Wendys Spend Less, Make More Diary

Dinah93

Could you still afford to save while renting? Progression in the police can be pretty quick, and there is usually lots of overtime available that doesn't make a difference to the size mortgage you'd be offered, but obviously you could save loads over 2 or 3 years, and have a huge deposit to whack down then? Rent as small as you can if you do go this route so you'll save more and have a better own house when you do come to buy.

No one has a crystal ball ofc but the majority of economists are still predicting house prices have further to fall.

wendz86

Yeah that is definitely an option. We can definitely save a bit if we rent for cheap enough. As soon as I have paid off my Dad will be able to save even more.

Been looking at flats to buy in a really convenient location as well. We would be able to afford the mortage. I am just a little concerned that it wouldn;t really increase in value at all.

Dinah93

In London I doubt you would loose out on a flat in the long run as you would if you'd bought one up here 3 years ago. Would the interest payment be more or less than the mortage? How long would you plan to stay bearing in mind moving fees are in the region of 5k so you wouldn't want to do it really if it was only slightly cheaper than renting, but you only planned to be there 2 or 3 years.

wendz86

Do you mean the interest on top of the repayment? You wil have to exscuse me, am not the brightest with these things! It would actually cost us less for the mortgage than to rent the same flat. We are just thinking if we are renting we will be paying more plus having to save more as well.

We are only thinking of being there 3/4 years so would have to think about the moving costs like you said. It is true that if we are going to be paying that much, won't be worth it.

Thanks for your help Dinah, you are very knowledgable on these things!

wendz86

I have arranged to view one of the flats tomorrow so we can see how big they are. He said they already have an offer on it, but will be good to see the kind of thing you get for you money anyway. They have quite a lot of flats available in the blocks.

Dinah93

The legal fees, removal costs, surveyors fees etc usually run to around 5k it seems, stamp duty will probably apply on your next property too. The mortgage being lower is good, but don't forget you'll have to pay the maintenance charge (usually the landlord pays this when renting), which has a nasty habit of suddenly trebelling once all the flats in a block have sold, and also anything that goes wrong around the house will be your responsibility too. If there are a lot of flats be wary, why are so many for sale? If a lot of flats have struggling BTL landlords or are repos the maintenance charges might be going unpaid and you'll find it hard to get repairs done. Also, consider what happened to Birdie in her block, and the nightmare she is now going through. I you are happy you can afford these costs, then my devil's advocate role is over

wendz86

Yeah does worry me what happened to Birdie, will have a look at all the things you mentioned!

lilmissmup

Just saw you in bingoport slots and shouted hi but no response!

wendz86

Hehe sorry! Don't pay much attention to the chat. Hope you are ok!

wendz86

Not much news money wise really. I got a 5 pound amazon voucher from BP, so now have 20 quid towards the wii fit. Hopefully should be getting another this week.

I did do a little spending and bought a new bag as mine had for some reason got a green tinge to it. Now have a nice blue bag. Also bought a skirt for ten pounds in Topshop sale, is really nice. I used my ten pounds voucher I had so effectively got the skirt free yay!

We are going to look at a flat today and then I have Take That tonight which I am very excited about.