Is this a mad idea ?

luvchocolate

Murphybear said:

luvchocolate said:

Try housing associations for over 55s  secure tenancies and much cheaper than private 

My husband and I live in an over 60s complex.  It is owned by an award winning Housing Association.  They are a charity and as such don’t rip the tenants off.  We have just had our next years rent/maintenance review and it is slightly less than this years.   You get an AST for the first year then automatically change to an AT which gives you tenure for life if you wish it.  When we moved in 3 years ago they didn’t ask for references or a deposit.  They also welcome housing benefit which many private landlords are reluctant to accept.

We have a massive communal lounge and have lots of social gatherings, sadly curbed because of covid19 but we are officially allowed to use the lounge for coffee mornings as long as we sit 6ft apart.

precovid we had some brilliant parties and we are planning a big “end of restrictions” party.

We are free to do what we want in the property, such as putting up shelves, redecorating etc.  If we wished we could put a brand new kitchen or bathroom.  We chose this deliberately as neither of us has any family and when the first one dies the other won’t be left on their own.  (Sorry if that sounds a bit morbid but we thought about it for a long time)

Same with me..moved in 4 years ago at 64 years I live alone. 
We don't have much communal space except a laundry and coffee room..but the flats are lovely..we are a very supportive of other tenants and never a day passes without seeing and having a chat with a neighbour. 
Best thing I ever did 

Pollycat

What are your retirement plans?

Do you have occupational/private pensions or will you rely on the state pension?

Could you live on the state pension?

Because significant savings - even if earmarked for future rent - will mean you wouldn't be able to claim means tested benefits.

GlasgowExpat2

Sorry for the delay in responding. Thanks for the feedback and maybe on reflection it’s not right. 

I do love my flat (in that it’s light and airy with high ceilings and good sized rooms) but it’s on the third floor (no lift) with very little outside space and in a built up area. 

Lockdown has made me realise I want some outside space (small garden or balcony) and be near somewhere to go for walks. 

I’m not sure I want to stay in Glasgow as it’s so built up. Considering moving to the Wirral to be near friends and the sea. 

£800 is very generous for a 2 bed flat in the Wirral. Once I finish work a 1 bed would be ok. 

I’m mortgage free and have a buy to let flat and a DB pension. 

jaks111

Murphybear said:

luvchocolate said:

Try housing associations for over 55s  secure tenancies and much cheaper than private 

My husband and I live in an over 60s complex.  It is owned by an award winning Housing Association.  They are a charity and as such don’t rip the tenants off.  We have just had our next years rent/maintenance review and it is slightly less than this years.   You get an AST for the first year then automatically change to an AT which gives you tenure for life if you wish it.  When we moved in 3 years ago they didn’t ask for references or a deposit.  They also welcome housing benefit which many private landlords are reluctant to accept.

We have a massive communal lounge and have lots of social gatherings, sadly curbed because of covid19 but we are officially allowed to use the lounge for coffee mornings as long as we sit 6ft apart.

precovid we had some brilliant parties and we are planning a big “end of restrictions” party.

We are free to do what we want in the property, such as putting up shelves, redecorating etc.  If we wished we could put a brand new kitchen or bathroom.  We chose this deliberately as neither of us has any family and when the first one dies the other won’t be left on their own.  (Sorry if that sounds a bit morbid but we thought about it for a long time)

Pm. Sent..

Savvy_Sue

GlasgowExpat2 said:

Sorry for the delay in responding. Thanks for the feedback and maybe on reflection it’s not right. 

I do love my flat (in that it’s light and airy with high ceilings and good sized rooms) but it’s on the third floor (no lift) with very little outside space and in a built up area. 

Lockdown has made me realise I want some outside space (small garden or balcony) and be near somewhere to go for walks. 

I’m not sure I want to stay in Glasgow as it’s so built up. Considering moving to the Wirral to be near friends and the sea. 

£800 is very generous for a 2 bed flat in the Wirral. Once I finish work a 1 bed would be ok. 

I’m mortgage free and have a buy to let flat and a DB pension. 

I remember from my very first house purchase one of the first things in the Which Guide: you can change almost EVERYTHING about a house or flat - except its location. So if you don't want to be in Glasgow, moving sounds like a plan. 

Plus recognising that a 3rd floor flat with no lift may not be ideal as you get older is not a mad idea, it's very sensible. 

But I'm still not sure why you'd rent rather than buy. It's not just the rent, it's the service charges - especially if you look at apartments with lifts (although to be fair if you BUY such a flat there will be ongoing service charges). 

When you say you'd be OK with a 1 bed flat once you finish work, what timescale are you working to? You've got another 10 years plus before your STATE pension kicks in, but do you intend to leave work much sooner than that? 

One thing you could consider is moving before you finish work: I know you've got friends in the Wirral but it might make the transition easier. And I say this partly because I don't think moving gets any easier as the years go by - although I do absolutely dread the idea myself, and I know not everyone feels that way - so doing so sooner rather than later is always worth considering. I've seen too many people get to the stage where it is beyond impossible, and they can end up trapped in a house which is completely unsuitable.  

danjackson2021

GlasgowExpat2 said:

I’m 56 and live in a 3rd floor tenement flat worth approximately £250k.  Love my flat, though soundproofing not great
Considering selling my flat and renting. Calculated that the proceeds would allow me to rent a property for £800 p/month for 26 years. 

After a decade or so your currency will have seen massive devaluation 

[Deleted User]

Personally I would not give up the security of owning my own home. If I were you, I would sell both properties and buy myself something in an area I liked with a garden and be mortgage free. Any monies  over I would save or invest for my future, after making the new place comfortable for myself. What is your pension provision? Being mortgage free how much would you need to live? Could you retire or take a low stress part time job? You have lots of choices that do not involve selling your flat and renting for life. Take a look at the thread on this board entitled ‘How much to live on?’. It may well help you with your decision. Best wishes.

PennyForThem_2

Also think seriously how outgoing you are - would you really like to live in an over 60s community as Murphybear does?  

For me it would be a nightmare.  

missile

Maybe test the water? Rent a property in the Wirral to stay in for weekends and holidays. 

Phrygian

Invest 60% of your £250k in VWRL and at, say 6%, you'd get approx £750 a month for rent. And you'd still have £10k left over!

Man-maths, granted - but something to consider.