PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Into the frying pan!

Options
Financially_Backwards
Financially_Backwards Posts: 35 Forumite
First Anniversary Combo Breaker First Post
in House buying, renting & selling
So part of me needs advice, the other part needs cheering up. Or maybe just some different rationale.

I'm living in Crewe, house prices for new builds are around £170-200k. I'm poised to have set aside a 5% deposit within half a year, whilst paying rent at £550 a month. Financially that rent is money down the drain, whereas paying off a mortgage will build assets. So, I'm all set to ditch renting and make my move on the property market this year.

However... I've just been offered almost double my salary to go work in Oxford. House prices seem to start at £350k for new builds, which are hard to come by as there are none within 10 miles of Oxford. I look at the length of a 10 mile commute, thinking it'll be 20 minutes or so - but it appears more like 1 hour in a morning with heavy traffic that Oxford is notorious for.

A short commute is essential to me as I have problems with fatigue (awaiting referrals, potentially fibromyalgia or Chronic fatigue syndrome -current tests seem to rule out CFS).

So right now I'm wondering whats my best options if I move. If I rent I'll be throwing away an easy £1k a month given Oxford prices, and even at the higher pay it will take more than 6 months to get a deposit unless I can find a new build with 5%. The help to buy ISA scheme appears to be a joke - what good is £200 a month saving unless you started 5 years before the government launched it?!

...What would you do? Right now I'm feeling like all my hard works just been undone, in a strange first world problems way that I shouldn't technically be unhappy with...
«134

Comments

  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Options
    1. Do you want the job? (other considerations aside)

    2. The interest on your mortgage is also 'dead money' and you'll have to pay for maintenance.
  • goodwithsaving
    goodwithsaving Posts: 1,311 Forumite
    First Anniversary Name Dropper First Post
    Options
    Take it from me, sometimes a longer commute and more tiring life isn't worth it, even for double the salary.
    Go with your heart. Life is too short. If Oxford is what you want, then go with it and figure out the rest later. If you like Crewe and think Oxford will play havoc with your health, remain in Crewe.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    Options
    Twice the salary is not much use if living costs including housing are 3 times as much as Crewe. Oxford is expensive. You will probably be worse off even on double the salary.
  • Financially_Backwards
    Financially_Backwards Posts: 35 Forumite
    First Anniversary Combo Breaker First Post
    Options
    ViolaLass wrote: »
    1. Do you want the job? (other considerations aside)

    2. The interest on your mortgage is also 'dead money' and you'll have to pay for maintenance.

    1. Yup! The money isn't as important as job satisfaction! I could open a million threads on the violations of employment law I'm currently subjected to!

    2. I agree, but I worked out how much interest I'd pay compared to the total mortgage (cheated - I just compared the rate of interest free against a 10 year fixed mortgage..gives a good idea of the amount). My plan will be to overpay despite there being some fee for doing so....and also to just sit back and let the government take their interest on the 20% equity loan as the interest on that will be nothing against the interest on the mortgage.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Options
    Financially_Backwards wrote: »
    1. Yup! The money isn't as important as job satisfaction! I could open a million threads on the violations of employment law I'm currently subjected to!
    You /want/ this job or you don't want your current one?

    2. I agree, but I worked out how much interest I'd pay compared to the total mortgage (cheated - I just compared the rate of interest free against a 10 year fixed mortgage..gives a good idea of the amount). at 3% and borrowing £160k, initial interest is £400 per month. Then factor in maintenance. It isn't clear cut in the early years. My plan will be to overpay despite there being some fee for doing so. Why?...and also to just sit back and let the government take their interest on the 20% equity loan as the interest on that will be nothing against the interest on the mortgage.

    The interest may be low but that way the government will continue to own 20% of your house. If your house increases in value, so does the loan.
  • Marvel1
    Marvel1 Posts: 7,172 Forumite
    Name Dropper First Post First Anniversary
    Options
    What are prices like for non new build?
  • moneyistooshorttomention
    moneyistooshorttomention Posts: 17,940 Forumite
    Options
    Any chance of flexitime working in the new job? - so that you could travel at times when there is less traffic on the road.

    Any chance of working from home at all in the new job?
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Options
    cjdavies wrote: »
    What are prices like for non new build?

    Still expensive.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • -taff
    -taff Posts: 14,501 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    You can commute from outside of Oxford. Find some villages/towns outside and look at the transport links
    Shampoo? No thanks, I'll have real poo...
  • pinkshoes
    pinkshoes Posts: 20,082 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Options
    -taff wrote: »
    You can commute from outside of Oxford. Find some villages/towns outside and look at the transport links

    Hahahahahaaaaaaaaa!

    Nice villages within a reasonable commute of Oxford centre are even more expensive, and given the traffic is so hideous in Oxford, then anything outside the ring Road could potentially take ages to get to work, depending on where the OP has a job.

    I would personally not recommend Oxford as salaries do not reflect the cost of living.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards