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    • SarahLu
    • By SarahLu 16th Apr 19, 2:39 PM
    • 48Posts
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    SarahLu
    Is it wise to buy if you have no heirs?
    • #1
    • 16th Apr 19, 2:39 PM
    Is it wise to buy if you have no heirs? 16th Apr 19 at 2:39 PM
    My partner and I are currently in the process of saving to buy our first home. We have no kids and won't be having any in future. That is certain. Our reason for wanting to buy was mainly to have financial security when we retire in so far as not needing to find money to pay rent each month. We were then going to look at options to release equity or downsize or something similar in order to get a bit of something back from what we have put in over the years, since we will have no kids to leave it to, but that is something we will have to obviously look into when the time comes.

    My question is, is it wise to buy in our circumstances or would it make more sense to rent? Having to find rent when retired does not seem appealing at all and I can't see another way around that other than owning our own home.

    So if we want to live securely in retirement and also have access to at least part of that money if possible, what would be the wisest thing to do in our situation?

    Thanks
Page 1
    • RainbowLaura
    • By RainbowLaura 16th Apr 19, 2:50 PM
    • 201 Posts
    • 39 Thanks
    RainbowLaura
    • #2
    • 16th Apr 19, 2:50 PM
    • #2
    • 16th Apr 19, 2:50 PM
    If I were you then I would definitely buy, for all the reasons you have stated. Surely once you are gone it won't really matter what happens to the house? I may be missing something, but I can't see any reason at all not to buy just because you will have nobody to pass the house on to. I certainly wouldn't want to be renting into retirement if I had any choice at all
    • Niv
    • By Niv 16th Apr 19, 2:51 PM
    • 1,739 Posts
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    Niv
    • #3
    • 16th Apr 19, 2:51 PM
    • #3
    • 16th Apr 19, 2:51 PM
    I bought my first house about 20 years ago and had no intention to have kids. I have a kid now but it has no effect on my opinion regarding if i should own a home for myself (and wife + kid ofc) to live in.


    I just do not see the logic of only buying a house if you have a child to leave it to when you die.
    YNWA

    Target: Mortgage free by 58.
    • SarahLu
    • By SarahLu 16th Apr 19, 2:59 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    • #4
    • 16th Apr 19, 2:59 PM
    • #4
    • 16th Apr 19, 2:59 PM
    I agree, I was just wondering if I was missing something myself, like whether it is cheaper in the long run to rent rather than pay interest on a mortgage plus all the maintenance etc. I'm new to all this and quite clueless so I'm trying to get as much info as I can.

    You're right, it doesn't really matter what happens to the house after we're gone but it would be nice to try and access some of that money seeing as we'd have no kids to leave it to, so I think we would probably be looking at some kind of equity release scheme. But I guess i will worry about that nearer the time.
    • Yellow_mango
    • By Yellow_mango 16th Apr 19, 2:59 PM
    • 90 Posts
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    Yellow_mango
    • #5
    • 16th Apr 19, 2:59 PM
    • #5
    • 16th Apr 19, 2:59 PM
    As others have said, I don’t understand why it would not be wise. What is the downside?

    If you don’t have heirs, all the more reason to do whatever is best for you during your lifetime.
    • SarahLu
    • By SarahLu 16th Apr 19, 3:01 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    • #6
    • 16th Apr 19, 3:01 PM
    • #6
    • 16th Apr 19, 3:01 PM
    I bought my first house about 20 years ago and had no intention to have kids. I have a kid now but it has no effect on my opinion regarding if i should own a home for myself (and wife + kid ofc) to live in.


    I just do not see the logic of only buying a house if you have a child to leave it to when you die.
    Originally posted by Niv
    I just came across this article online and it got me thinking https://www.cnbc.com/2018/02/08/kevin-oleary-unless-you-can-pass-this-test-dont-buy-a-home.html. No idea who the guy is or is credibility, it just got me thinking about my own situation
    • davidmcn
    • By davidmcn 16th Apr 19, 3:03 PM
    • 10,898 Posts
    • 11,998 Thanks
    davidmcn
    • #7
    • 16th Apr 19, 3:03 PM
    • #7
    • 16th Apr 19, 3:03 PM
    Even if you had kids, there's no obligation to leave them a house! Given average lifespans these days, children are quite likely to already be retired (or at least paid off their own mortgages) by the time their parents kick the bucket. I'm not expecting/hoping/needing to inherit anything, I'd prefer my parents to enjoy their retirements (or at least be able to pay for nursing homes etc) rather than feel obliged to leave something for me.

