Housing Market

[Lord Tyrion]

Depends on the time scale I believe.
I think there is a 7 year 'gift' rule in Scotland,.
Not 100% sure how CGT works in that scenario.

The 7 year rule applies in England as well. Be prepared is the answer, plan things in advance, not when the moment arrives.

 

[PJ87]

The 7 year rule applies in England as well. Be prepared is the answer, plan things in advance, not when the moment arrives.

Not to worry too much tbh , if it's your house your passing on to your children you get half a million tax free , and that's per person so between parents to kids it's 1 million before tax comes into it

 

[Lord Tyrion]

Not to worry too much tbh , if it's your house your passing on to your children you get half a million tax free , and that's per person so between parents to kids it's 1 million before tax comes into it

True, to an extent, but the way some areas increase in value that number can creep up. In terms of what can be charged against care home fees, it is not 7 years, but if it looks like you are moving money just as someone is about to be put in a home then they will come for you. The local authority look back around 12 months I believe and if any assets have been moved they can include them in the calculation still.

Be prepared.......

 

[PJ87]

True, to an extent, but the way some areas increase in value that number can creep up. In terms of what can be charged against care home fees, it is not 7 years, but if it looks like you are moving money just as someone is about to be put in a home then they will come for you. The local authority look back around 12 months I believe and if any assets have been moved they can include them in the calculation still.

Be prepared.......

My parents were worrying about it I just told them we aren't worried about how much money we get when you pass we want you around. Spend as much now enjoying it and if we have to pay tax on the house so what. It's not like I've earned that house. My sister and I will split it. My share will go to my kids but nothing will replace the grandparents they wouldn't have anymore.

 

[chrisd]

I understand why so many people want to live down south near London because that's where the higher wages are, but why stay there when they retire?

Because it's where we live Bob. Our friends and family are here. Fast train to London 40 minutes, Channel tunnel 5 minutes. Loads to see and do. Most retired own their houses, and yes, we could sell and enjoy the profit by moving but the cost of living down here, if your retired, isn't much different than anywhere else.

 

[Deleted member 29109]

What £500,00 can buy you in sw Scotland.

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That’s lovely, but it’s the arse end of nowhere.

 

[PJ87]

And wall to wall floors.



Heres an interesting comparison....
5 bed detached in Lincolnshire...

View attachment 49470

5 bed detached in Hornchurch....

View attachment 49471

Both lovely houses ofc course. Think I know where that bottom one is aha

What is being overlooked is the personal impact for people

If you live somewhere for 40 years, you might not want to move and start again at retirement.

All that you know. Friends, family nearby

I do remember as a kid my parents did talk about retiring to the isle of wight but then dad had heart issues and anything there would then be air ambulance to the mainland .

 

[PJ87]

Because it's where we live Bob. Our friends and family are here. Fast train to London 40 minutes, Channel tunnel 5 minutes. Loads to see and do. Most retired own their houses, and yes, we could sell and enjoy the profit by moving but the cost of living down here, if your retired, isn't much different than anywhere else.

It's what I'm working towards, my pension is lower than my wages and the difference would be the mortgage payment. So once the mortgage is paid off in theory should be able to continue the life I have now just with a paid for house..

 

[Lord Tyrion]

My parents were worrying about it I just told them we aren't worried about how much money we get when you pass we want you around. Spend as much now enjoying it and if we have to pay tax on the house so what. It's not like I've earned that house. My sister and I will split it. My share will go to my kids but nothing will replace the grandparents they wouldn't have anymore.

My FiL has gone into bunker mode, full Smaug . We keep trying to get him to spend some money, he is 86, very comfortable financially, but as tight as anything. He will buy things that are cheap and nasty, complain that they are cheap and nasty but wont listen when we try to get him to spend more and be comfortable. His 3 kids try to tell him to enjoy his money but he wont change . Richest man in the graveyard, it's a rubbish accolade.

 

[chico]

And wall to wall floors.



Heres an interesting comparison....
5 bed detached in Lincolnshire...

View attachment 49470

5 bed detached in Hornchurch....

View attachment 49471

That is eye watering. I genuinely think at some point there has to be a reset. How can ordinary people in the SE afford a reasonable house?

 

[paddyjk]

My FiL has gone into bunker mode, full Smaug . We keep trying to get him to spend some money, he is 86, very comfortable financially, but as tight as anything. He will buy things that are cheap and nasty, complain that they are cheap and nasty but wont listen when we try to get him to spend more and be comfortable. His 3 kids try to tell him to enjoy his money but he wont change . Richest man in the graveyard, it's a rubbish accolade.

Ha I like that , I'm always telling my wife I'm going to put something alongs those lines on her gravestone.
Although I also point out she'll probs outlive me by 30 years

 

[Deleted member 29109]

That is eye watering. I genuinely think at some point there has to be a reset. How can ordinary people in the SE afford a reasonable house?

Is a 5 bedroom detached house with a double garage a ‘reasonable’ house? For most ordinary (whatever that actually means) people it’s probably not, aspirational or desirable maybe!

Like almost everything in life we have choices. If someone wants a £1.5 million house in the SE there ways and means of earning enough money to do so.

However, for many reasons the majority of people don’t want do do what it takes to go out and earn that sort of money. So there are cheaper options.

There are a couple of very nice properties for sale near me that we’ve looked at. But it would mean more than double our mortgage, nearly triple in fact and I can’t afford that.

