Retirement looming - Ready to sell up - Downsize or rent?

westv

I'm not sure of the benefit of selling a house to buy an annuity to fund the rental of another house.

Stubod

westv said:

I'm not sure of the benefit of selling a house to buy an annuity to fund the rental of another house.

..yup, sounds a bit bonkers to me as well......live in your own house and at some point go for equity release to release some money??

Sirlaughalot

[Deleted User] said:

Do you still have a mortgage to pay off with the sale of your house? You say the house is quite large but will will only have £150000 after it is sold? Do you have any other other pension provision or savings? How far are you away from state pension age?
You say you want to be be 'flexible' but with increasing age a secure place to live and enough money to live comfortably may well become more of a priority.
What are you earning now to keep you?

Mortgage paid off 3 years ago. My salary is 24K atm and I have about 30K in savings

DRS1

I can think of one reason to rent instead of buying a new house.  That would be if you don't know where you want to live in retirement.  You could rent for a short time in one area or another until you find the right place.  But then you should buy.

Marcon

Sirlaughalot said:

Hi all,

Looking to retire by the end of the year! I`m single, have no dependents and have about £150000 after the sale of my house and a state pension to live off.
I'm a man of modest means and have no medical problems at the moment, so I would like 15 years of retirement. 10K per annum + pension + interest should be enough, I think. If not, I might do some part-time work.

So, the dilemma for me is whether to take less income and rent out and take the retirement figures stated above.

I'm keen on the rental option as the flexibility offers.

Has anyone had a similar dilemma? it would be great to hear your stories.

How much is your pension going to be? Do you have private pension provision as well as a state pension?

Scallypud

If you have no children have you thought of equity release? 

Bigphil1474

Why equity release now? He doesn't seem to need the money, he does need somewhere to live.

OP, I'd suggest you sell this house, buy a smaller house. You say you will have £150k equity after sale - is there a charge on the property or is that what's it's worth minus sales costs? Living in a rent or mortgage free property is a much better option IMO. That way you don't need as much monthly income. You can always look at equity release later if you get desperate.