Crazyface
Tour Winner
OW MUCH !!!? In a decent area, with a supermarket near by? Pic's please LOL
Inflation - the Elephant in the Room
- Thread starter PNWokingham
- Start date
OW MUCH !!!? In a decent area, with a supermarket near by? Pic's please LOL
The options are buy, rent to buy or rent. Yes there’s a couple of supermarkets, though not huge. Plenty of shops, bars and restaurants and 10 mins from Mojacar, which is also very nice but a lot more expensive. 40mins from Almeria airport, 1 hour from Corvera airport and 2 hours from Alicante and Granada airports.
https://www.rightmove.co.uk/propert...a?channel=OVERSEAS&id=video0&ref=photoCollage
Piece
Tour Winner
I've done exactly this just now. Sorted via my mortgage IFA.
BubbaP
Occasional Player of Golf
I think you may have misunderstood.
The post being replied to was:
what happens when those companies insist on greater time in the office and the longer commute grinds them down....?
So I read the reply as "decent people from that bunch of former office workers".
Just my thoughts.
clubchamp98
Journeyman Pro
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Deleted member 29109
Guest
It was all cleared up earlier. Just a misunderstanding of what I meant by decent people.
Ross61
Challenge Tour Pro
I was brought up with the idea that buying was best for investment and flexibility in moving to where I wanted to live and in the house I wanted to live in. This idea was brutally tested when having a young family and a mortgage during the late 80’s and early 90’s when interest rates were increased at the drop of a hat. I survived and then fortunately arranged a life term tracker of 0.4% above base Shortly before 2008 credit crunch. I have now retired early and paid off my mortgage and now realised that the extra plus of buying is I do not need to pay neither mortgage nor rent until I pop my clogs.
The only downer since retiring is the other side of the coin with currently interest rates are so low the interest gain on my lump sum received from my pension is barely worth speaking of.
If interest hikes are on the horizon then that is great for me, but I really worry about the young people, including my children, with mortgages now as this could be really a harsh reality that this could be worse than what I struggled through 30 years ago.
The only downer since retiring is the other side of the coin with currently interest rates are so low the interest gain on my lump sum received from my pension is barely worth speaking of.
If interest hikes are on the horizon then that is great for me, but I really worry about the young people, including my children, with mortgages now as this could be really a harsh reality that this could be worse than what I struggled through 30 years ago.
SwingsitlikeHogan
Major Champion
This is the massive elephant in the room…the millions renting but with minimal savings (if any) and pension - probably just state. And once they retire they will not be able to afford the rent on where they live. What happens? The rental market collapses? Rental home owners default on their mortgages? Hundreds of thousands more homeless? Massive government intervention to pay the rents? And we think social care is going to be difficult to sort out…this rental issue is going to hit very very soon.
Mudball
Assistant Pro
Agree with the scenarios. however it assumes that pensioners are the only people in the property market. Young and affluent families will displace the pensioners (read will drive the pensioners away from the area).
In my corner of the world, almost every house was bought in the 70-80s. Large and upper middle class suburbia. Now the next gen has come back to the nest. None of the next gen is able to afford it. Families are sitting on a golden asset but have very little cash.
Has house price gone down? Not a chance. Now we are seeing Londoners making their way here. Next gen is cashing out and putting a deposit for much smaller house/renting somewhere.
harpo_72
Journeyman Pro
I think the issue with renting in the U.K. is that most of that property has a mortgage on it, meaning it has interest and bank costs on it. If you look abroad is it the same situation?
I think you need to make your own provisions, and that can be whatever means possible. But private pensions are a disaster for the self employed, IR35 stops stashing to get to a comfortable cushion, letting property is geared towards the renter with agents being useless parasites… and parents living longer than their own and blowing assets they inherited on poor investments or trinkets… take all those into consideration and question every cost and refuse to pay more than the going rate, drop the unnecessary services and forget getting new cars .. working from home is the only acceptable option for those that can, as child care can be managed, time wasted travelling is removed as is the cost .
I think you need to make your own provisions, and that can be whatever means possible. But private pensions are a disaster for the self employed, IR35 stops stashing to get to a comfortable cushion, letting property is geared towards the renter with agents being useless parasites… and parents living longer than their own and blowing assets they inherited on poor investments or trinkets… take all those into consideration and question every cost and refuse to pay more than the going rate, drop the unnecessary services and forget getting new cars .. working from home is the only acceptable option for those that can, as child care can be managed, time wasted travelling is removed as is the cost .
