In the long run, could home ownership = renting?

[Jeff Maginty]

..

[eek]

Does this highlight the folly of "My property is my pension"?

My home is not my pension. The three buy to let houses however are.

[MarillionFan]

How 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 The Fook Are You Talking About Willis?

[russell]

How 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.

[minsky1]

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.

[Bunk]

a large (or even majority) steak

Mmmmm, large steak