Pensions

[Cyberman]

Property appreciates at 2% a year over 40 years, but you've got a point about actually having something for your money. If you're happy with that, go for it.

I'm planning on using my ISA allowance for the next 30 years to provide my pension.

At least you can live in it, but you cannot live in share certificates. Don't forget also, that on top of capital appreciation you can have a very nice income through rents, and rents do appreciate with inflation.

Your 2% annual growth seems a bit low to me. I bought at 97,500 pounds in 1997 and now my property is worth nearly 4 times that. Some of that may be due to the fact that we have a much higher population than 40 years ago and more single owners due to greater independence, fewer marriages, more immigration and thus far greater demand for property.

[Moscow Mule]

Your 2% annual growth seems a bit low to me.

It's based on the Nationwide Building Society statistics. We've had "above average" house price growth in the last 15 years or so.

[Cyberman]

At least you can live in it, but you cannot live in share certificates. Don't forget also, that on top of capital appreciation you can have a very nice income through rents, and rents do appreciate with inflation.

Your 2% annual growth seems a bit low to me. I bought at 97,500 pounds in 1997 and now my property is worth nearly 4 times that. Some of that may be due to the fact that we have a much higher population than 40 years ago and more single owners due to greater independence, fewer marriages, more immigration and thus far greater demand for property.

OOOPS...... 1987 !!!

[DimPrawn]

Property may fall in the short or medium term (from a historical peak), but it doesn't go to zero, like shares and pension funds.

I can't see houses being priced at £0.00 can you?

[TheBigYinJames]

I can't see houses being priced at £0.00 can you?

What's the difference between a house priced at £0.00 and one which won't sell, ever? If you want to see houses which are effectively worth nothing, then there are plenty around.

[Dearnla]

Savings

But actually, the sensible answer is don't put all your eggs in one basket aka have a balanced portfolio.
Ergo, put some into a pension - yes it's locked away but that means you can't spend it on expensive toys (drat!). And it gets money out of your business account so that it doesn't go on tax.

Put some in savings and use your ISA allowance. Put some into property - you DO need somewhere to live, don't you?

Sadly, I am facing the fact that all the money I put away as a youngster isn't actually going to buy me much of a pension when I retire so I am facing the prospect of selling the house in 20 year's time and downsizing. Which should give me a sizable lump sum to buy that Ferrari...

Oh, and I'M SPARTACUS....

[Spartacus]

Take off inflation and that equates to about £100K.

So saving money and paying tax on the interest is actually a good way of losing money.

Instead spend £1000/month on subsidising a BTL, and in 24 years it will be worth squillions. YOU CAN'T LOSE!

That may be so but you always need a baseline to measure other schemes against. If it can't do better than turn that amount into £500k in today's money then look elsewhere.

I likes to be thorough. Personally I have a mixture of cash on deposit, ISAs and a pension. Plus some bonds, an endowment (don't laugh), life assurance policy, friendly society account and a house!

[DimPrawn]

That may be so but you always need a baseline to measure other schemes against. If it can't do better than turn that amount into £500k in today's money then look elsewhere.

I likes to be thorough. Personally I have a mixture of cash on deposit, ISAs and a pension. Plus some bonds, an endowment (don't laugh), life assurance policy, friendly society account and a house!

Gosh, you sound almost exactly the same as sasguru there!

[Spartacus]

Gosh, you sound almost exactly the same as sasguru there!

Funny that.

[Spartacus]

Are you sure you're not Dwayne Dibbley?

No, I'm sure I am.