Equity Release to buy a boat

[Capt. Clueless]

There's 2 of us, that's all, now the nest is empty. We downsized to a 1 bed flat, from a 3 bed bungalow. Best thing we ever did. Very cheap energy bills (and being 1st floor get heat from below), garden to enjoy, but done by gardeners etc. That's how we can afford to do what we do.

 

[Tranona]

There's 2 of us, that's all, now the nest is empty. We downsized to a 1 bed flat, from a 3 bed bungalow. Best thing we ever did. Very cheap energy bills (and being 1st floor get heat from below), garden to enjoy, but done by gardeners etc. That's how we can afford to do what we do.

On the other hand I have done exactly the opposite and increased the size of my house so that I can live downstairs if i become an invalid and have accommodation for a carer if necessary. Objective is to minimise the need for going into care and maintain independence as long as possible.

Just illustrates the point I was making earlier - how one lives and arranges one's affairs is an individual personal decision. In my case I do not need to use any of the equity in my house to achieve that objective, but if I was in a different position I would have no hesitation in using some form of equity release to achieve my objective. Maintaining independence is far more important to me than passing on capital to my children. Fortunately they agree with me.

 

[pvb]

Is this really the time to be taking advantage of "interesting" new borrowing wheezes where some salesman is going to get a very nice and immediate slice of the action before he/she/they disappear over the horizon, probably on very nice motor yacht indeed..

Many financial arrangements involve commission payments. Should we all be avoiding pension funds, loans, insurance policies, etc??

 

[fisherman]

What sort of longevity can be expected from a canal narrowboat?

 

[bedouin]

What sort of longevity can be expected from a canal narrowboat?

Several decades - those things are pretty much indestructible and can be repaired by any welder!

 

[mjcoon]

And ended in the South Sea's.

I was going to ask whether the South Sea Bubble was earlier than the tulip rampage. But my history knowledge was always a bit sketchy...

Mike.

 

[GrahamM376]

Many financial arrangements involve commission payments. Should we all be avoiding pension funds, loans, insurance policies, etc??

Avoid no but, treat all quotes with suspicion as the products being sold are based on making money for those selling them. Endowment policies were/are a case in point. Those of us who took policies out in the 60's or 70's generally got a good return but those taken out in later years in some cases haven't even paid out the value of premiums paid and a better return could have been had on a deposit account. Pension funds also took a dive around 1999 and those converted to annuities in the last few years in most cases are well below the previous forecasts. As we get older, there's less time to wait for markets to recover so better to be safe and avoid any "get rich quick" schemes.

 

[pvb]

Avoid no but, treat all quotes with suspicion as the products being sold are based on making money for those selling them.

Exactly the point I was making. Any sensible person entering into any significant financial arrangement should take care to check the details. Equity release is no different in that respect from many pension/mortgage/insurance products.

 

[oldgit]

Exactly the point I was making. Any sensible person entering into any significant financial arrangement should take care to check the details. Equity release is no different in that respect from many pension/mortgage/insurance products.

My mistake, thought all the folks inventing new and exciting opportunies were merely doing it to enrich themselves, realise now it is all part of the financial communities desire to make life more wonderful for all those less fortunate than them
Time to buy shares in Porkers and companies importing red braces again ?

 

[Tranona]

My mistake, thought all the folks inventing new and exciting opportunies were merely doing it to enrich themselves, realise now it is all part of the financial communities desire to make life more wonderful for all those less fortunate than them
Time to buy shares in Porkers and companies importing red braces again ?

Products like this only exist if there is a market for them. That is how markets work. Every product, including financial services have people who promote them and make a profit and therefore a living out of them.

If your cynical view held we would still all be living in caves.

 

[alant]

Products like this only exist if there is a market for them. That is how markets work. Every product, including financial services have people who promote them and make a profit and therefore a living out of them.

If your cynical view held we would still all be living in caves.

Nonsense, like supermarkets, they 'create' a need/market & people are fooled into buying a product they never knew they needed & bingo everyone wants one.

