Celebrate 15 long years today on HPC

worried_jim

Crashy_Time wrote: »

Or maybe you can`t......
https://www.yorkshireeveningpost.co.uk/property/property-news/property-transactions-fall-21-year-year-areas-2017/

I'm the opposite, I plan on upsizing. Will sell my two bed flat in Brighton and move back to the Midlands and buy a 3/4 detached house and a place in the Med, all hopefully in my mid fifties. All because I choose to pay £550 a month mortgage for 25 years rather than £1k rent and put the difference into a pension scheme which will allow me to cut down on work in ten years time.

Some by luck (100% profit on my first house in under three years), some by seeing the bigger picture, but mostly listening to my elders and those that are far cleverer than me by watching what other people did to fund their lifestyles- if they can do it then so can I.

Don't know what the next ten years will bring but I've positioned my pieces on the chess board as best as I can. Absolutely love it at work when one of my colleagues gets onto the property ladder as I know its the best financial decision they'll probably ever make and with it being the S.E they cant lose.

ukcarper

lisyloo wrote: »

Personally I think this is major.
I'm expecting to spend about 40 years living rent free.
That's a large help towards a comfortable retrirement.


Also if you have a large or expensive home you can downsize to free up cash or buy a second property on the continent or a flat near parents etc. etc.

I paid off my mortgage almost 10 years ago so have been living rent free in a property that would rent for in excess of £1400 a month. I could not afford to live there if I was paying rent infact I would find paying rent on smaller property difficult.

I always though I would downsize but now it is a possibility I don't think I will as I have a reasonable pension and am happy with my lifestyle.

lisyloo

I always though I would downsize but now it is a possibility I don't think I will as I have a reasonable pension and am happy with my lifestyle.

You might in your late 70's early 80's when the cleaning and garden get a bit much or you need carers on site etc. I'm guessing that's some way off, but old age is the one thing that is inevitable for all of us if we carry on living.


Our parents downsized at 74, but they were disabled so earlier than some.


I honestly don't know how our lives are going to pan out (for example one set of parents will probably not be around).


One possibility is buying a small place near my Dad if he needs help in later life, but he could pre-decease his wife, who knows??


One thing I do know is that it's better to have options and if you have a large/expensive house then that buys you options once you dispense with the need to be within commuting distance of somewhere.

ukcarper

lisyloo wrote: »

You might in your late 70's early 80's when the cleaning and garden get a bit much or you need carers on site etc. I'm guessing that's some way off, but old age is the one thing that is inevitable for all of us if we carry on living.


Our parents downsized at 74, but they were disabled so earlier than some.


I honestly don't know how our lives are going to pan out (for example one set of parents will probably not be around).


One possibility is buying a small place near my Dad if he needs help in later life, but he could pre-decease his wife, who knows??


One thing I do know is that it's better to have options and if you have a large/expensive house then that buys you options once you dispense with the need to be within commuting distance of somewhere.

I agree but if you are still reasonably active it is very difficult to find a suitable property to downsize to, there are properties but the amount I would have after paying fees is not enough to make me want to move. I could move away but I value staying close to my family and friends as more important.

phillw

ilovehouses wrote: »

The biggest mistake is to decide owning isn't cost effective based on today's rent vs the first mortgage payment of a 25 year term. I also don't get why the 'bears' don't have the vision to separate the interest and capital repayment parts of a mortgage.

Yes, never compare "rent" to "mortgage payment".

You need to compare "rent" to

searches+conveyancing+stamp duty+removal fees+interest+maintenance+estate agent fees+difference between the buying cost+selling cost

The capital repayment is essentially a savings account.

When calculating "rent" you should include any fees, lost deposits, removal fees. With renting you're likely to move more often.

ukcarper wrote: »

I agree but if you are still reasonably active it is very difficult to find a suitable property to downsize to, there are properties but the amount I would have after paying fees is not enough to make me want to move. I could move away but I value staying close to my family and friends as more important.

And the people building specific retirement homes are pricing them way higher than they should, because they see old people as a cash cow.

lisyloo

And the people building specific retirement homes are pricing them way higher than they should, because they see old people as a cash cow.

It's not obligatory to buy a mccarthy & stone :-) and things may well be different in 10 or 20 years time.

Although there is and will continue to be a premium on bungalows.


Our demographic will mean that there will be demand.
Personally I'm within the very highest part of the chart
https://www.indexmundi.com/united_kingdom/age_structure.html

lisyloo

ukcarper wrote: »

I agree but if you are still reasonably active it is very difficult to find a suitable property to downsize to, there are properties but the amount I would have after paying fees is not enough to make me want to move. I could move away but I value staying close to my family and friends as more important.

I agree.
If you are active and have a social circle then you probably want to stay where you are.


As you get older things will change. You family and friends may move away, either to care or be cared for or perhaps be closer to their grandchildren. You own health/mobility may decline in later years and if you live a long time it's certain some of your friends an family will die.


I am 50 and out parents downsize at 74, so some time away.


I still believe it's much better to have options than be paying rent in retirement.

ukcarper

lisyloo wrote: »

I agree.
If you are active and have a social circle then you probably want to stay where you are.


As you get older things will change. You family and friends may move away, either to care or be cared for or perhaps be closer to their grandchildren. You own health/mobility may decline in later years and if you live a long time it's certain some of your friends an family will die.


I am 50 and out parents downsize at 74, so some time away.


I still believe it's much better to have options than be paying rent in retirement.

As you say it suits some people to downsize and not others, but the joy of owning your own home is that you have the choice.

ukcarper

phillw wrote: »

Yes, never compare "rent" to "mortgage payment".

You need to compare "rent" to

searches+conveyancing+stamp duty+removal fees+interest+maintenance+estate agent fees+difference between the buying cost+selling cost

The capital repayment is essentially a savings account.

When calculating "rent" you should include any fees, lost deposits, removal fees. With renting you're likely to move more often.



And the people building specific retirement homes are pricing them way higher than they should, because they see old people as a cash cow.

Not all are priced high some are price fairly cheap, but it's the ongoing costs and difficulty to sell that put many people off.

Crashy_Time

Herzlos wrote: »

You're going to have to walk me through that logic. You can't downsize because transactions are down?
That just means you might have to settle for a lower offer or wait a bit longer.

Transactions wouldn`t be down if the majority thought like that.