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Well, I am well and truly lost. What the hell does this mean!

http://citywire.co.uk/money/osborne-unveils-lifetime-isas-for-the-next-generation/a891672?ref=citywire-money-latest-news-list

The money saved can be used to save for a first home worth up to £450,000. As the Lisas are linked to individuals not a particular property, two people buying a home together can each benefit from Lisa.

Is this anywhere in the country? Has the £3000 bonus towards a house been increased? It's going to take a while to get my head around this!

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Yes - it's basically more borrowed money to give to the better off to buy houses. Every under 40 will be eligible to get a £1k bonus on every £4k they save a year but it seems it can only be withdrawn early - before 60? - if you buy a house with the funds otherwise no bonus.

No means test at all - just a free handout to the already better off funded by cutting benefits to the disabled.

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I think I may have to capitulate and take up this deal next year.

I'll be 5 months away from turning forty when this comes in. :blink:

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Its basically an extra £1k for anyone who can save £4k a year... the market will simply incorporate this and increase prices accordingly over the next 20 years. The government will probably own about 20% of all housing stock by then! No need for council housing when they share a portion of every house sold.

FYI - anyone with any mathematical ability will tell you that without compounding this will be 2 odd percent a year of interest. Rich people invest in productive assets like companies...poor people think about saving money in bank accounts

Edited by katchytitle

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Yes - it's basically more borrowed money to give to the better off to buy houses. Every under 40 will be eligible to get a £1k bonus on every £4k they save a year but it seems it can only be withdrawn early - before 60? - if you buy a house with the funds otherwise no bonus.

No means test at all - just a free handout to the already better off funded by cutting benefits to the disabled.

If you don't use it to buy a house, or take it out before you're 60 then you lose all accumulated bonus, all accumulated interest, and get hit with a 5% penalty charge. It's a pig in a poke.

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No means test at all - just a free handout to the already better off funded by cutting benefits to the disabled.

Yes all those better off people in their 20s and 30s who are working, paying rent and trying to save to buy a house. What lucky poeple they are.

Come on, you've been on this site long enough to know better.

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Yes all those better off people in their 20s and 30s who are working, paying rent and trying to save to buy a house. What lucky poeple they are. Come on, you've been on this site long enough to know better.

I am talking about better off under 40s - the few that cAn afford to save £4k a year and buy a house at current prices. Yes the richer ones!

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Yes all those better off people in their 20s and 30s who are working, paying rent and trying to save to buy a house. What lucky poeple they are.

Come on, you've been on this site long enough to know better.

Poor mugs, only way for them to get it before 60 is to pay crazy HPI prices for bricks and mortar, or get hit with a 5% charge. Another prop up the housing market scam.

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I do wonder when the Chancellor will launch a scheme to help people who are over 40 to save up to buy their first home. The help to die scheme perhaps - or the just shoot yourself as you have the missed the boat ISA?

In a sense isn't this just another form of pension tax relief - except you can draw it down before 60 to buy a house and higher rate taxpayers only get 25 per cent relief - a sign of things to come? The budget document also mentions the government will consider allowing people to draw down the funds for other major lifetime events - weddings perhaps or the birth of a first child?

Edited by MARTINX9

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Could I save the 4k year

Sell my house

Then buyer a bigger house with savings and sale of old house and not be hit by penalty

I'm pretty sure you can only use it either as a kind of second-rate pension or alternatively as part of the payment for your first house.

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I do wonder when the Chancellor will launch a scheme to help people who are over 40 to save up to buy their first home. The help to die scheme perhaps - or the just shoot yourself as you have the missed the boat ISA?

:):):)

love it.......Help to Die scheme is obviously next on the agenda

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What of someone who is currently 39? Will they benefit for just one year, or are they on the scheme for life?

I am in that boat, 39 now, 40 this year. I guess I miss out on this. I was wondering if I could transfer the help to buy ISA into it but it seems I will be too old.

Here is a great website with a good explanation of the new LISA.

http://monevator.com/

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Lifetime ISAs will be available from April 2017, so you’ll need to be 40 or younger at that time to open one.

I had another good read about the LISA. 40 or younger, I may just get in! Also seems you can open it with a HTB ISA as well but you can't use both bonuses to buy a house! That's fine HTB will be my house fund and the LISA will be my FIRE fund! Oh, and this is the pretty important.

Most importantly, qualifying investments for a Lifetime ISA will be the same as for a normal ISA.

Cash, shares, bonds, investment trusts, ETFs – it seems all will be fair game in the Lifetime ISA.

So, To my eyes, this seems to be the start of helicopter money. Will these ideas win votes!

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