Can you imagine the destruction in the UK if the property market crashed

James_Green_1982

andrewf75 wrote: »

I don't think you can to put it bluntly. Unless you own your home you can't retire simple as that.

It works in other countries because rents are relatively low and pension contributions are probably higher, but here with sky high rents meaning that those stuck renting are highly unlikely to have decent pensions, its a ticking timebomb.

Lots of pensioners rent their homes and get Pension Credit / LHA.
But without PC/LHA - I'm not sure how it works.

James_Green_1982

lisyloo wrote: »

I’ve always found maintenance to be quite low.
E.g. in my current house I’ve spent about £2k on a new boiler after 14 years, so I think this cost is often exaggereated.

But don’t forget the much larger cost of a free place to live.





Being fee to live in is fairly major though, don’t you think?



How would this work? as we’d have no private landlords if it’s not profitable.
Property prices would probably fall.
I still can’t see how it could work out better to rent over long term as I’m hoping for 45 years rent free.
I think it’s highly unlikely but as I said those of us with property can sell it whenever we like (yes we might have to take a haircut but on an owned propety it’s 100% profit).
Property shouldn’t be regarded as liquid but neither is it permanent, so us house owners can change our strategy if we need to.

I think what you are saying just isnt feasible when I consider my home is now rent feee for 45 years (estimated).

As things stand today, you're correct.
But what if we went back to the system of tax on imputed rent or high property taxes for owners, but no tax for tenants? Or compulsory low rent caps etc?

There would be property owners with sitting tenants, but they could only sell to other landlords. So yes, property values would drop. The landlords would take a hit. Maintenance on property would become an issue.

You don't have to look that far back in history to see these circumstances - although they do seem unlikely when viewed from recent times.

lisyloo

James_Green_1982 wrote: »

Lots of pensioners rent their homes and get Pension Credit / LHA.
But without PC/LHA - I'm not sure how it works.

I said comfortable retirememt by which I mean having a car, foreign holidays maybe the odd spa visit.

Living on benefits is subsistence not a comfortable retirement.

I think that’s very hard to achieve unless you have a gold plated pension which is a minority going forward.
It hard to achieve full stop but it is possible if you plan and own a property I.e. don’t pay rent or mortgage.

James_Green_1982

lisyloo wrote: »

I said comfortable retirememt by which I mean having a car, foreign holidays maybe the odd spa visit.

Living on benefits is subsistence not a comfortable retirement.

I think that’s very hard to achieve unless you have a gold plated pension which is a minority going forward.
It hard to achieve full stop but it is possible if you plan and own a property I.e. don’t pay rent or mortgage.

A lot also depends on family and other savings / assets etc.
At present the assets or wages of children are not taken into account when assessing a parent for benefits etc. That could well change in the future though.

I own my own home outright, but I'll probably look to rent somewhere when I retire. Otherwise I risk tying up my spending money in a house that may be taken for care fees etc.

phillw

lisyloo wrote: »

I’ve always found maintenance to be quite low.
E.g. in my current house I’ve spent about £2k on a new boiler after 14 years, so I think this cost is often exaggereated.

I've been in mine 13 & I'm saving up to gut the place. New kitchen, bathroom, carpets, decorating, boiler, board out loft, replace some double glazing. By the time I've finished I think I'll be breaking even in terms of how much mortgage interest and maintenance I've paid compared to how much it's worth. So I've not really gained anything on that yet. How it will perform through my retirement is anyone's guess, historically one would expect it to keep going up.

Instead I could sell the house and invest the money, then if I could achieve 8% returns then I would make enough to rent somewhere and live comfortably without working. I haven't because I'm risk averse.

Exodi

James_Green_1982 wrote: »

I own my own home outright, but I'll probably look to rent somewhere when I retire. Otherwise I risk tying up my spending money in a house that may be taken for care fees etc.

That's so strange, I was just sitting there thinking "corr, I wish I could pay for James Green's care" and I see this post where you've made my dream a reality, thank you. Enjoy splashing your cash, I better get saving.

James_Green_1982

Exodi wrote: »

That's so strange, I was just sitting there thinking "corr, I wish I could pay for James Green's care" and I see this post where you've made my dream a reality, thank you. Enjoy splashing your cash, I better get saving.

Why would you be paying for my care? That makes no sense.

phillw

Exodi wrote: »

That's so strange, I was just sitting there thinking "corr, I wish I could pay for James Green's care" and I see this post where you've made my dream a reality, thank you. Enjoy splashing your cash, I better get saving.

I expect free NHS care and whatever remains of social care to disappear within the next two decades now that we're leaving the EU, if you can't fund it yourself then you'll be left to die somewhere. By that point you'll be too weak to vote.

Exodi

James_Green_1982 wrote: »

Why would you be paying for my care? That makes no sense.

I thought it was kind of obvious... if you're not willing to pay for your own care.... someone else will have to pay for it... you know what, never mind, Enjoy making it rain! :beer:

phillw wrote: »

I expect free NHS care and whatever remains of social care to disappear within the next two decades now that we're leaving the EU, if you can't fund it yourself then you'll be left to die somewhere. By that point you'll be too weak to vote.

Amen! :T

lisyloo

James_Green_1982 wrote: »

Otherwise I risk tying up my spending money in a house that may be taken for care fees etc.

If that really is you strategy then I would suggest making sure you live somewhere that there are decent quality care homes within the LA rate.

In our area BANES/south Glos they fall into the “over my dead body” category.