arrodbo Posted June 7, 2010 Share Posted June 7, 2010 Selling my house soon and moving to Devon. I have no mortgage and will get around £225,000 for my house. I am retired and 60 plus wife of course. Should I buy again or should I rent somewhere and invest my capital in rock solid bonds with a regular income. I do not want to go to a bank for advice, I need information from people who have been in the same position. thanks Link to comment Share on other sites More sharing options...
maxofe Posted June 7, 2010 Share Posted June 7, 2010 hello there! personally i would say rent, spend or invest the rest (or a bit of both), im in a similar situation myself, and am feeling incredibly "free" not being a home owner anymore. you are in the position to never experience debt, or the daily struggle to keep up with things like constant property maintenance, gardening, etc. obviously i dont know your personal circumstances, ie, whether you have children you want to provide for (after you are gone)......but make the most of your position, i say, dont plow it all into bricks and mortar!! just my op Link to comment Share on other sites More sharing options...
Redyam Posted June 7, 2010 Share Posted June 7, 2010 It depends if this double-dip recession causes house prices to go down again, instead of up. The markets have been jittery all day, who knows what might happen. If house prices go down, you are going to lose money, and in this situation it is better to rent. Generally house prices head upwards, and it is better to buy a house. You don't lose the money, it is all investing back into the house. Whereas renting is just dead money that you don't have anything to show for at the end of it. Link to comment Share on other sites More sharing options...
Dozy Posted June 7, 2010 Share Posted June 7, 2010 It depends if this double-dip recession causes house prices to go down again, instead of up. The markets have been jittery all day, who knows what might happen. If house prices go down, you are going to lose money, and in this situation it is better to rent. Generally house prices head upwards, and it is better to buy a house. You don't lose the money, it is all investing back into the house. Whereas renting is just dead money that you don't have anything to show for at the end of it. My bold Very true for those in their 20s, 30s, etc. But the OP has retired and could invest the price of his current house to raise some extra income which might cover the cost of rental, or even spend some of it on having a good time. Plus you don't have the responsibility of maintenance when you rent and it's much easier to move if you don't like where you're living. Link to comment Share on other sites More sharing options...
phantom309 Posted June 7, 2010 Share Posted June 7, 2010 I think it is a case of what you would like to do with the rest of your life we have bought a new flat 4 years ago but my wife's family as a better record of long life than mine so we took the view that who ever goes first the one surviving will have a home which is paid for so that takes any worries of a financial nature out of the equation and the children and grandchildren get to enjoy the fruits of our hard work when we are no longer around. The thing to consider is that if you expecting to live for a further 20 years or so you will be paying some where in the region of £60,000 to £80,000 in rent that is using a starting point of £500 to £600 per month I am not sure if this will help your train of thought but may help you to see it from a different point of view. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted June 7, 2010 Share Posted June 7, 2010 Why not take a short term (6 months?) rental in the area you want to move to, then decide. Interest rates are very poor at the moment, and the stock market is pretty volatile. It'll give you the opportunity to take your time deciding exactly where you want to be. Buy the maximum number of Premium bonds you can for both of you, stick the rest in easy access accounts as its a short term situation, and keep your fingers crossed. Link to comment Share on other sites More sharing options...
Aries22 Posted June 7, 2010 Share Posted June 7, 2010 Depends if you are on any type of benefit, pension credit for starters, rent a flat, and give any children/family the money, or the goverment will get it off you just for going to live in a home for the elderly. It's a waste of time these days having money. Link to comment Share on other sites More sharing options...
trevHCS Posted June 7, 2010 Share Posted June 7, 2010 In your case since you've already paid the mortgage you might as well just downsize to something that might be more suitable in the future ideally on one level in a nice area close to the shops etc. then you should have some spare money to invest. If you were much younger I'd say rent don 't buy as there's serious risks in that including expensive problems with the house as mentioned above and even the area changing, eg: council / housing association buys houses nearby and moves in the local drug dealers...happened to my g/f in a previously nice part of town. But in your case you've already spent out on the mortgage so if you set yourselves up with a suitable house for your retirement then just keep the cash and have a nice retirement. Trev Link to comment Share on other sites More sharing options...
charlie9865 Posted June 8, 2010 Share Posted June 8, 2010 My Mother in Law sold her house and moved in to a council house. She invested her money, where as I am now looking to buy my next home if in the right area. I just set up my own business if after 2 yr I am doing well still, I will definatly buy. I earn a good income so have paid off any debts I had making it easier for me to get a morgage. Link to comment Share on other sites More sharing options...
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