Pensions

[jamin100]

In which case your judgement has been coloured by the excessive house price rises of the 1980s and 1990s.

Not really. I haven't brought them to sell on for a profit. They are rented and will stay that way until I die, then hopefully my children will rent them out along with our house to subsidise their income.

 

[snailracer]

Not really. I haven't brought them to sell on for a profit. They are rented and will stay that way until I die, then hopefully my children will rent them out along with our house to subsidise their income.

It seems you are fortunate enough to have enough assets to effectively live off the "interest" after retirement.

 

[beastie]

Hope your properties are insured then....

What type of idiot would NOT insure their property?

 

[snailracer]

What type of idiot would NOT insure their property?

Someone who can afford to self-insure i.e. they could afford to rebuild it, if it burned down.

 

[beastie]

Someone who can afford to self-insure i.e. they could afford to rebuild it, if it burned down.

Well yes but ... in that case I expect the inheritance would be far greater than a couple of properties.

 

[snailracer]

Well yes but ... in that case I expect the inheritance would be far greater than a couple of properties.

Probably, but note that rebuilding a house costs a lot less than the purchase price e.g. a £400k house probably costs £150k to rebuild, the difference is casino money for bankers.
Also, house insurance usually has personal liability insurance thrown in - few people have enough cash to reasonably budget for the possibility of being sued. However, personal liability insurance can be bought separately, so, strictly speaking, it's not intrinsically house insurance.

 

[ASC1951]

Probably, but note that rebuilding a house costs a lot less than the purchase price e.g. a £400k house probably costs £150k to rebuild,

Depends where you are. In large parts of the country, the cost of site clearance and complete rebuild of e.g. a mid terrace house can easily be more than the house is worth.

the difference is casino money for bankers.

The difference is the value of the land, as Any Fule Kno.

 

[snailracer]

Depends where you are. In large parts of the country, the cost of site clearance and complete rebuild of e.g. a mid terrace house can easily be more than the house is worth.

The difference is the value of the land, as Any Fule Kno.

The "value" of land is the dodgy banker's stock-in-trade - as any Japanese property owner knows.

 

[ASC1951]

Site value is every bit as real as house value, just harder to quantify because it depends on cyclical movements a few months or years in the future. There is nothing unusual or necessarily 'dodgy' about that..

 

[snailracer]

Site value is every bit as real as house value, just harder to quantify because it depends on cyclical movements a few months or years in the future. There is nothing unusual or necessarily 'dodgy' about that..

When those future "cyclical movements" are fraudulently manipulated wholesale by financial organisations, often in connivance with the state, then I would describe it as dodgy.