Page 4 | Is anyone else holding off from buying until they inherit?

cptartapp · 21/10/2023 18:47

TreesinthePark · 21/10/2023 08:45

I agree, buy the coat!

My grandparents were invited to a wedding at a hotel but rather than book a room and stay, they were planning to do the long drive home same day. I was really frustrated that they cannot bring themselves to spend money they can afford on enjoying themselves and making life a bit fun/comfortable.

There's no inheritance worth having if you have to watch people you love be so miserly to themselves while they're alive.

PIL (very well off) went to the Lakes in their 70's and stayed in a youth hostel to save money.
Utterly bonkers.

ScoobyDoesnt · 21/10/2023 19:14

You can never predict inheritance.

DGM lived to 97, and was in a care home for the last 6 years, at a cost of over £300k. Assets were split to 6 beneficiaries who still ended up with a nice 5 figure sum, but not what they maybe expected (I wasn’t a beneficiary btw, I’m one generation down from those who did benefit!).

WowIlikereallyhateyou · 21/10/2023 19:17

What a sad way to live your life. Buy your own stuff, with money you made yourself and be proud of it,instead of sitting on your arse waiting for what might never happen!

loseweightpleasegod · 21/10/2023 19:24

It is a sad way to plan a future. I personally would never have planned my life like this.

I would never encourage my only child to plan his future with any potential inheritance in mind.

Two circling vultures come to my mind when I read your post.

Riverlee · 21/10/2023 19:29

How do you know you are the beneficiaries of your grandparents? Won’t your parents inherit? Or they could leave it to the local donkey sanctuary.

Miamonthly · 21/10/2023 19:34

Hold off until property crash, then buy. Inheritance could be too long and market recovered by then… you could face needing a small mortgage in addition and be too old to qualify.

TerfTalking · 21/10/2023 19:36

Aldicrispsareshit · 20/10/2023 13:26

I bet they all wish they'd shared the wealth with the grandkids at a younger age!

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I doubt it. The standard of care they would have received without a significant contribution from their own funds would have been pretty dire. I’m damn sure I wouldn’t want to be in care for 14 years on the basic council funded contribution.

SheilaFentiman · 21/10/2023 19:38

@Pammela2

4 per day is not the social care minimum, it is the social care maximum. And it is subject to assessment - my mum pays for three carer visits a day that she strictly “doesn’t need” as far as assessments are concerned, but if not, she would be on her own all day since my dad went into a home (also self pay) 18 months ago

The visits cost my mum £13k a year. A lot less than care homes, of course, but still
meaningful money to find on top of food, electricity, cleaner etc.

xyz111 · 21/10/2023 20:10

A inheritance isn't guaranteed. They could end up in a care home and all your inheritance be spent on that.

GrumpyPanda · 21/10/2023 20:15

sigletty · 20/10/2023 10:45

We currently rent a small flat in a naice area. Because of interest rates, a mortgage on a place in this area of London would cost a fortune. Likely double what we pay in rent.

As awful as it is to say, we have decided we won’t look at buying until we inherit. Obviously nothing set in stone, but it’s not unlikely we’d inherit a significant sum in the next 5-10 years. We’re both only children and the only grandchild to two very elderly and dear family members.

From the details you give, it sounds like given your circumstances you shouldn't just hold off buying, but that other things being equal it makes much more sense for you to continue renting and invest the savings in other equally appreciating asset classes.

It's a very simple calculation. Look at your annual rent payments compared to the price to buy a comparable property - that's the rent to buy ratio. Buying makes sense if you pay less than say 20 annual rents. Higher than that, be very careful. Obviously this relationship will change depending on the market and also the kind of housing you're looking at. Yes you'll be paying rent - but with a mortgage, there'll be interest on capital as well. You also will be foregoing the gains you could be making from alternative investments.

https://www.investopedia.com/terms/p/price-to-rent-ratio.asp

Price-to-Rent Ratio: Determining if It's Better To Buy or Rent

The price-to-rent ratio is the ratio of home prices to annualized rent in a given location and is used as a benchmark for estimating whether it is cheaper to rent or own property.

https://www.investopedia.com/terms/p/price-to-rent-ratio.asp

Pipsquiggle · 21/10/2023 20:53

It's a really risky strategy as you don't control any component of this plan.

The big risk is prolonged care costs that could wipe out all savings and assets.

Essentially I wouldn't bank on this money and get on and live your life. Save and buy something if it comes up.

Cedricsmum · 21/10/2023 22:35

Well I’m 70 and still have both parents. Husband is 76 and has one parent. So glad we didn’t wait for our inheritances 🤷‍♀️

floofbag · 22/10/2023 06:36

My mum has a million pound estate but had a stroke last year and now has vascular dementia .

Don't ever bank on inheritance. We have dropped £100k on care already ! She isn't looking like she is leaving us anytime soon so I expect it will all be gone .

Just buy what you need and if there is any left you can pay off the mortgage .

Twiglets1 · 22/10/2023 07:20

I believe @sigletty is expecting to inherit from grandparents not parents which seems to have been forgotten by people talking about their parents.

Presumably they have had a conversation with their parents about it and expect to get an inheritance when their grandparents die. That is what some families do - pass on a large chunk of the inheritance from grandparents to grandchildren.

Ididivfama · 22/10/2023 07:23

I find these threads a little gross. Actively waiting for someone to die to buy a place? Will you feel resentful if nothing happens for 10 years plus and you don’t get what you want?
Live your life as you wish and any inheritance is a surprise bonus.

Brumbies · 22/10/2023 07:27

sigletty · 20/10/2023 10:45

We currently rent a small flat in a naice area. Because of interest rates, a mortgage on a place in this area of London would cost a fortune. Likely double what we pay in rent.

As awful as it is to say, we have decided we won’t look at buying until we inherit. Obviously nothing set in stone, but it’s not unlikely we’d inherit a significant sum in the next 5-10 years. We’re both only children and the only grandchild to two very elderly and dear family members.

Goodness, you're waiting for someone to die?

Have you heard about care home fees?

You could and probably will, end up renting for life.

SoftKittyBazinga · 22/10/2023 07:29

Never rely on an inheritance for anything. There are so many reasons that may not go your way. Care home fees, surprise gifts in a will, changes in circumstance, all can impact an estate.

plan your future based on what you can earn and afford that way if you do inherit anything it becomes a nice extra to have after a time of grief. But it can never be something you rely on.

marshmallowfinder · 22/10/2023 07:30

Never assume anything. There may be no inheritance at all. Then what? Their money is not your money.