Buying property is never a coherent retirement plan unless
you know exactly when the boom/bust cycles will be and can avoid a divorce. It can work but it is a massive gamble.
( number5 has been fighting tramps and losing., Thu 28 Feb 2013, 17:54, 1 reply)

If you deliberately use it as a retirement investment then it can work fine.
In the same way that you would gradually convert your high-risk share investments into low-risk bonds and cash as you approach your intended retirement age, you can translate your property back into cash by re-mortgaging or selling. In the meantime, if the rental market is buoyant (and it's never not buoyant as far as I can see) then you're getting a better annual return than typical dividends. The property market crashing just as you intend to retire is no different to the stock market crashing just as you intend to retire. The downside is that you get nothing like the tax advantage that you get with official pension funds. And if you're some sort of bellend and take out an interest-only mortgage then you are entirely at the whim of an ever-increasing market in which case you deserve to spend your final days eating catfood.
( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 18:51, closed)

^ third dullest thing I've ever typed into the internet ^

( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 18:51, closed)

Cheers

(woocfot friends with Sacha Distel, Thu 28 Feb 2013, 19:18, closed)

Cheers.

( Dr. Shambolic je suis charlie, Sat 2 Mar 2013, 14:47, closed)

plus, mortgages are cheaper as a means of asset conversion.
Each payment is conversion of cash to property. Regular payments to any unitised investment vehicle are subject to annual charges. And inflation isn't very kind to low volatility investments, but exceedingly kind to mortgage borrowers. The only sensible option is to have a spread of non correlated investments.

HTH xx
(dozers, do fuck off ur a nob m8, Thu 28 Feb 2013, 19:54, closed)

I remember when people would come to qotw
and post amusing stories.
( monster munch person, man, woman... camera... TV?, Thu 28 Feb 2013, 20:40, closed)

Cheers.

( Dr. Shambolic je suis charlie, Sat 2 Mar 2013, 14:47, closed)

Seconded.

( number5 has been fighting tramps and losing., Fri 1 Mar 2013, 14:02, closed)

Fair enough
The divorce comment still stands though (appreciably this is less predictable than even the economy I suppose).
( number5 has been fighting tramps and losing., Fri 1 Mar 2013, 14:06, closed)