I said gifts also. goes a long long way, believe me. I am speaking from experience.

Your experience is way off the norm.
If I did inherit then it would be £100K or £200K split between up to 6 kids (who are nearly their 50's and mostly paid off their mortgages as well).
I think my experience is more "average" than yours.
In what sense does the "average"/"normal" experience/person not count?
Are you limiting your comment to high-end London families/property? or this this debate a national one?


Are you merely talking about the London high-end property market or nationally?

westernpromise

lisyloo wrote: »

Wouldn't a lot of people at 56 have a small mortgage, and more of them be looking for a smaller home rather than a bigger one?


Could buy a smaller home and holiday home. Of course it's never going to be unwanted, but these are the people at the stage in their lives when they least need the money.

Not in my experience. Quite the opposite.

When I was single I needed nothing. Now I need a four bedroom house and a job for long enough to pay for it. Inflation isn't going to do it for me so I have to.