Buy a house or invest or Lifetime ISA?

masonic

ElephantBoy57 said:

masonic said:

The OP is looking to open a LISA. Unless they have a serious misunderstanding of the eligibility criteria, it is safe to assume they are under the age of 40. Someone in their 20s or 30s should not use a SIPP to save for a house.

dreamvendour is looking to buy a house in "say 15-20 years", perhaps when their mother passes away.

I take from that, that they are not a young couple.

I will be using some money from my SIPP to perhaps pay off my mortgage of purchase a vehicle.

You are assuming the OP's age, and the death of their mother is the proposed reason they will have to move out. Several other possibilities exist, some quite a bit more likely. Perhaps the OP will come back and confirm their age in due course.

I have simply pointed out a few facts, which you are ignoring in order to continue peddling your SIPP option. Have you ever heard the phrase "one man's medicine is another man's poison"?

Please point out any of the following statements you disagree with:

1. The OP stated they were considering opening a Lifetime ISA
2. To open a Lifetime ISA, you must be under 40 years of age
3. It would generally be a bad idea for someone under the age of 40 to use a SIPP to save for a house
   
4. It would be irresponsible to advise someone who may be under the age of 40 to use a SIPP to save for a house without pointing out (3)
   
5. It would be irresponsible to advise anyone to use a SIPP to save for a house without considering their income and marginal rate of tax now and in the future
   

ElephantBoy57

masonic said:

I have simply pointed out a few facts, which you are ignoring in order to continue peddling your SIPP option. Have you ever heard the phrase "one man's medicine is another man's poison"?

I am not continuing anything, I am telling you my reasoning. You have clearly stated for the OP that a SIPP is not suitable if this couple is younger than my assumption.

masonic

ElephantBoy57 said:

masonic said:

I have simply pointed out a few facts, which you are ignoring in order to continue peddling your SIPP option. Have you ever heard the phrase "one man's medicine is another man's poison"?

I am not continuing anything, I am telling you my reasoning. You have clearly stated for the OP that a SIPP is not suitable if this couple is younger than my assumption.

...or if their tax situation or income in the future differs from your own.

If you cash in a SIPP, then beyond the PCLS it is treated as income for tax purposes in the tax year it is drawn down. If you happen to still be working at that time, you could end up paying more tax on the withdrawal than the tax relief you got on the way in.

Also, if you are correct and it will be the death of the mother that will trigger the house purchase, I don't wish to be morbid, but there are no guarantees any of us will survive another 15-20 years, so the money could be trapped at the point it is needed.