    In any event, people will often have already sold up (or radically downsized) by the end of their lives.
    • SarahLu
    • By SarahLu 16th Apr 19, 3:04 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    • #8
    • 16th Apr 19, 3:04 PM
    • #8
    • 16th Apr 19, 3:04 PM
    As others have said, I donít understand why it would not be wise. What is the downside?

    If you donít have heirs, all the more reason to do whatever is best for you during your lifetime.
    Originally posted by Yellow_mango
    I guess the only downside I can think of is that you plough loads of money into your home over the years and it can turn into a bit of a money pit so would this be a waste if we can't access that money later in life or leave it to our kids. But at the moment I think the security of having no rent payments later in life would outweigh that
    • SarahLu
    • By SarahLu 16th Apr 19, 3:05 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    • #9
    • 16th Apr 19, 3:05 PM
    • #9
    • 16th Apr 19, 3:05 PM
    Even if you had kids, there's no obligation to leave them a house! Given average lifespans these days, children are quite likely to already be retired (or at least paid off their own mortgages) by the time their parents kick the bucket. I'm not expecting/hoping/needing to inherit anything, I'd prefer my parents to enjoy their retirements (or at least be able to pay for nursing homes etc) rather than feel obliged to leave something for me.
    Originally posted by davidmcn
    I completely agree. Do you have any advice about what the other options are if you don't leave your house to your kids?
    • pjcox2005
    • By pjcox2005 16th Apr 19, 3:08 PM
    • 618 Posts
    • 689 Thanks
    pjcox2005
    I think the only difference (and this is generalising) is that those with kids are less mobile (school places) etc. So if for example you are expecting to consistently move (e.g. new jobs, overseas living) then renting may be more beneficial given the costs of purchasing a house.


    If you are looking for one place to stay for life, then buying now and selling (or doing an equity release which is likely to be more costly but perhaps give more security) in old age to free up money may be the better option. Gives security whilst you own the house, and often rental payments are higher than the mortgage interest.
    • AnotherJoe
    • By AnotherJoe 16th Apr 19, 3:11 PM
    • 13,480 Posts
    • 15,937 Thanks
    AnotherJoe
    Do you have any advice about what the other options are if you don't leave your house to your kids?
    Originally posted by SarahLu

    Downsize. Equity release. Sell it and use the money for whatever.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Yellow_mango
    • By Yellow_mango 16th Apr 19, 3:16 PM
    • 90 Posts
    • 75 Thanks
    Yellow_mango
    I completely agree. Do you have any advice about what the other options are if you don't leave your house to your kids?
    I have a plan (dream) to sell everything I own (possibly retaining a property to provide ongoing income) and live my retirement travelling around the world from a suitcase.

    PS - I have kids, but have no particular intention to leave them anything when I've gone. I'm hoping they'll be well established with their own lives by then and need no support from me.
    Last edited by Yellow_mango; 16-04-2019 at 3:18 PM.
    • SarahLu
    • By SarahLu 16th Apr 19, 3:18 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    Downsize. Equity release. Sell it and use the money for whatever.
    Originally posted by AnotherJoe
    If you sold up would you not end up just putting most of it back into renting, assuming you lived for a reasonable time after? But at least you would be getting back the money you have put in over the years whereas currently I'm renting anyway and will never get it back...
    • SarahLu
    • By SarahLu 16th Apr 19, 3:19 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    I have a plan (dream) to sell everything I own (possibly retaining a property to provide ongoing income) and live my retirement travelling around the world from a suitcase.
    Originally posted by Yellow_mango
    Sounds great. Don't think I'll ever be in the position to own more than one property myself
    • ACG
    • By ACG 16th Apr 19, 3:25 PM
    • 18,732 Posts
    • 10,338 Thanks
    ACG
    Another potential reason to buy is that it could fund care if you need it. The council will pay towards it, but having recently been involved with putting my gran in a care home, I can honestly say there are care homes and care homes.

