..
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
In the long run, could home ownership = renting?
Collapse
X
-
-
Originally posted by Jeff Maginty View PostDoes this highlight the folly of "My property is my pension"?merely at clientco for the entertainment -
Originally posted by Jeff Maginty View PostHow realistic is this for a possible future scenario?...
Young person struggles desperately to get on the 'housing ladder', busts a gut to pay the huge mortgage year after year, taking great comfort in the fact that he is now a 'home owner'. 10 years later he moves from the 1 or 2-bed flat or terraced-house to a 3-bed semi, and remortgages to get the extra money (even a 3-bed semi costs the earth nowadays!).
Years later, as young person is now an old person and facing retirement, he realises he has little or no pension. Downsizing isn't really an option because his house is not that big and wouldn't release enough cash after meeting the cost of a smaller property. So he ends up doing one of those dodgy 'equity-release' schemes. So in the end, his home is not really his anymore, because the equity-release firm now owns a large (or even majority) steak in it.
Ergo, home-ownership = renting!
Does this highlight the folly of "My property is my pension"?What happens in General, stays in General.You know what they say about assumptions!Comment
-
Originally posted by Jeff Maginty View PostHow realistic is this for a possible future scenario?...
Young person struggles desperately to get on the 'housing ladder', busts a gut to pay the huge mortgage year after year, taking great comfort in the fact that he is now a 'home owner'. 10 years later he moves from the 1 or 2-bed flat or terraced-house to a 3-bed semi, and remortgages to get the extra money (even a 3-bed semi costs the earth nowadays!).
Years later, as young person is now an old person and facing retirement, he realises he has little or no pension. Downsizing isn't really an option because his house is not that big and wouldn't release enough cash after meeting the cost of a smaller property. So he ends up doing one of those dodgy 'equity-release' schemes. So in the end, his home is not really his anymore, because the equity-release firm now owns a large (or even majority) steak in it.
Ergo, home-ownership = renting!
Does this highlight the folly of "My property is my pension"?
Usually when people use property for a pension they mean 3 or 4 or 100 other properties that are paid off and rented out. This brings in an decent income equivalent to a pension, plus you own the properties which will rise in price, so can sell one for a lump sum if you fancy buying loads of stuff.
The alternative paying into a pension for years, letting some fund manager bet it on black leaving you with little or nothing, meaning you end up in some council home in a bad area with chavs intimidating you every time you leave the house.Last edited by russell; 8 June 2011, 15:27.Comment
-
Nope not on your nelly.
Generation rent
Massive demand for rentals.
Not in the same league as these guys, but i've got 4 houses (excluding main residence), no mortgages on them, no debt.
If you are contracting, you will surely be able to plough a large percentage of your take home into property and its the only option as far as I can see.
No need for this equity release nonsense.Comment
-
Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment