Sanity Check

SouthCoastBoy

Thks for the replies, always good to get different perspectives. 

I think my wife is set on the house, I have listed pros and cons, but she is very keen  me not so bothered, our current house is fine.

The good news is we aren't moving far, if we do move, about 15 mins drive from current house so we will still be in the same area, slightly closer to my eldest daughter who will be about a mile away.

From my perspective I'm seeing the expenditure as a change in asset class, with the caveat it will cost around 35k in legal fees, stamp duty etc. But over the longer term that should be recouped as the return on the house will potentially be higher than the return on the cash.

ali_bear

You'll have moved some of your liquid assets into one of the most solid investments there is in this country - your own residential property. 

CruisingSaver

Just to add another perspective. Can the house your wife wants be future proofed? Is there the ability to create a downstairs bedroom and bathroom? Is the staircase suitable to install a stairlift if required?

Moving is stressful enough never mind doing it at the age of 80 plus.

SouthCoastBoy

Yes we could turn the study into a bedroom if required. There is a downstairs toilet. 

My father in law moved at around 85ish it wasn't too bad. We helped and also got removal men etc.

The current owners don't seem phased by moving, at a guess they are early to mid 80s. Tbh if you're immobile doesn't matter where you are, you still can't move. The only shopping I ever do is groceries which obviously can be done online.

GunJack

For Flip's Sake!!!! If you're worrying about moving and retiring on that massive pile of cash, I'll swap with you in an instant!!

..all cheques, account transfers etc. to GunJack, the not so rosy Northern half, UK... (please )

Cus

SouthCoastBoy said:

We are considering moving house, which will result in a net spend 300k, I will finally retire at the same time. So would just like to sanity check my figures and get opinions on whether people think I'm over stretching myself.

Currently 60 years old, wife 58 (she will retire in two years time)

Current position
560k Cash
311k S&S ISAs
332k SIPP
567k Company Pension (DC)
Wife 10k DB pension at 60, reduces by 1700 at 65, max 5% increase per annum
Wife LGPS 5k DB pension at 67
2 state pensions fully funded.
 
The house move will be approx 300k once all costs are factored in. Then I have set aside 60k for upgrades once moved in.

Due to bigger house I think our new costs will be around 3000 per month as opposed to the current 2650.

I'm concerned I am slightly over stretching myself, do you think that is the case, or should I be ok? I would be interested in any thoughts.

I think we have been here before..
Using any recommended planning tools shows you have enough money.
Your issue seems to be irrational fear my friend. No amount of reassurance will help, it probably makes it worse. Jump.

FIREDreamer

Take PCLS from DC and SIPP of £900k - £225k towards house purchase.

Buy a JL index linked annuity with the £675k which might be £30k.

Job done.

jimi_man

Hi. We are doing similar. House has just been sold (fingers x'd stays that way) and we will move away (100+ miles). Similar sized house to what we have now (4-5 bed detached in Surrey) but in a completely different area. I'm 60, recently retired and obviously we'll be saddled with £30-40k moving costs. 

We might have to move again in the future, but then again we might not. It's not high on our priority list and there are other ways to cope with old age than moving into a bungalow (which I'd never do on principle) or downsizing in some form. 

I say go for it. Financially you can easily afford it, and if it's something that you (that's the inclusive 'you' so you, and Mrs SCB) want to do because you feel it will improve your life (and that's why you're doing it) then do it. 

Albermarle

jimi_man said:

Hi. We are doing similar. House has just been sold (fingers x'd stays that way) and we will move away (100+ miles). Similar sized house to what we have now (4-5 bed detached in Surrey) but in a completely different area. I'm 60, recently retired and obviously we'll be saddled with £30-40k moving costs. 

We might have to move again in the future, but then again we might not. It's not high on our priority list and there are other ways to cope with old age than moving into a bungalow (which I'd never do on principle) or downsizing in some form. 

I say go for it. Financially you can easily afford it, and if it's something that you (that's the inclusive 'you' so you, and Mrs SCB) want to do because you feel it will improve your life (and that's why you're doing it) then do it. 

The location of a property when you are older, is probably more important than whether it is one storey or not.
For example no steep slope/driveway or steps to the entrance, and not 50 miles away from the nearest hospital ( just as two examples) 

DT2001

We have less than you and are planning on spending more however I am convinced we have enough to gift capital or initially excess income.

 I am 5 years older than you and am aiming to move once more but by self building. It maybe stressful at times but if it’s what you want I think it’s worth it. 

Enjoy your retirement and new home.