Cash buyer near completion... brexit housing crash fears..?

Herzlos

lisyloo wrote: »

Not sure why this site isn't letting me say property hawk and account.

I think you must have missed the o in account: ac!!!!. The swear filter is getting carried away.

Out,_Vile_Jelly

Being mortgage-free at your age is a tremendous opportunity. You can review what you want from your career with the flexibility to consider going part time, retraining, doing something more interesting but less well paid, start up a business etc. You can rent the property out and go travelling for a year if you feel tied down.

As long as you're happy with the house and area its notional value is irrelevant to your life.

lisyloo

PokerPlayer111 wrote: »

Oh yeah for sure, as Herloz said you might need to make greater than around 7% to break even - if that is correct.

I dont think you can get 7% anywhere safely/cautiously or even moderately.
I am forecasting 7% for my SIPP but it's invested aggressively and the forecast is just for my personal interest and I'm also aware it might not be acheived (in which case I'll work until 56, 57, 58 etc.)

Mnd

I agree, if this could be you forever home, buy it

Herzlos

You'd be paying tax on investment income at that level too, I think, so you'd probably need to be getting 9-10% back, and you'll only get that from something high risk.

lisyloo

Herzlos wrote: »

You'd be paying tax on investment income at that level too, I think, so you'd probably need to be getting 9-10% back, and you'll only get that from something high risk.

Crashy is always going on about property being a risk, but other investments are risky too, including cash which has a shortfall risk i.e. gets eroded in real terms against inflation.
Putting it under the mattress has risks - theft, damage and inflation.


So what else are you going to invest in?, is a very pertinent question.


For me property ownership is an important element in retiring early i.e. not having the mortage/rent element in your outgoings.
Replacing that over 35 years is going to be expensive.


So £1000 per month (assuming 4%) needs an extra £300K at retirement.

Crashy_Time

lisyloo wrote: »

Post your evidence please

Rents are a mixed picture and transactions are flat according to my (quick) research

https://www.!!!!!!!!!!!!!!!!!!!!/magazines/are-rents-falling/


property hawk .co.uk


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/749419/UK_Tables_Oct_2018__cir_.pdf

https://www.propertyindustryeye.com/uk-rents-are-heading-for-a-full-year-of-declines-says-deposits-service/

Crashy_Time

lisyloo wrote: »

Crashy is always going on about property being a risk, but other investments are risky too, including cash which has a shortfall risk i.e. gets eroded in real terms against inflation.
Putting it under the mattress has risks - theft, damage and inflation.


So what else are you going to invest in?, is a very pertinent question.


For me property ownership is an important element in retiring early i.e. not having the mortage/rent element in your outgoings.
Replacing that over 35 years is going to be expensive.


So £1000 per month (assuming 4%) needs an extra £300K at retirement.

Like the massive inflation we have had over the last ten years you mean?

lisyloo

Crashy_Time wrote: »

https://www.propertyindustryeye.com/uk-rents-are-heading-for-a-full-year-of-declines-says-deposits-service/

At odds with other data (as the link you’ve provided says).

lisyloo

Crashy_Time wrote: »

Like the massive inflation we have had over the last ten years you mean?

Yes exactly that. It’s less than savings rates so an erosion in real terms which over decades will accumulate.