Some advice please!

zcrat41

Hi, I'm after a bit of advice. I'm looking to buy a property and have 2 in mind. One is quite a bit more expensive than the other. I've done a 'forecast' budget based on what I think my expenses would be. The thing is I don't know how realistic they are as I've always house shared/split bills etc. So any comments on the following would be gratefully received;

Council Tax £100
Phone and Internet £20
TV licence £13
Gas/Electric £120
Water £30
Insurance (all) £35
Food £200
Cleaning/maintenance £40

(Both houses are small 1/2 bed cottages and it'll just be me living there). Basically I know what i need to live on socially/holidays etc and if I can get more of an idea of fixed costs I'll know how far I can stretch the mortgage!

Thanks in advance!

Pee

Water can vary dramatically, depending on the area you are in. Ask to see the sellers last water bills. If it is metered, then yours may well be less or more depending on who was living there, but if it is rated, you will see the difference, if any.

ILW

zcrat41 wrote: »

Hi, I'm after a bit of advice. I'm looking to buy a property and have 2 in mind. One is quite a bit more expensive than the other. I've done a 'forecast' budget based on what I think my expenses would be. The thing is I don't know how realistic they are as I've always house shared/split bills etc. So any comments on the following would be gratefully received;

Council Tax £100
Phone and Internet £20
TV licence £13
Gas/Electric £120
Water £30
Insurance (all) £35
Food £200
Cleaning/maintenance £40

(Both houses are small 1/2 bed cottages and it'll just be me living there). Basically I know what i need to live on socially/holidays etc and if I can get more of an idea of fixed costs I'll know how far I can stretch the mortgage!

Thanks in advance!

You need to build into your calculations the fact that mortgage rates could go up substantially over the next few years. If you are on a variable you need to allow probably double the current amount.

zcrat41

Thanks, I've kept that in mind - I'm going for a 5 year fixed rate that has a contingency built into my budget whichever one I go for.

ncooper1974

Gas/electric seems a bit high, even with the hike in prices we've had.
we're paying less than that and its a 3 bed semi with 2 adults living there

pingu2209

I would say that the phone and broadband looks low.

Jowo_2

I agree with the previous posters - you've got most of the basics figured out in terms of minimum house running costs.

But you really need to be specific about your social/leisure costs. When I once monitored my budget, I was surprised how much went on virtually what appeared to be minor cheap and occasional things like stationery, gifts, haircuts, clothes, newspapers and subscriptions and the like.

What about travel? That doesn't feature anywhere.

And does your contingency cover the steep initial move in costs that come from new furniture, decorating, garden equipment, etc, or are you a freecycle buff?

mlz1413

zcrat41 wrote: »

.
Council Tax £100 £90 with SPD £120 without
Phone and Internet £20 mobile £10pm talktalk broadband £17pm
TV licence £13 ditto
Gas/Electric £120 £80 but depends on type of heating and useage
Water £30 ditto
Insurance (all) £35 £50 inc's life, home, buildings
Food £200 you should know this already
Cleaning/maintenance £40
QUOTE]

I have added my costs for a well insulated 3 bed terrace house, you haven't mentioned a pension payment or any travel costs and do you have any memberships, credit cards to pay, pets to feed?

clutton_2

if you ask for a water meter as a single person you can reduce your bill by two thirds if you use your water with care

zcrat41

Thank you for all your comments. It sounds like I'm not too far off the mark.
MLZ - no pets, company car so no cost there (well, except for the tax man!), no CC's, pension taken direct out of salary and no memberships at the moment.

Jowo - good advice. I moved home about 8 months ago and since then have been saving the equivalent of a mortgage + running costs, It was a bit of a shock to my system when I realised how much I was spending on cr**p. Its been great to be able to 'practice' having a mortgage!

michaelboyd2

When I switched to a water meter my bills went from £400 a year to less than £200. I wish I had found out about ir earlier. I would have saved my self £600 in the previous 3 yrs.