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SCUMBAG

Homeowners Warned Against Buying A House Instead Of A Pension

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Just started.

I think you have misunderstood what this article is about. It does not mean the crash is about to happen, it simply means that by downsizing as a pensioner any monies you hold in savings as a result of the sale will be means tested so that any pensioner benefits that you would receive if you had no savings would not be available to you. It is therefore more cost effective in some cases not to sell and let the government support you.

silly billy...

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I think you have misunderstood what this article is about. It does not mean the crash is about to happen, it simply means that by downsizing as a pensioner any monies you hold in savings as a result of the sale will be means tested so that any pensioner benefits that you would receive if you had no savings would not be available to you. It is therefore more cost effective in some cases not to sell and let the government support you.

silly billy...

Why doesn't the government take into account the assets as well as income and then have some sort of MEWing system to get the asset wealthy to pay for their own retirement?

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I think you have misunderstood what this article is about. It does not mean the crash is about to happen, it simply means that by downsizing as a pensioner any monies you hold in savings as a result of the sale will be means tested so that any pensioner benefits that you would receive if you had no savings would not be available to you. It is therefore more cost effective in some cases not to sell and let the government support you.

silly billy...

No I understand what it is about. I quoted verbatim the headline at the top of the program before the article aired. I didn't imply that it was about to crash as a result of this. I heard an article relevant to housing on Radio 4 and posted it on a housing discussion forum as I thought it might be of interest to its users. Their headline was misleading. The slant Radio 4 took on it was that saving for retirement was important as you could not count on downsizing as a viable option of funding retirement.

Bristol University published a report several years ago about how home ownership could not be guaranteed as a retirement income so this is hardly new news. Bristol university implied that the dynamics of the country would be much different in 30 years time.

IMO I can't see how someone of my age will move up the ladder if economics conditions stay the same. I can't even get on it. Low wage inflation will certainly ensure that I can't move up even if I do manage to struggle on it. Even the couples who buy now and require two mortages to sustain their payments won't have the wage inflation to be able to move up (as is happening with all of my friends who bought 5 years ago). They can't count on capital appreciation to help them move up as the next house up the ladder will have gone up too. Add to that the complication that the price they are asking so that they can afford the next house up the ladder is too high for the FTBs in the area. So if this situation continues, as so many bulls seem to think it is, who is going to be around in 30 years time to buy all these houses for £500k+ so thay the BTLs can enjoy the fruits of their 'labour'?

In 2003 the Nationwide published a report that said that there was nothing in the short term that posed an immediate threat to the housing market. They were correct. They said that in the medium term, low inflation posed the most significant threat. Mervyn King echoed these comments at the time. This is how things are starting to pan out now it would seem. The market has reached a stage of saturation.

High house prices give the short term illusion of wealth but hurt everybody in the long term, young and old. I know this is not what the article is about, but it seems like a good time to raise the issues of using a home as a pension as I have heard this mentioned so many times. The flat I rent now is apparently my landlord's 'pension'.

Edited by SCUMBAG

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Why doesn't the government take into account the assets as well as income and then have some sort of MEWing system to get the asset wealthy to pay for their own retirement?

Now thats an idea........ :ph34r:

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"This is BBC Radio 4, all property is theft, the benevolent state will look after you" ;)

is the unsurprising message from the BBC. And they know loads about that

The government supports the BBC and their pensions to the tune of £4 billion each year, in the little world of the BBC why can't the state support everybody? You don't mean people actually have to pay for this largess?

Edited by BuyingBear

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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