Re:Early Retirement (2006)
by nly on Thursday August 05, 2021 @04:30AM
(#28071217)
What's the alternative?
Stock market returns may be muted and uncertain but cash pays nothing for sure.
The property market in the UK is at record highs in terms of price:income ratios, but it can still make sense to buy rather than rent due to record low interest rates (Gross rental yields being 4-6% and interest rates 1.5-4%), and the certainty it gives you (Investing your 20-25% deposit won't do you much good if house prices and rents outstrip the stock market in the 20-30 years before you retire)
Stock market returns may be muted and uncertain but cash pays nothing for sure.
The property market in the UK is at record highs in terms of price:income ratios, but it can still make sense to buy rather than rent due to record low interest rates (Gross rental yields being 4-6% and interest rates 1.5-4%), and the certainty it gives you (Investing your 20-25% deposit won't do you much good if house prices and rents outstrip the stock market in the 20-30 years before you retire)