For the last few years I've been living (renting) and working in Central London. I can't afford to buy a decent place round here because my salary isn't high enough, but this is where I want to live. I don't want to move out of town. My rent, I think, is around the same as a mortgage payment would be.
On the upside, I don't have to worry about property prices, building maintenance, or being tied down if my circumstances change. On the downside, I don't benefit from increases in house prices - and one day when I retire, I'm still going to have to pay rent while others have repaid their mortgages and don't have to pay anything.
So I decided that what I'd do is make massive payments into my pension plan, with a view to taking a lump sum on retirement and buying a house outright. I'm a higher rate taxpayer.
I doubt I'm the first person to have had this idea, so I'm interested in your views and experiences. Am I missing anything? Could this backfire on me?
2007-06-03
00:53:53
·
4 answers
·
asked by
Snakey B
4