I don't understand the point in buying a home when all the fees go to care

[whatwhatinthebutt]

I hear 'you need to leave something to your children' but then what if it all goes on care?

You had a home that you had to maintain and repair, but you can't leave it to your children because you have to go into a care home.

It seems wrong or strange, because why are we told to do this if it's so likely it will all go before the children benefit from the hard work of the parent?

Care home fees seem to be something around 2 grand a week, so 10 grand a year. How long to people usually last in care homes? Is it oftentimes they die in there?

And how does it work? Say my dad goes into a home, they force me to sell the house to pay, I get a lump of cash, then just give that to the care home and I get what's left when he dies?

I recall that a study found that 40% of people never mover after 50 yrs old. Economically it would make sense if couples sold their home gave a big chunk of equity to their kids to be used as a large deposit on their first home, and moved into a home with a value close to the nil rate band £650k+ for a married couple. Of course, if your kids get married and divorced, half of the equity could end up with you children's ex...

It wouldn’t be any big deal. You’d just get social housing. If you were smart you’d already be in social housing.

I think that's how it works on the continent. People continue to pay rent, old people's homes are either free or you take an additional insurance. Rent control means prices are more stable and you cant get kicked out.

For quite a few Londoners with large mortgages - they might very well end up paying off their mortgage until their are 70 and then start paying for a care home. When the rules for care homes were set up most people were renters (this was before Thatcher) and didn't pay for care homes. Then there was a period of people buying houses for cheap and having lots of equity. Currently, for Londoners with massive mortgages of today - the only advantage of ownership might be stable housing i.e. not getting kicked out in the meantime. Increasing interest rates actually means that you monthly payment can go up even if you own your house due to rise in rate just lie your rent.

🤣🤣🤣🤣 yep, there's loads of suitable social housing going free. Housing departments are having to drag people off the streets to fill the places.

Come on, do you really think the average 80 year old single pensioner won’t get into social housing, or get housing benefit for their private rent?

Or maybe you know pensioners paying £600 minimum pcm for a one bedroom flat from their pensions?

We own our home outright. We don't plan to ever go into a care home. We have enough money to pay for round the clock care in our own home, if necessary, and have made sure that our children know that is our wish.

We have made it easier, though, by downsizing from a large farm into a bungalow in an "active over 55 community" as they're known here in the US, with all outdoor maintenance pest control, etc. done for us, near to shopping, medical care, etc. The years of payments on the farm allowed that, and the appreciation on the farm left us in a nice financial position.

Not to mention that when we die, our children will have a great big asset to sell and use for their children. Win win all around.

Come on. Do you really think there is always suitable accommodation available? Seriously? I actually know someone who was in that situation in their 70s. They were in social housing and had never left their childhood home but the tenancy was in her dad's name. When he died in his late 90s she couldn't take on the tenancy as it was a 3 bed property. She had to move in with her sister and it was 2 years before she got a 4th floor 1 bed flat. So, yes, I do think it would be a problem. Without family who could take them in maybe they would end up in shitty temporary accommodation or the umpteenth floor of a tower block with a crappy lift that smells of piss

We bought our house 8 years ago and are trying to pay it all off before we hit 45. It's a small house and we have had to cut back in loads of areas to overpay the mortgage. I just don't want to be paying rent when I'm retired. Social housing isn't free either. You still need to pay rent AFAIK. Our mortgage and prior to that purchase rent is our biggest expense, so getting rid of it is my goal.

the one advantage is that you can fix your mortgage rate and that buys you some time to increase your income. I know londoners with 10 year fixed term mortgage and inflation /pay increases should help them. We were earning combined £75k in 2019 and our mortgage is £1020. Its been 4 years and our mortgage would probably increase to £1400 or £1600 (when we hit 6% bank rate) next july when we need to remortgage. But at the same time, income has increased to combined £120k so we would be fine (already overpaying over £1000 per month anyway).

My neighbour who has lived in the flat opposite me for longer than i have is getting kicked out this year as her rent has increased from 1400 in 2019 to £1800 and her flat mate can't afford the increase.

