One observation I have made regarding the UK property market is that although over 70% of people now own their own house, perhaps when the demographic crisis kicks in in years to come (ie an aging population+not enough young people=not enough 拢拢拢 to fund state pensions) that people will be compelled to use the equity in their homes in leiu of a pension meaning that there will ultimately possibly be a sting in the home ownership tail..
Another reason this is likely to happen is that when the welfare state was founded the first generation of pensioners (who obviously had not put money in the pot and were supported by that generation of workers..) did not en-masse have such a valuable asset.. You might be right - and that's why I'm doing everything i can to provide for myself in retirement.
It is the only sensible thing to do. At the moment if you require nursing home care, the Government can force you to sell your house to pay for that care. Therefore, you have paid something your whole life and hoped to pass it down to your children or relatives and you end up with nothing. Remember that there are ways to spend the equity in your home without selling it. The most obvious method is to refinance, but there are more creative solutions for the elderly. For example, there are negative mortgages in which a pensioner can give up the deed to his house in exchange for a fixed monthly payment for life. The net result of these options is that the elderly who need to take cash out of their homes may not need to sell those homes during their lifetimes. | 