Hundred grand in 23 years

Doshwaster

sparkychris wrote: »

I rule out pensions because the idea that my money is inaccessable if a disaster should occur is really scary...

On the other hand if disaster does strike then your pension pot is protected from anyone who may be wanting money off you.

Fatbritabroad

Another option if you do buy say 3 bedroom terrace is the rent a room scheme. No stamp duty implications and can rent two rooms for 7500 a year tax free.

Fatbritabroad

In total I should say not each mores the pity

jamie_02

Have you factored in inflation? And have you factored in how you're going to pay for things if you live to 100, especially if the last 30 years of that is in an old people's home?

BananaRepublic

atush wrote: »

I agree, you are coming around. And if the terrace you buy to rent is your only home, you will save some of the extra costs BTL investors face now. Basically, you need somewhere (not isolated) to live one you are old, and privately renting is very expensive for pensioners and insecure as you could be told to leave at any time.

Pensions really are the way forward for you. Are you employed or self employed?

PS, you c an continue to watch your 20K grow, if you keep putting it in high interest accts available, and consider putting half in a S&S isa for long term growth.

If you are suggesting that owning only one house as BTL has tax advantages, I think that is incorrect. If you do not live in it, then you pay CGT when you sell, as well as income tax on the rent. Owning your own home is perhaps the best most tax efficient investment out there.

Renting a home without good reason is utter madness in my view. It is one route to an impoverished old age.

shortcrust

I'd rather own a tiny terraced house than worry about paying rent when I'm too old to work.

Anthorn

Why confine yourself to a hundred grand. Follow the 80's example: Have a good idea, start with capital of £500, double your capital just 11 times and you've got over a million

You won't get very far just saving. Not these days anyway.

atush

BananaRepublic wrote: »

If you are suggesting that owning only one house as BTL has tax advantages, I think that is incorrect. If you do not live in it, then you pay CGT when you sell, as well as income tax on the rent. Owning your own home is perhaps the best most tax efficient investment out there.

Renting a home without good reason is utter madness in my view. It is one route to an impoverished old age.

You are right on CGT, but forgetting other taxes such as the increased stamp duty for those who own more than one home. you re also forgetting that is you move into a home that was formerly rented then CGT is reduced.

I dont disagree owning your own home is better- i suggested that earlier in t his thread. The OP does not want to move from their rented home where they live (and cannot afford to buy what they want there apparently), so was suggesting some alternatives to renting privately in old age.

atush

ViolaLass wrote: »

You can also watch it grow by putting it in a pension and reading the statements every year.

Apart from t he fact they cant put it all in and still have an emergency cash fund? Remember, this is a person who just crawled out of debt (and well done for that).

jdw2000

atush wrote: »

You are right on CGT, but forgetting other taxes such as the increased stamp duty for those who own more than one home. you re also forgetting that is you move into a home that was formerly rented then CGT is reduced.

I dont disagree owning your own home is better- i suggested that earlier in t his thread. The OP does not want to move from their rented home where they live (and cannot afford to buy what they want there apparently), so was suggesting some alternatives to renting privately in old age.

He's already 41. He needs to buy now. How old do you need to be before you can't get a mortgage at all? Then he won't have the luxury of a choice in the matter.