    One we went to see had staff who were miserable, busy and I would not let them look after a goldfish let alone my gran. Thankfully she has a home which can be sold and some savings to pay for one where the staff are nice, friendly, helpful and they actually do things other than put them in front of a TV for 8 hours a day.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • SarahLu
    • By SarahLu 16th Apr 19, 3:29 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    Another potential reason to buy is that it could fund care if you need it. The council will pay towards it, but having recently been involved with putting my gran in a care home, I can honestly say there are care homes and care homes.

    One we went to see had staff who were miserable, busy and I would not let them look after a goldfish let alone my gran. Thankfully she has a home which can be sold and some savings to pay for one where the staff are nice, friendly, helpful and they actually do things other than put them in front of a TV for 8 hours a day.
    Originally posted by ACG
    Yes that's a good point and could really be relevant to us one day with us having no one to look after us!
    • pinkteapot
    • By pinkteapot 16th Apr 19, 3:29 PM
    • 6,357 Posts
    • 8,225 Thanks
    pinkteapot
    Was about to say exactly the same as ACG about care - having a house to sell to fund better care is definitely no bad thing! And with no kids you won't have the "Oh, but then the kids won't get the house" angst.
    • Yellow_mango
    • By Yellow_mango 16th Apr 19, 3:32 PM
    • 90 Posts
    • 75 Thanks
    Yellow_mango
    Sounds great. Don't think I'll ever be in the position to own more than one property myself
    Originally posted by SarahLu
    Oh neither will I. The plan is to pay off the mortgage as quickly as possible, then put all available funds for as long as we can bear to keep working into pensions / savings to provide income in retirement. That, along with any additional income from the house (whether through renting or selling and investing the proceeds), will fund my nomad lifestyle!

    That's the plan anyway. Looking further and further from reality right now, but I'm trying to keep the dream alive!
    • Mutton Geoff
    • By Mutton Geoff 16th Apr 19, 3:34 PM
    • 1,362 Posts
    • 1,523 Thanks
    Mutton Geoff
    I just came across this article online and it got me thinking https://www.cnbc.com/2018/02/08/kevin-oleary-unless-you-can-pass-this-test-dont-buy-a-home.html. No idea who the guy is or is credibility, it just got me thinking about my own situation
    Originally posted by SarahLu
    Completely irrelevant to the UK market.


    I am approaching retirement, never married, never had/wanted kids. I have owned my own property since I was 19. I would not have done it any other way.


    Until you live in a home that you own, you will not understand the immense feeling of security it gives you (even if you struggled with a 15% interest rate mortgage).


    One of my relatives sold out when their kids left home. Now they are sick of being pushed from one rented to the next as landlords sell up or increase rents to an uncomfortable level.


    To consider not to buy for a legacy benefit only is daft. In my own example, I will be downsizing on retirement and the equity released will be equivalent to over 15 years net salary. All tax free. Leave your house to a worthy cause but don't delay your purchase decision for something you saw on the internet that is not even relevant to the UK market.
    Compensation/Refunds - £4,655 | Stooz Profits - £7,636 | Quidco - £4,060 | Tax Avoidance - £107,000
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    • SarahLu
    • By SarahLu 16th Apr 19, 3:42 PM
    • 48 Posts
    • 3 Thanks
    SarahLu
    Oh neither will I. The plan is to pay off the mortgage as quickly as possible, then put all available funds for as long as we can bear to keep working into pensions / savings to provide income in retirement. That, along with any additional income from the house (whether through renting or selling and investing the proceeds), will fund my nomad lifestyle!

    That's the plan anyway. Looking further and further from reality right now, but I'm trying to keep the dream alive!
    Originally posted by Yellow_mango
    Sounds great, I hope it works out for you. I've left it a bit later than I should have to get on with these things but on the flipside I've done loads of travelling in my younger years. Can definitely see myself doing something similar to you in the future though
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