Care home fees seem to be something around 2 grand a week, so 10 grand a year. How long to people usually last in care homes? Is it oftentimes they die in there?

£2k per week is £104k per year!!

Of course, if the government removes no fault evictions, private renters will be able to stay renting indefinitely without being kicked out by their landlord, which makes this a more attractive option.

Reading with interest. Often thought the same. Dh's mum had little left after nursing home fees. Even the arguments re not renting don't really help.

Not really. There will still be plenty of reasons that LLs can end a tenancy, including wanting to sell. And the more restrictions put on private LLs the less rental property will be available. There's a huge shortage already.

Buy an annuity , it's a gamble but with a guaranteed outcome .

Maybe the point is that you then gave a saleable asset that can provide you with the income you need to pay for fees for a better quality nursing home

My Dad went into a care home at 57. My Mum has Alzheimer’s and at 66 is looking like she will need to go into a care home in the next few years. So both parents in that 10% and relatively young.

When my DM bought her house it was marketed to her that she would have something to pass on to her daughter. It’s not the only reason someone buys a house but at the time it was a big selling point. Housing is so expensive now for many people inheritinance is the only way to get onto the housing ladder, not through lack of “hard work and savings”.

I’ve provided care to both my parents for the last 15 years, my dad before he went into a care home and my Mum now, l’m exhausted. When I have reached my capacity of what I can do for my Mum I know she will have to go into a home and self fund, it’s depressing that even after all the hardwork my family is poorer than those who are lucky enough to never experience dementia.

That's really not going to happen. Plus if I needed my house back to sell and the Tennant refused to go, I'd default on my mortgage. It would be reposted by the bank. The Tennant would be the banks issue.

Yes, really. Get your facts right. Change is coming and not a moment too soon. The days of landlords kicking out tenants because they want to sell up (and other reasons if they’re not stated in tenancy agreements) will soon be over:

https://www.which.co.uk/consumer-rights/advice/what-are-my-tenants-rights-when-renting-from-a-private-landlord-aKDPK8C8KfMd

How rude. My facts are perfectly correct. Under Section 8 evictions, which will continue, there are 17 grounds for eviction which include the LL selling or moving back in; or the property requires development.

The RRB also give LLs stronger powers to evict tenants in arrears.

Ahead of the RRB changes more and more LLs are selling up and you can expect LLs to apply even more rigorous checks on tenants' finances. In university towns without strong controls on HMO numbers it will also take out family rentals and push them into the lucratively student lets market.

The private rental market is already a mess and this legislation will not deal with the underlying structural problems of the UK's housing market.

Most people will have paid their mortgage off by the time they retire, so that’s one less expense out of the pension. And obviously no rent to pay either. Plus it’s secure - no landlord is suddenly going to decide he wants to sell, and kick you out.

Not everyone by any means ends up in a care home, and many who do, will not live for more than 2-3 years. I do know there are exceptions - my own DM lasted for 8 years, but she was very unusual.

Re care home fees.
my mums fees were £650 a week. The staff were amazing and residents thrive In Their care.

Do not think that high fees = better care.

A small cosy home was ideal for my mum where we knew all the staff.
Unfortunately Mum died in February, but as a family, we still call for a coffee and a chat and take treats for everyone.

older people do tend to vote Tory and did on the whole vote Brexit. 60%. Yes, a majority, but not quite such a majority as to say “on the whole”.

Why, just because you've got old, should you not have to pay to live any more? Why, just because you’re old, should you have to pay all the extra costs arising from an illness? I don’t think people would mind paying what they’d usually pay to live, I don’t think they’d mind paying twice as much. But £1000 a week?

You’re correct to point that out but come on you know that people use the term on whole to mean the majority you’re being a bit picky! What was really being point out here is that is not a horrible thing to say - rather than being precise about figures.

This. Have you seen the state of some 'free' care homes?

There aren’t any ‘free’ care homes. The council will house you where your needs can be met, that may be a cheaper option or it may not, it’s a gamble really. Plenty of full paying clients live side by side with people who have never paid a penny. It isn’t fair no matter how you slice and dice it