[tghe-retford]

Some of the low paid, long term single people and those with bad credit ratings have no choice but to rent. Certainly true on all three counts with me, someone who can't even get beyond a basic cash bank account or a VISA Electron.

[Andrue]

Originally Posted by YoungAtHeart

Yes, this is quite rightly means tested.

If someone is sitting with a lot of cash in the bank then why should tax payers be supporting them?

Because we supported the country back when we were earning? During my working lifetime I will pay a lot more tax than most people. Last year I probably paid three or four times as much income tax as most people. And yet I would get almost no support if I needed it.

Now to be honest I'm quite proud of my achievements. Debts paid off, I can probably support myself for a couple of years and have skills that likely mean I will never have to subject myself to JSA and all the crap that goes with it.

But still - I give all that money to the government but they won't do much to help me if I need it. Meh. Anyway that's a discussion for a different thread

[Moony]

Originally Posted by YoungAtHeart

However, no one needs to worry about being homeless in old age - that's the important point.

I wasn't talking about being worried about being homeless. The point I was making is that my quality of life will be much better (i.e. i'll have more disposable income) if I don't have to pay rent out of my pension.

[YoungAtHeart]

Originally Posted by Moony

I wasn't talking about being worried about being homeless. The point I was making is that my quality of life will be much better (i.e. i'll have more disposable income) if I don't have to pay rent out of my pension.

Having never been through the pension process myself, I don't know too much about how the pension is calculated.

But I had always assumed that housing benefit is a separate benefit from your pension and therefore, they are not calculated together?

[Moony]

Originally Posted by YoungAtHeart

Having never been through the pension process myself, I don't know too much about how the pension is calculated.

But I had always assumed that housing benefit is a separate benefit from your pension and therefore, they are not calculated together?

This talk of housing benefit is confusing the matter - assume i'm not eligible as I have a decent pension.

If I have £X pension a month (private + state) and I have to pay £Y rent out of it because I don't own a mortgage free house - my disposable income will be £X-Y. If I do own a mortgage free house - my disposable income will be £X........which is more.

[YoungAtHeart]

Originally Posted by Moony

This talk of housing benefit is confusing the matter - assume i'm not eligible as I have a decent pension.

If I have £X pension a month (private + state) and I have to pay £Y rent out of it because I don't own a mortgage free house - my disposable income will be £X-Y. If I do own a mortgage free house - my disposable income will be £X........which is more.

I do know someone who has no private pension so relies entirely on the state. She lives in a pleasant flat and seems to do ok.

She also works a few hours in her local supermarket but she said to me that she does this mainly for human company rather than for financial gain.

I know someone once said to me that upon retirement, you are better off either having a lot or having nothing. Maybe the situation of having nothing is true for this particular pensioner.

Edit: I have just looked at the dwp website and you do get pension + housing benefit

http://www.dwp.gov.uk/docs/pg1.pdf

[molyesha]

Originally Posted by irishguy

Bloody hell... you lucky devil.

Was it cheap or were you earning $$$$$$$ ?

My husband and I got our mortage paid off when he was 33 and I was 36. We just had a couple of tough years putting every spare penny onto the mortgage.
We did it because his employment isn't very secure (but doesn't pay that much to compensate!) and we were certainly glad we did it when he had a 2-year period with no work recently.

[YoungAtHeart]

Originally Posted by Raring_to_go

I totally agree, that’s what we get with a Labour government that did nothing to contain house price inflation....

So much for no more boom and bust....

[Trsvis_Bickle]

Originally Posted by YoungAtHeart

Yes, China's situation is interesting in that they have a slowing economy but housing prices still growing in certain cities. Therefore they are trying to implement policies to prevent a housing bubble in the first place.

Restrictions they have in place include capping the number of homes a family can buy, higher mortgage rates for people buying second homes, and larger deposits.

It's a shame we don't take the same approach here really...

Are they really? The tragedy is that we didn't do the same thing in this country. Now house prices have been chased up to ridiculous levels by irresponsible lending and a lack of regulation, many homeowners are sitting on vast, untaxed capital gains, youngsters can't afford to buy and the whole market has seized up.

