There is one thing being in a position or interest to do it, but there is a completely different matter of HAVING to do it to keep a roof over your families head. The reality is this is beyond average life expectancy and effectively banking on no health issues arising
I like the idea of 'working' ad-hoc for years, but this is totally different to having to work each and every month to make a mortgage commitment into my 80's !
I assume they put private pensions in place to cover the cost in old age, or they rely on the state to take care of them.How do life long renters manage ?
How do life long renters manage ?
Taking into account that the average life expectancy in Ireland is 79.7 (male) and 83.4 (female), this puts the person on 15 years of an interest only mortgage. While in principle, there is nothing wrong with it - I do think it is a different product, and different risk category, than someone who pays interest and capital for a sustained period.Take a couple who retire at 65 today with €100k left on their mortgage and a house worth €300k
The key there is low LTV !!From the lender's point of view, a 50 year interest only mortgage at a low LTV and at market rates is the most profitable loan and lowest risk loan.
It is a good idea to live mortgage and rent free in retirement, to have a big pension and plenty of investments and when you die to leave your children a house and lots of money.
If people are now living until their 80's, its likely their children are in their 50's or even 60's. Surely children would more benefit from the 'leg-up' in their 30's when starting out in life.Why is it a good idea to leave your children a house and lots of money. I've no intention of doing that. Children should earn their own money surely
That's a splendid idea. That would be more my thinking on the matter. I've no issue with helping them buy a house, as long as they demonstrate a work and savings ethic. Rewarding that is the right way to go instead of adult children thinking they are 'entitled' to an inheritance.If people are now living until their 80's, its likely their children are in their 50's or even 60's. Surely children would more benefit from the 'leg-up' in their 30's when starting out in life.
One of the best approaches I have seen is from someone I know (albeit they were very wealthy) - they offered to double the deposit the children saved on their own to buy their first house. A great incentive for them to save as much as they could !
I will send you the bill for the adviceThat's a splendid idea. That would be more my thinking on the matter.
Why is it a good idea to leave your children a house and lots of money.
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