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    • mp80
    • By mp80 11th Jul 17, 11:14 PM
    • 178Posts
    • 32Thanks
    mp80
    sensible affordability?
    • #1
    • 11th Jul 17, 11:14 PM
    sensible affordability? 11th Jul 17 at 11:14 PM
    Hi

    Me and the missus have been bickering about moving. We currently pay about 600 quid a month on a place.

    She wants to move to a place that would cost about 1500 quid a month, with all the hikes in associated bills, stamp duty of 11k and deposit of around 40k, which would be taken from the equity of our existing home - we have 50k in savings which would cover the stamp duty.

    I'm a 'glass is half empty' guy which can come across as overly negative. We earn 185k between us, which equates to about 9k per month net once deductions, childcare contributions, etc are taken out.

    We will have no debt except one year to run on a car loan, which I could settle.

    This would be a home for a decade or more ideally; the worry is it's top of value as it's been extended and renovated, but that's not a bad thing as we are extraordinarily busy with work, child, life! The other thing, do I sense a sniff of a recession on the way - big incomes are hard to find!

    What do ya reckon? Go for it? Or stick with my conservatism?

    Thanks

    MP
Page 2
    • Marine_life
    • By Marine_life 14th Jul 17, 9:48 PM
    • 801 Posts
    • 1,409 Thanks
    Marine_life
    Me?

    I would sit tight and put the money to early retirement ;-)
    Something witty goes here
    • mp80
    • By mp80 14th Jul 17, 11:05 PM
    • 178 Posts
    • 32 Thanks
    mp80
    Me?

    I would sit tight and put the money to early retirement ;-)
    Originally posted by Marine_life
    I get insatiably bored after taking 2 days off work, so that's the last thing I want to be doing
    • getmore4less
    • By getmore4less 15th Jul 17, 10:58 AM
    • 29,488 Posts
    • 17,626 Thanks
    getmore4less
    Accruing savings, and also unfortunately paying off a 30k loan my wife had from her parents from years ago.

    I still think you're right though, We buy £200 jeans, not £50 ones, etc. That will need to stop, definitely. Just the new house wasn't a priority at the time.
    Originally posted by mp80
    £50 having a laugh
    I like my 501 and get them for around £20 on holiday to the US.

    end of the day it is about priorities.

    If £30k went on debt last year you can spend it on a bigger mortgage this year together with cuurent house costs you will have £3kpm and not notice any change.

    I get insatiably bored after taking 2 days off work, so that's the last thing I want to be doing
    Originally posted by mp80
    I Used to say that but as you get older having the choice is a good option to have just in case you feel different.

    I think around 55 is a good target, at least mortgage free and decent savings/pension pot.

    also you are covered if your joibs decide to retire you.
    • Crashy Time
    • By Crashy Time 15th Jul 17, 12:57 PM
    • 4,543 Posts
    • 2,057 Thanks
    Crashy Time
    On a net of £9K pm you surely cannot be worrying about a mortgage of £1.5K pm?
    Originally posted by lincroft1710

    ...and only have 50k savings? And be asking for advice on here about affordability, why not ask some of the very senior and well off people you manage at work?
    • mp80
    • By mp80 15th Jul 17, 2:28 PM
    • 178 Posts
    • 32 Thanks
    mp80
    Life's not just about saving, holidaying in a caravan in Blackpool and buying Primark clothes, so I can retire at 55 and have a heart attack the very next day, is it?
    • getmore4less
    • By getmore4less 15th Jul 17, 7:05 PM
    • 29,488 Posts
    • 17,626 Thanks
    getmore4less
    Life's not just about saving, holidaying in a caravan in Blackpool and buying Primark clothes, so I can retire at 55 and have a heart attack the very next day, is it?
    Originally posted by mp80
    it's about a ballance and choices.

    currently you seem to be falling into the trap of we don't need to care what stuff costs because you don't have any focus or goals that could make better use of the money.

    Why not do a 20 year plan for the £2 million+ you will take home in that time.

    You said in your opening post you NEED a bigger house make that a priority, to be paid off in 20years.

    11k stamp duty is £420k house 90% LTV you want to be looking at £2kpm on that

    Try to pick one big enough to last you, having to move again will be a big waste of money.

    every £100pm month you can find buys another £20k bit of a house by the time you are 60.
    • mp80
    • By mp80 15th Jul 17, 8:18 PM
    • 178 Posts
    • 32 Thanks
    mp80
    Stamp duty is 7.5k I miscalced it (although I will need to pay 18k up front and then get a rebate due to higher SDLC) - house is 350, has value potential and is 5 beds + has had one of those trendy rear full width glass door extensions, it's in a decent area with excellent schools and close by to family and friends so should be more than enough for a long time to come.
    • getmore4less
    • By getmore4less 15th Jul 17, 11:54 PM
    • 29,488 Posts
    • 17,626 Thanks
    getmore4less
    Why are you thinking of buying before selling?

    Also not understanding why you borrowed to buy a car.
    • mp80
    • By mp80 17th Jul 17, 10:27 AM
    • 178 Posts
    • 32 Thanks
    mp80
    The car was a requirement (new kid) and I didn't have the funds at the time to buy it outright (well I did, but it would have violated my keep 12 months bills back approach)
    • mp80
    • By mp80 17th Jul 17, 10:34 AM
    • 178 Posts
    • 32 Thanks
    mp80
    All irrelevant anyway, it's the reality and I can't go back. As previously stated, the reason to want to buy before selling is to avoid the chain. The house we like has vacant possession. The previous house I sold took almost a year to close, so I'm keen to avoid that scenario again.
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