Reply to: Fat Pension Vs Paying off mortgage early

[EternalOptimist]

lol
1083 years since you ask

[GreenerGrass]

if house prices are going up faster than you can save then not only are you in deep sh!t my friend, but you always will be.
are you sure you are a contractor ?

You obviously didn't live in the south east in the years I mentioned (as a permie during much of it). The balance has tipped the other way now thank God.

[bogeyman]

let me know when he looks as old as you do, I'll send the poor fellow a bunch of flowers

Well you're no spring chicken!

[EternalOptimist]

He then insists on writing me reports on what I should be doing, which I bin. He seems to age markedly at every visit. Poor sod.

let me know when he looks as old as you do, I'll send the poor fellow a bunch of flowers

[bogeyman]

I have an Idependant Financial Advisor who comes sniffing around every 6 months or so.

Don't know why the poor man bothers, as I've never bought any serious financial products off him in 15 years. We have a cup of coffee and a nice chat and he leaves empty handed.

He then insists on writing me reports on what I should be doing, which I bin. He seems to age markedly at every visit. Poor sod.

[EternalOptimist]

Admirable if you can manage it but surely mortgages aren't for mugs when houses are going up by more than you can save.
I could see the logic if you were living somewhere rubbish but had a couple of BTLs on the side, otherwise you might as well use the leverage of a mortgage on your main residence.

Granted we're not in a 1996-2004 growth spurt anymore.
I remember saving for my first deposit when I would have been better off getting a 100% mortgage and then remortgaging after 2 or 3 years.

if house prices are going up faster than you can save then not only are you in deep sh!t my friend, but you always will be.

are you sure you are a contractor ?

[GreenerGrass]

Agree EO - and pensions are for mugs too.

Admirable if you can manage it but surely mortgages aren't for mugs when houses are going up by more than you can save.
I could see the logic if you were living somewhere rubbish but had a couple of BTLs on the side, otherwise you might as well use the leverage of a mortgage on your main residence.

Granted we're not in a 1996-2004 growth spurt anymore.
I remember saving for my first deposit when I would have been better off getting a 100% mortgage and then remortgaging after 2 or 3 years.

[bogeyman]

Mortgages are for mugs(imo)

Agree EO - and pensions are for mugs too.

[EternalOptimist]

I choose the third way.

Live in a sh!thole, contract, save like mad.
buy house(40k), contract, save like mad.
buy final house(200k),contract,save like mad.
Use interest on savings to live on in semi retirement (target saves 300k)
Use savings when end is in sight for whatever

I am half way to my 300k and its taken 11 years so far. Mortgages are for mugs(imo)

[DimPrawn]

Yes, trade down to a smaller house. Or even better a same size house outside the south east.
I've never understood people who live in an absolute tuliphole and spend loads on holidays. Why not just live somewhere nicer in the first place.
Often these are the same people who have a brand new, but rubbish, car every other year on finance.

IMO, if Labour try to introduce CGT on main residences, they will be voted out at the next election and banished for decades. I don't doubt the b*stards are thinking about it though.

They can do it easily by stealth like they always do in the name of "fairness".

"We believe it is wrong for the rich to sell their large expensive houses without paying CGT"

"Therefore we will introduce CGT on wealthy individuals where their house are sold for over £1M pounds".

The stupid thick ***** known as the electorate will lap it up.

"Yeah rich scum, take that"

..before they realise that in a few more years even a modest house in the south will exceed the £1m mark.

tw@ts.

[sasguru]

Yes, trade down to a smaller house. Or even better a same size house outside the south east.
I've never understood people who live in an absolute tuliphole and spend loads on holidays. Why not just live somewhere nicer in the first place.
Often these are the same people who have a brand new, but rubbish, car every other year on finance.

It's only fair. Everyone has a new car, innit?

[GreenerGrass]

Yes, trade down to a smaller house. Or even better a same size house outside the south east.
I've never understood people who live in an absolute tuliphole and spend loads on holidays. Why not just live somewhere nicer in the first place.
Often these are the same people who have a brand new, but rubbish, car every other year on finance.

IMO, if Labour try to introduce CGT on main residences, they will be voted out at the next election and banished for decades. I don't doubt the b*stards are thinking about it though.
That would be treble taxation, on income needed to buy, stamp duty and then when you sell.

[DimPrawn]

As Churchil would say

"Oh Yes".

[sasguru]

As Tony Bliar would say

"look, it's like this. Everyone has a finite income. You can put money into a pension or you can max out your borrowing, buy the biggest house you can afford and concentrate on paying it off early."

"One one hand, you (may) have a pension and live in a crappy little house all your life and risk my mate Gordon swiping the pot in the name of 'fairness' or you enjoy a large spacious home with a big garden and then trade down the property ladder (or even better leave the UK) with a big wad of cash in your pocket (tax free)."

HTH

Only a matter of time before they introduce CGT on your main (sole) property.

[DimPrawn]

As Tony Bliar would say

"look, it's like this. Everyone has a finite income. You can put money into a pension or you can max out your borrowing, buy the biggest house you can afford and concentrate on paying it off early."

"One one hand, you (may) have a pension and live in a crappy little house all your life and risk my mate Gordon swiping the pot in the name of 'fairness' or you enjoy a large spacious home with a big garden and then trade down the property ladder (or even better leave the UK) with a big wad of cash in your pocket (tax free)."

HTH