Tartboy, Please dont think I was "having a go at you" for the decisions you've made as that was not my intention.
Your circumstances are your own.
What I was aiming at was addressing some of the decisions and considerations that one should take before jumping into this as it's not just clear cut "renting is dead money" as some people suggest (beyond the forum).
You've made financial choices with consideration to a level that you are happy with. You've thought about the what if's as you say with a positive attitude. - Fact is you've thought about it as many folks who get in trouble clearly do not.
Personally I look at the what if's with a slightly more negative aspect (risk adverse is a better description) and It's worked up till now
PS: got to reuse the [ quote ] and tail with [/ quote ] within the main quote to nest them. Hit reply to just take a look at the post to see it in action.
You need to look at factors such as average wages verses house prices and so on.
Wages were much lower 25 years ago too so it balances out to some degree.
The wage multiple is still tracking around 3-5 depending on how far you stretch and to what type of property. That's not changed much depending on what part of the country you are in.
Since your pension will be tax free savings and the lump sum also tax free to a certain amount. Thus at least 20% discount on what the remaining debt may be.
Naturally you have to work all of this out and see if it works for your circumstances; it's not financial advice.
Your circumstances are your own.
What I was aiming at was addressing some of the decisions and considerations that one should take before jumping into this as it's not just clear cut "renting is dead money" as some people suggest (beyond the forum).
You've made financial choices with consideration to a level that you are happy with. You've thought about the what if's as you say with a positive attitude. - Fact is you've thought about it as many folks who get in trouble clearly do not.
Personally I look at the what if's with a slightly more negative aspect (risk adverse is a better description) and It's worked up till now
PS: got to reuse the [ quote ] and tail with [/ quote ] within the main quote to nest them. Hit reply to just take a look at the post to see it in action.
(15-01-2015, 11:42 AM)Dum-Dum Wrote: look at what rents were 25 years ago when peoples parents were buying houses, they were probably less than half of what they are now.And house prices 25 years ago were what compared to rent?
You need to look at factors such as average wages verses house prices and so on.
Wages were much lower 25 years ago too so it balances out to some degree.
The wage multiple is still tracking around 3-5 depending on how far you stretch and to what type of property. That's not changed much depending on what part of the country you are in.
Quote:The other thing is you will be renting for the rest of your life having to pay for rent out of your pension payments. In 23 years time (12 years before the current state pension age) I will have no more mortgage to pay making me £650 a month better off. That's a nice holiday every month or some serious savings for my eventual retirement.One thing to do is to time things such that you take a lump sum from your pension to pay off the outstanding debt on your mortgage.
Since your pension will be tax free savings and the lump sum also tax free to a certain amount. Thus at least 20% discount on what the remaining debt may be.
Naturally you have to work all of this out and see if it works for your circumstances; it's not financial advice.