[YoungAtHeart]

Originally Posted by Trsvis_Bickle

Are they really? The tragedy is that we didn't do the same thing in this country. Now house prices have been chased up to ridiculous levels by irresponsible lending and a lack of regulation, many homeowners are sitting on vast, untaxed capital gains, youngsters can't afford to buy and the whole market has seized up.

I completely agree.

I personally wish the government would slowly raise interest rates to allow the 'bust' to happen and at the same time, put in sensible regulations along the lines of what the Chinese has done. It'll make us all better off in the long run.

Instead of continuously low interest rates plus QE which will make all of us poorer in the long run...

[electron]

Quote
I personally wish the government would slowly raise interest rates to allow the 'bust' to happen and at the same time, put in sensible regulations along the lines of what the Chinese has done. It'll make us all better off in the long run.

Instead of continuously low interest rates plus QE which will make all of us poorer in the long run...



Strongly agree with this, put interest rates up for savers.
Remember savers are in the majority over debtors, who caused this fiasco, together with greedy bankers.

[alias alias]

Germany is starting 'Right to buy' and the young want to own.

"But rental subsidies and protections have started to fade in the last four years under Hartz IV, the government's welfare and labor market reform program. According to a Dresdner Bank estimate, 10,000 rental households will be offered the chance to buy the home they live in over the next decade. "

"Real estate experts also predict that home ownership rates will rise simply because of a shift in demographics, as the war generation, who were mostly renters, dies out. Among middle-aged baby boomers, almost 60 percent are home owners and favor a suburban rowhouse with a garden and white picket fence."

"Though high demand forced prices up, rents remained very stable and affordable. That the landlord was often the city or some public entity implicitly meant that rents were subsidized, and below market value."

http://www.dw.de/dw/article/0,,2155971,00.html

[shirlt9]

Originally Posted by radyag

When you can rent. They pay A MASSIVE % of their income for years and then die. Then their ungrateful relatives get the house and immediately sell it, pocket the money and spend it on a load of shite. I simply ask, what's the point?

Its cheaper to buy than rent..and if you have a family sized house you can always sell up and buy something smaller when the children have left home..and pocket the difference,or pass it on to your children..I love my children unconditionally and do the best I can for them,dont see why i wouldnt want to leave them something..I dont understand why people pay dead rent money all their life to be honest..

[Rhumbatugger]

if you've got the opportunity, and have enough money, you buy.

If you bought before the damned ridiculous boom, you are lucky.

If you didn't or couldn't, you save or you adjust.

I missed it, raising my child on my own and couldn't afford it, and then it rapidly became totally out of my reach.

You live with what you have, you bought if you could, you make do if you couldn't.

I am very lucky, I have a fantastic home, and am swapping it for a smaller flat in the most prestigious and expensive part of the city, in a very small block amidst a lot of hyper expensive ones.

Housing Associations for the win.

[Raring_to_go]

Originally Posted by alias alias

Germany is starting 'Right to buy' and the young want to own.

"But rental subsidies and protections have started to fade in the last four years under Hartz IV, the government's welfare and labor market reform program. According to a Dresdner Bank estimate, 10,000 rental households will be offered the chance to buy the home they live in over the next decade. "

"Real estate experts also predict that home ownership rates will rise simply because of a shift in demographics, as the war generation, who were mostly renters, dies out. Among middle-aged baby boomers, almost 60 percent are home owners and favor a suburban rowhouse with a garden and white picket fence."

"Though high demand forced prices up, rents remained very stable and affordable. That the landlord was often the city or some public entity implicitly meant that rents were subsidized, and below market value."

http://www.dw.de/dw/article/0,,2155971,00.html

Well that is a refreshing news item.

I have consistently argued on this here forum that Germany have got it all wrong with their low rate of home ownership preferring instead to rent.

[37 Years]

Originally Posted by ganderpoke66

Some people love having a huge financial albatross around their necks for 20-25 years.

I see it as better value than renting and when I retire I won't have to find the money to pay the mortgage as it will be paid off.

Who would pay my rent if my pension didn't cover it ?

I'd have to go cap-in-hand to the state. No thanks !!