I could find another job that pays more, the wife could go back to work, I could set up another business or do all sorts of things to earn extra money. But to be honest I can’t be bothered. I have a relatively comfortable existence now, working to buy a larger more expensive property would entail a lot of extra effort and stress.

 

[PJ87]

Is a 5 bedroom detached house with a double garage a ‘reasonable’ house? For most ordinary (whatever that actually means) people it’s probably not, aspirational or desirable maybe!

Like almost everything in life we have choices. If someone wants a £1.5 million house in the SE there ways and means of earning enough money to do so.

However, for many reasons the majority of people don’t want do do what it takes to go out and earn that sort of money. So there are cheaper options.

There are a couple of very nice properties for sale near me that we’ve looked at. But it would mean more than double our mortgage, nearly triple in fact and I can’t afford that.

I could find another job that pays more, the wife could go back to work, I could set up another business or do all sorts of things to earn extra money. But to be honest I can’t be bothered. I have a relatively comfortable existence now, working to buy a larger more expensive property would entail a lot of extra effort and stress.

That house example is a bit extreme tbh, just more space available up north for less money

That house for example is a very good size, my parents house is a 5 bed semi . It's worth about 800k I believe .. got a fair bit of land (massive garden)

That's a more realistic house for those who want 5 beds

That is in footballers row by the looks of it

 

[SwingsitlikeHogan]

My FiL has gone into bunker mode, full Smaug . We keep trying to get him to spend some money, he is 86, very comfortable financially, but as tight as anything. He will buy things that are cheap and nasty, complain that they are cheap and nasty but wont listen when we try to get him to spend more and be comfortable. His 3 kids try to tell him to enjoy his money but he wont change . Richest man in the graveyard, it's a rubbish accolade.

MiL has been in that bunker for decades…largely we believe because she didn’t actually know the totality of how much she had saved and invested. As she is now 93 and looking at self-funded care, we’ve added it all up and she is now much more relaxed and generous.

Her house is protected from any assessment that social services might do in the future if she runs out of funding as my BiL (66) lives in her home and has done for some years. However, I am not sure if the house remains an asset (to be sold) if in years to come social services pick up the cost of MiLs care.

If my BiL moves from living in the house some years after any social services funding assessment is made, do social services have a call on funds that would result from the sale of her house - even though it was not included in a funding assessment when it was made. Yet to understand that.

 

[road2ruin]

Sometimes it is just not that simple.
So far it has cost our family nearly £400.000 to keep my MIL in a care home.
The sale value of her house has now virtually been swallowed up

Yep, my dad's parents had a mortgage free house worth around £750,000. Both ended up in care and by the time they passed there was barely anything left from either their savings pot or the proceeds of the house sale.

 

[larmen]

True, to an extent, but the way some areas increase in value that number can creep up. In terms of what can be charged against care home fees, it is not 7 years, but if it looks like you are moving money just as someone is about to be put in a home then they will come for you. The local authority look back around 12 months I believe and if any assets have been moved they can include them in the calculation still.

Be prepared.......

There was some weird case in an online newspaper where because mum had a right to live or something similar the 7 years didn’t count. Not entirely sure, but because of current allowance and value we don’t need to look into tax reduction/avoidance/evasion (?) for our 3 bed semi just yet.

 

[chico]

Is a 5 bedroom detached house with a double garage a ‘reasonable’ house? For most ordinary (whatever that actually means) people it’s probably not, aspirational or desirable maybe!

Like almost everything in life we have choices. If someone wants a £1.5 million house in the SE there ways and means of earning enough money to do so.

However, for many reasons the majority of people don’t want do do what it takes to go out and earn that sort of money. So there are cheaper options.

There are a couple of very nice properties for sale near me that we’ve looked at. But it would mean more than double our mortgage, nearly triple in fact and I can’t afford that.

I could find another job that pays more, the wife could go back to work, I could set up another business or do all sorts of things to earn extra money. But to be honest I can’t be bothered. I have a relatively comfortable existence now, working to buy a larger more expensive property would entail a lot of extra effort and stress.

I was thinking more of the property market as a whole. If that house costs that, what does a three bed mid terrace cost. Not cheap I'll bet. What could a couple on average earnings afford? There's a ceiling to what most people can earn but everyone needs somewhere to live.

 

[PJ87]

I was thinking more of the property market as a whole. If that house costs that, what does a three bed mid terrace cost. Not cheap I'll bet. What could a couple on average earnings afford? There's a ceiling to what most people can earn but everyone needs somewhere to live.

It's true the housing market needs a massive reset . Problem is our entire economy is built on the bubble and the real losers will be normal folk

 

[Deleted member 29109]

It's true the housing market needs a massive reset . Problem is our entire economy is built on the bubble and the real losers will be normal folk

How do you reset when so many people are banking on equity funding retirement and old age care (probably a discussion that won’t end well here)?

And what/when do we reset to? Or stop people with lots of money buying up cheaper houses.

You can already see people worrying that they won’t get their inheritance because it’s (rightly so in my opinion) funding their parents care home costs.

 

[Bunkermagnet]

I understand why so many people want to live down south near London because that's where the higher wages are, but why stay there when they retire?

There’s more to the South/South East than London.
We have lots of green spaces, quiet villages, historical places, a coastline, beaches, public transport some golf courses and the most motorway miles in the country here in Kent.
You might even find the odd charger for your ev.