 

[[29051]]

Nationwide launched a 'life time' mortgage last week, available up until age 84. As far as I understand it is equity release as no payments are due until you die or go into care. There are early repayment penalties in the first fifteen years but it does allow moving house, or paying off ten percent a year. No idea if it is any good but the press reports were positive.

 

[Tranona]

Nonsense, like supermarkets, they 'create' a need/market & people are fooled into buying a product they never knew they needed & bingo everyone wants one.

Once again a cynical view that is completely the opposite of how it works. If what you say happens I assume you never buy anything as you neither want or need it, therefore nobody would be willing to provide anything if there was no demand.

Consumers come first, providers follow, but as we are all both consumers and providers we feed off each other.

Of course the other conclusion from your statement is that you are indeed a fool, by your own definition.

 

[Tranona]

Nationwide launched a 'life time' mortgage last week, available up until age 84. As far as I understand it is equity release as no payments are due until you die or go into care. There are early repayment penalties in the first fifteen years but it does allow moving house, or paying off ten percent a year. No idea if it is any good but the press reports were positive.

That is an example of the new products coming on the market - very different from the old style products that are rightly criticised by some as being poor value, restrictive, and often mis sold.

It reflects two trends. First the large amounts of equity some people have in their houses in relation to their income and liquid assets, and second changing attitudes to what happens to assets when you die. Plus of course for some a realisation that there might be more value in using some of that capital while you are alive.

There are no pockets on a shroud.

The real challenge is to achieve a satisfactory balance between consumption and your asset base while not running out before your time comes!

 

[alant]

Once again a cynical view that is completely the opposite of how it works. If what you say happens I assume you never buy anything as you neither want or need it, therefore nobody would be willing to provide anything if there was no demand.

Consumers come first, providers follow, but as we are all both consumers and providers we feed off each other.

Of course the other conclusion from your statement is that you are indeed a fool, by your own definition.

Apart from basic food/water/clothes/roof over my head, rest is not a "need", simply a 'want'.
How much stuff have you bought because the seller has advertised it on TV, put it at eye level on a shelf, ticketed the price to grab your attention, packaged to make attractive, sold with subliminal music/messages, because a 'friend' has one?
Having spent much time, listening to conversations between 'bankers', who seemed to do little but 'package' financial products to sell internally to themselves, where there was no 'market' other than the 'false' one created by themselves, I have reason to be "cynical".

 

[Tranona]

Apart from basic food/water/clothes/roof over my head, rest is not a "need", simply a 'want'.
How much stuff have you bought because the seller has advertised it on TV, put it at eye level on a shelf, ticketed the price to grab your attention, packaged to make attractive, sold with subliminal music/messages, because a 'friend' has one?
Having spent much time, listening to conversations between 'bankers', who seemed to do little but 'package' financial products to sell internally to themselves, where there was no 'market' other than the 'false' one created by themselves, I have reason to be "cynical".

I only buy things I chose to buy - whether they are needs or wants.

So are you also saying that you have no bank account, no savings, have never borrowed money and don't have insurance for anything - even your car.

Always a mistake to listen to "conversations" about things you don't seem to understand. Much better to learn about a subject and work things out for yourself.

 

[alant]

I only buy things I chose to buy - whether they are needs or wants.

So are you also saying that you have no bank account, no savings, have never borrowed money and don't have insurance for anything - even your car.

Always a mistake to listen to "conversations" about things you don't seem to understand. Much better to learn about a subject and work things out for yourself.

If you believe that "I only buy what I chose to buy", you are living in isolation somewhere, since we are all influenced by these outside sources, to think otherwise is naive.

 

[mjcoon]

If you believe that "I only buy what I chose to buy", you are living in isolation somewhere, since we are all influenced by these outside sources, to think otherwise is naive.

It's still your choice, even if influenced!

Mike.

 

[alant]

It's still your choice, even if influenced!

Mike.

Really?

 

[lw395]

I can see that some people would do well to refinance their existing home somehow, rather than downsize.
Say it costs £5k in estate agents, £2k in solicitors, £3k, £1k in removals, in stamp duty to move house...
Then you pay over the odds for a smaller property available at the right place and time.
Everybody's big picture is different.