SwingsitlikeHogan
Major Champion
…plus the majority in the country don’t have much, or indeed anything, in the way of savings…and when for many their private pension pot is about £30k…which sounds like a lot but in pension terms is dilly-squat.
harpo_72
Journeyman Pro
That’s because the system is a tax scam. In that you get tax relief, which is good, but management fees and poor management actually reduce the pot and they take the tax benefit.
The performance metrics on pension pots need to be set. So for example 5% growth yields a management fee of 0.005% no growth no pay irrespective of market conditions. Currently the market is manipulated by a select few with their strategy of sell points and buy points that cause the market to fluctuate.. put stringent anti dumping rules in and we won’t see a mass exodus on certain shares and will force stability.. it means less millionaires and more market stability but that’s a small price to pay.
Mudball
Assistant Pro
agree with most of it, but change is underway. The bigger challenge is financial literacy. Most people dont understand the markets and the psychology of money. They think others are the experts and will have their good in their minds when making investment choices. nothing is far from the truth. We need financial literarcy as part of our schooling system.
The regularators are doing ok, but can do more. Make it simpler. Make companies more transparent & simpler.
What is however changing is the market dynamics. Players like Robinhood, nutmeg etc driving fractional ownership of shares is getting increasingly popular. They will drive down costs for the 20% who take them up. I use Hargreaves for company pensions, the charges are extortionate. So i pulled my ISA out and put it into IG.com. I control it. Ofcourse, i will end up losing it. But so did Hargreaves when it sold me Niel Woodford's fund as gold.
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Deleted member 25172
Guest
Threads like this is keeping me sleepless at night, having just secured a mortgage for our first house, also knowing that pulling out of the buy will no doubt put an end to me and my missus relationship as there is no way she will accept to step back now.
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Deleted member 29109
Guest
Sounds like a golden ticket to freedom ?
Why would you pull out of the purchase? There is never a right time to buy your first house, or have your first child.
Jimaroid
Journeyman Pro
It's a stressful time but ultimately worth it in the UK. Despite the gloom and doom, there aren't many (any?) safer financial bets available provided you're operating within your means. If you look at it purely in terms of rent money being a 100% loss - money you'll never see again - versus a mortgage being reasonably safe way of seeing that money again in the future the stress is much less.
I was terrified of mortgages when I was younger, I think the points about financial literacy at school are very appropriate as it's not taught and that's a huge omission in today's society. I have a philosophical distaste of debt and am horrified by the way many other people consider it a near infinite resource, but ultimately in the UK you're either paying off your own mortgage or you're paying off someone else's. It's that simple and given the conundrum I'd rather not be paying off someone else's mortgage for them.
Of course it's easy to say that having only gone through a period of low interest rates for so long but that's also been an advantage in that the money invested in property has been a better return than savings would have had.
I'm not a financial advisor but I just looked at each option as a gamble and the property was best chance of return. Ultimately all money in property can be lost, you just try to look at it as a way to achieve some returns compared to riskier options and it starts to create a little less stress.
Mudball
Assistant Pro
A friend once told that pulling out can help avoid the first child. ... (dogh)
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Deleted member 25172
Guest
I've always been reasonably cautious with money, with the attitude of "if I cannot afford to pay it straight up, then I probably shouldn't have it". Obviously, this isn't applicable for a house or a car buy. My gf on the other hand is the complete opposite. 2 weeks in Mexico? That's what a credit card is for!
I understand it on a rational level that renting is as you say me paying off someone else's debt, and filling their pockets at the same time, but what's frightening me mad is the difference of stress that you'd come under if poop hits the fan properly.
Just looked at it and at least our mortgage rate is fixed for 5 years, so if things go wrong, hopefully it'll ride out somewhat by the end of it.
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Deleted member 21258
Guest
How true is that, we bought as people around us were losing their houses and jobs.
Sometimes, you just have to roll the dice
We are in the closing straight for our mortgage but we always fixed whenever we could. That way we knew exactly what we would be paying for the next 5-10yrs. Every so often it might have meant we were paying slightly more but that did not bother me. I had the comfort of knowing the amount to pay each month, knowing we could pay that amount. Peace of mind was worth that little extra (if it was a little extra)
