gdb wrote:You can buy abroad for much cheaper than in the UK. (And the food is cheaper, and the alcohol.... ).
When you get your pension, you can then move abroad and live there. (You will still receive your pension even if you move abroad so long as it is to another EU country).
But is your state pension not then frozen at the amount when you leave the country? ie. no annual increases to track inflation (maybe it's changed, it certainly used to be the case). Plus your UK pension is in GBP so a drop in the value of the pound and your income rapidly evaporates (I remember the news stories about the ex-pats in Spain when the Euro started to appreciate in the late-90s/early-noughties).
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That may be the case still, I'm not sure. It'd certainly be worth checking out.
Devaluation can work both ways though. And, of course, laws can change over time in regards to pensions (for better or worse!).
Plus, the lower property costs of buying abroad could give you more money per month - for 25+ years - to invest in a private pension. So there are ups and downs to be considered.
in relation to council and housing assosiation housing, we were down in the list for 3 years before we got offered anything. then when we did get offered somthing it was in the worst street in barhead ( not the nicest town in scotland! ) and they were wanting around 450 a month for a 2 bed semi. i refused as i had reciently veiwed a 2 bed bottom floor brand spanking new flat in stewerton ( a village much nicer than barhead ) for 350 a month. the council house came without carpets or anything and this new flat was lovey and modern inside with a lovely kitchen, bathroom and en suit.
we ended up just staying with my parents for a few years so we could save money to build our house in macedonia instead. which we are doing right now! ( literally taking a break from plastering round the new window frames at the moment, and to have an ice cream as its hot hot hot! )
ah, my point being its not allways cheaper to rent from the council, and no doubt you'll get stuck in a terrible area too.
yes move abroad! it will be better!
i stay home with the kids and my husband worked in scotland and we wouldnt be able to afford a morgage in the UK. maybe we'd just scrape by but our life here is much better as nither myself or my husband are employed here, supposed you'd say we're self employed now, and we spend lots of time together with the kids at the farm now.
'If you just close your eyes and block your ears, to the acumulated knowlage of the last 2000 years,
then morally guess what your off the hook, and thank Christ you only have to read one book'
GeorgeSalt wrote:But is your state pension not then frozen at the amount when you leave the country?
No, provided you live in one of the countries that the UK government have reciprocal agreement. There is a list on the UK pension web site, but it certainly covers all countries in the EU as well as others, I believe USA and Australia are also on the list.
What you won't get is a bus pass or fuel allowance but you do get the Christmas bonus
One thing to note though is that you have to apply for your state pension in the LAST country you worked in, so it's maybe worth finding out what the local pension is in your prospective country. The UK has a pretty mediocre rate compared to some countries.
Also keep your UK bank account, then you can have your UK pension paid into that in Sterling, otherwise they pay you in your local currency (Euros) at the exchange rate of the day.
Tony
Disclaimer: I almost certainly haven't a clue what I'm talking about.
I think the average Rent is £675 pcm, and average house price is £160k ish, The interest on the full £160k is £600 a month, AT THE MOMENT.
You then need to actually start to repay the capital, £550 a month over 25 years.
So IF you could borrow all the money, then the interest is cheaper than the rent, but the repayment of the borrowing is higher.
So basically all things being equal at the moment you are really about £100 a month worse off renting than buying. With the costs of buying or selling a house with legal and stamp duty etc being £5,000 minimum if you plan on moving in the next 5 years then you would still be better of renting.
To continue the analogy, if you could afford to Rent, same as interest, and at the same time save £550 a month into an investment of some kind, at the end of 25 years you could then use that money to provide you with an income to pay your rent in your retirement.
So that is your choice really. Invest in a house or invest in something else, your not missing out, and as I assume you couldn't afford to buy a house or rent and save an extra £550 a month, then really it's not worth worrying about.
House prices in the last 40 years have on average doubled every 10 years, but I can't see that happening again in the next 10 years.
Also location needs to be factored in, go North and you can save £100k from the house price, with rents being similar, so buying would be more affordable in Bradford, than Brighton.
Either way the thing to just try and factor in is that what ever you pay in Rent or Interest, you should TRY and save as much again if renting, or use it to repay a mortgage..... Yeah I know, I can't believe I wrote that, but it's kind of where you would get to if you were actually buying a house, and it wouldn't seem as bad to me being "unable to save as much as we would like this month" than "we can't afford to get on the property ladder" if that makes any sence at all, I am an accountant, and I forget that I have a strange brain when it comes to these things!
Well I reread my post ( a first!) and I think it makes sence, so I'll put it out there.
Millymollymandy wrote:Bloody smilies, always being used. I hate them and they should be banned.
No I won't use a smiley because I've decided to turn into Boboff, as he's turned all nice all of a sudden. Grumble grumble.
So basically all things being equal at the moment you are really about £100 a month worse off renting than buying. With the costs of buying or selling a house with legal and stamp duty etc being £5,000 minimum if you plan on moving in the next 5 years then you would still be better of renting.
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But after five years of renting, you have spent all the money. It is in the landlords bank account.
After five years of buying, you *could* have tens of thousands of pounds in equity.
This is all built on some false middle-class,b---s--t premiss....you need 20% deposit MINIMUM.Cheapest half decent place round here:$150 grand.For a few people(actually for the overwhelming majority) this might as well be half a million.
oldjerry wrote:This is all built on some false middle-class,b---s--t premiss....you need 20% deposit MINIMUM.Cheapest half decent place round here:$150 grand.For a few people(actually for the overwhelming majority) this might as well be half a million.
True. But mortgages don't work the same way in other countries.
In Sweden, for example, you need just a few thousand as a deposit. And all you have to pay off is the interest. So mortgages over here are very cheap.
Indeed, as I say there is no right answer, prices may go up, they may go down and then the Landlord looses.
£30,000 as Jerry says is a STUPID amount to have to save BEFORE you can buy a modest house.
But as I said, it's life, we have to put up with it, we have choices, it's not about being denied, it's about choosing our own path in life, and being happy with it.
Last edited by boboff on Sun Jun 03, 2012 8:46 am, edited 1 time in total.
Millymollymandy wrote:Bloody smilies, always being used. I hate them and they should be banned.
No I won't use a smiley because I've decided to turn into Boboff, as he's turned all nice all of a sudden. Grumble grumble.
Location is very important. House prices vary wildly around the country. Swindon isn't too bad, especially compared to the rest of the South West. There are decent two bed houses available in Swindon for around £100k. If you're willing to do work, then you can get a three bed with a garden for that money. That means a £20k deposit which, sadly, is still a lot of money to save for most people.
oldjerry wrote:Well Norway is not really that far away...........!
Edited, as both offensive and ignorant!
Sorry
Millymollymandy wrote:Bloody smilies, always being used. I hate them and they should be banned.
No I won't use a smiley because I've decided to turn into Boboff, as he's turned all nice all of a sudden. Grumble grumble.
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