Reply to: Buy or live mortgage free?

[DimPrawn]

there is that little thing called tax that you seem to ignore

Not a problem if you are a Non Dom and you put the money in an offshore account.

[oracleslave]

Do they always give you syphilis when they lock you up for tax evasion?

I can't remember, it must have gone to my brain.

[Platypus]

The obvious answer is to live rent free for as long as possible, and save save save. The housing market is yet to bottom out, that's going to happen over the next couple of years, by then you'll have a sizable deposit to put on a cheaper house.

WHS

[oracleslave]

tax is for lesser mortals

That's what Al Capone thought.

[NetwkSupport]

there is that little thing called tax that you seem to ignore

tax is for lesser mortals

[tim123]

is that what happened in the last housing crash?

No, it's a bigger drop than last time

HTH

tim

[Cyberman]

£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.......

there is that little thing called tax that you seem to ignore

[Sysman]

£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.......

Alternatively you could use the dosh to buy an existing business which would provide an income stream.

The tricky bit is finding the right business to buy.

[OwlHoot]

.. As others have said, now is not a good time to buy. Live cost free at grans place and save like mad.

If your granny has a different name to you, e.g. mother's maiden name, you could get a rent book and with her approval pretend to be renting. That way you'll be able to use her as a reference when you apply for a mortgage.

[BrilloPad]

is that what happened in the last housing crash?

What about enourmous never before seen consumer debt and the rising economies of china and india - wont that have a longer term effect on the uk economy and therefore the housing market that we havent seen or taken into account before?

It is quite close to what happened. Prices were static while the overhang of repossed houses was sold off.

People now expect house price volatility - alot of people are waiting for buying opportunities. Few put money into equities or such investments anymore.

[Cyberman]

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.

Possibly, but very unlikely to be a good idea because you will not have any idea what the rents will be in 20 years time. Far better to know that you will be paying nothing. Also, houses, despite current woes, are proven to be a far better investment than most other options in the long-run.

[beaker]

LHC is switched on. Many strange things will happen.

[expat]

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.

Whereas house prices never go down. Ah, now I see.....

[wantacontract]

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.

dude, you save a good %.

I would live rent free for the next 1.5 to 2 years and then swoop in then. I just got married, and we are still living separately. She is only 5 mins down the road. I live in mom and dads, (they don't live here) she lives with her mom and dad.

We are saving, and hope to buy in latter end of 2009. I would like to wait until 2010, but I can't make the poor girl wait until then.

[ThomasSoerensen]

Huh?? Beaker is asking a question here??? has the world gone upside down?? You are supposed to be the ultimate question answerer on the board !!

LHC is switched on. Many strange things will happen.