Own a house but want to move in with partner - what to do?

propertyrental

I too would advocate either savings and/or investments depending on timeframes (5 years min for investments).

* much less hassle

* more security

* access more easily eg partner moves location/changes job or you split up

Another option is pension contributions which give big tax advantages, but reduced access

phantastico

Thanks everyone, that’s been really helpful

Bookworm105

phantastico said:

Thanks everyone, that’s been really helpful

like people leaving the army who have always been in married quarters on base I think being "out" of the property market when you finally lose job related accommodation is a huge risk in terms of being able to get back into a place you actually want to buy

I think your fear of CGT is misplaced. Whatever you do with your money will be subject to tax, or if you shelter it in an ISA then the growth rate will by lower and more exposed to general inflation 

owning an unused property when on low pay is a recipe for a strained financial situation forever balancing bills on a place producing no income to cover them. Add in the likelihood the bills will increase due to politics, then owning a property you do not let out is a recipe for short term financial misery. The downside of not owning a home is when the job related one goes, you are gambling on being able to afford a place you would want to buy. So your future is down to how much money can you save over the rest of your working life and are you willing to retire to a "cheap" location to buy in 

personally those I know with job related accommodation most certainly own a property to protect their future, but they all are LL of those properties. CGT only applies when you sell and only to the proportion of time that you did not live there. It is not 100% tax rate and historically house price increases have outpaced other forms of investment, particularly if the house is also producing an income.
"Investments" whether in property, or in cash savings, or stocks and shares, are all exposed to loss of purchasing power through general inflation and the vagaries of low (or negative) growth.

As you clearly do not want to be a landlord then fine, owning a property you can't live in will therefore always be a cost for you as it sits empty and would thus be inadvisable. Your impression that a holiday home in Wales will somehow be less hassle is frankly deluded. Wales does not like holiday homes: Second homes for sale in Pembrokeshire treble after council tax hike - BBC News

that said, if you do not want to be a LL then it best that you do not become one, especially if the property being let has sentimental associations as the "old home". Invest your money elsewhere and hope it keeps pace with property costs - but are you really going to save enough to buy a property without a mortgage, bearing in mind when job related has gone, so has the job that affords the mortgage to buy your own home with?

Albermarle

phantastico said:

Albermarle said:

Not sure of your time scales but it might be better to save or invest the money. It will certainly be a lot simpler and a lot less hassle.
You can save 100% safely with a 5 year fixed term savings account or 5 year fixed term ISA, paying over 4%.
If your time scale was over 10 years, a regular medium risk investments fund would have a good chance of making a higher return than that, with only a small risk of any losses.
Or you could do both.

Thank you very much; this is really helpful.  Investments are a completely alien world to me, so I really appreciate your insight.  I'll look into both suggestions - cheers

There is a MSE  savings & investments forum where you can ask questions.
Savings & investments — MoneySavingExpert Forum

Savings are safe, and any money you may need to access within 5 years should be kept as cash savings.
The MSE guide is here.
Savings - All Guides - MoneySavingExpert

In the long term, mainstream investments have historically outperformed savings returns, and the longer you keep the investments the lower the risk of any losses. Over 10 years is normally recommended.

For the middle ground between 5 and 10 years, a mixture of savings and investments is usually better.

mlz1413

Have you done any sums of what rental income would bring in?

For example you can rent your house for £1000pm after agent fees.
Your current mortgage allows gives you permission to rent, new monthly payments are £250pm (you said small mortgage)
£750pm less 20% tax payable on earnings =£600pm
Would bringing your house up to scratch cost more than £12,000?  Because on very very simplistic figures that could be paid back over 2 years. 
As its been your main residence for years the CGT would be lower and I'd assume you would be happy to move back into it as and when retirement means you need a home again.
Plus you can always sell it and move elsewhere in your own timescale.

You haven't said when retirement and loss of the tied accommodation might be, but if it's more than 20 years it's probably worth discussing with a IFA as investments and pensions over long terms could well be less hassle.