Buy or live mortgage free?

[The Lone Gunman]

Thanks all for your answers...

Gran has a good stream of dividends coming in so I don't expect she'll need to sell the flat anytime soon. I currently save about 60% of my after tax income, should be able to get this up to about 75% more when I take rent out of the equation.

You may want to look at ways of keeping the inheritance tax down too.

[expat]

Buy, because one day you will live rent and mortgage free. Who wants to be paying rent for ever out of their pension ?

Possibly somebody who has invested the money he might have spent on buying a house, and receives more than enough return on it to pay the rent.

[London75]

Definitely save while living rent free and take the time to find a nice plot of land, building costs never rise anywhere near as fast as house prices so a beautiful house can still be built for a fraction the cost of an existing home.

[BrilloPad]

I suspect there will be bargains to be had when the market bottoms out, with lots of choice and room for negotiation. When that time will come I have no idea, but the experts on here will know for sure

Who can you mean?

[NetwkSupport]

Originally Posted by Cyberman
Buy, because one day you will live rent and mortgage free. Who wants to be paying rent for ever out of their pension ?

Possibly somebody who has invested the money he might have spent on buying a house, and receives more than enough return on it to pay the rent

£500k in a savings account at just 7% (you could diversify and get better) would give you £2.5k interest a month.....or more.......for ever.......

[TimberWolf]

Who can you mean?

Anyone here, 6 months after the event

[Likely]

£500k in a savings account at just 7% (you could diversify and get better) would give you £2.5k interest a month.....or more.......for ever.......

yeh but if you have 500k in the bank you can't live on 2.5 a month..

[DimPrawn]

£500k in a savings account at just 7% (you could diversify and get better) would give you £2.5k interest a month.....or more.......for ever.......

It's a shame that inflation would erode your lump sum and income and within a few years, £2.5K won't even cover your gas bill.

[BlasterBates]

The market will be bottoming out in 2010 having dropped between 30% and 40% , and will then remain flat for 3 years.

HTH

[DimPrawn]

The market will be bottoming out in 2010 having dropped between 30% and 40% , and will then remain flat for 3 years.

HTH

Perfect timing for me.