The ultimate incentive proposed! Buying a house, a wedding, and staying debt free.

clearmydebts

Morning all. Still feel a bit flu-ey and meant to be going to see Tori Amos later on. Hope I can go

Dinah - how about buying a smaller place and then upgrading in a few years. Most 1st time buyers have to do this. Our first mortgage was £650 per month. I wouldn't have dreamed buying somewhere with a mortgage of £1000 per month as I wanted to go on nice hols and have a good life. You can then overpay on your mortgage, have some children and buy your dream house in 5-10 years time, with a sizeable deposit from the sale of your first place.

Tete_en_l'Air

Dinah93 wrote: »

Nope, 1800 is the break even point, where you burn as much as you take in. So no gain, no loss. Anything under the top line on the graph is when you are loosing, anything above is when you are taking on more calories than you are burning therefore you gain weight. So 1800 is the aim if you are happy with your weight and just want to maintain it.

Yeah that's what I meant, maybe didn't explain it v well. Cinny according to FoodFocus my break even is 1800 according to my age, weight, height and job (very sedentary).

Dinah93 wrote: »

I had a fiddle with HSBCs mortgage calculator last night. If NIM and I saved a deposit of £18k, they would loan us a further £152k. Even if we save £30k, they will still only loan us £152k

I don't understand mortgages I don't think! So in the second scenario it would be less money per month, or the same over a shorter term? I agree with CMD here, you're both really young and trying to save the amount you want to in the time you want for the wedding and big house might just be a stretch too far?

Hope you feel better CMD, it's you who's having the baby isn't it? How's the bump?

clearmydebts

Tete_en_l'Air wrote: »

Yeah that's what I meant, maybe didn't explain it v well. Cinny according to FoodFocus my break even is 1800 according to my age, weight, height and job (very sedentary).



I don't understand mortgages I don't think! So in the second scenario it would be less money per month, or the same over a shorter term? I agree with CMD here, you're both really young and trying to save the amount you want to in the time you want for the wedding and big house might just be a stretch too far?

Hope you feel better CMD, it's you who's having the baby isn't it? How's the bump?

Hi Tete,

Yes, it's me thats having the baby! The bump is tiny but I'm sure I'll pop any day soon!

How are you? Did I read somewhere you are going to Bath soon? We went for our anniversary last year. It is such a beautiful city, I loved it and especially loved the thermal spa!

Dinah93

clearmydebts wrote: »

Dinah - how about buying a smaller place and then upgrading in a few years. Most 1st time buyers have to do this. Our first mortgage was £650 per month. I wouldn't have dreamed buying somewhere with a mortgage of £1000 per month as I wanted to go on nice hols and have a good life. You can then overpay on your mortgage, have some children and buy your dream house in 5-10 years time, with a sizeable deposit from the sale of your first place.

If we have to wait 18 months for the wedding, it is likely we would be wanting to start trying for a family within a year as we'll be nearing the end of when I can safely have kids. Given all the costs of moving, solicitors, selling a house etc, it seems daft to us to buy for 2 years max before we need to move again. With a £850 a month mortgage we will still be putting aside £250 a month for holidays, and have £400 per month for spends, as well as setting aside all the money for budgetting for car repairs, petrol etc, so I am very comfortable with that level. The lass next to me has a mortgage of £1600 a month, and they have a combined income of £39k, so a fair bit less than NIM and I - that would be a stretch too far though!

clearmydebts

But what about when you have children? Unless you go back to work straight away you won't have that amount of money coming in? Plus you have the expense of children. I just think you should be careful, as it is a lot of pressure for NIM to support you and potential children on a higher mortgage - all for the sake of bigger house?

Flower08

Dinah93 wrote: »

If we have to wait 18 months for the wedding, it is likely we would be wanting to start trying for a family within a year as we'll be nearing the end of when I can safely have kids. Given all the costs of moving, solicitors, selling a house etc, it seems daft to us to buy for 2 years max before we need to move again. With a £850 a month mortgage we will still be putting aside £250 a month for holidays, and have £400 per month for spends, as well as setting aside all the money for budgetting for car repairs, petrol etc, so I am very comfortable with that level. The lass next to me has a mortgage of £1600 a month, and they have a combined income of £39k, so a fair bit less than NIM and I - that would be a stretch too far though!

I think that sounds very sensible. To be honest i know FTBs are expected to buy smaller houses, but its needs to accomadate your needs - and if children are on the agenda you need room for them in the house!!
We're quite lucky in that the area we live has quite low house prices (well in comparison to some of the places i have lived before!!) so when we start saving for a deposit we would be able to get the nice 3 bedroom type place we would be comfortable living in for years and would be ok if had kids aswell.

Dinah93

We're not exactly looking at mansions! We're talking the difference between a 3 bed semi in the middle of town, or one in the country where we want to be. My employer gives me 90% pay for 9 months after giving birth and the option of another 3 months unpaid, which would be fine. Once NIM has some more experience he should be on £30-£35k realistically looking at jobs in his sector, which is a collossal pay increase. We're planning on me childminding if we don't get anywhere with the desserts business or my painting, but there are always options.

NIM would not buy a flat, and he would not be happy his family living in a dodgy area so neither of those are possible compromises, we'd rather rent or stay with my parents until we have a larger deposit. He's a very hard worker and determined, and there are plenty of options available to us depending on where life takes us.

I don't consider £800 a lot of money to be honest, it's under 1/3 of our after tax pay, and given the average FTBs mortgage is 48.7%, I think we're being fairly realistic in what we are looking for.

clearmydebts

Flower08 wrote: »

I think that sounds very sensible. To be honest i know FTBs are expected to buy smaller houses, but its needs to accomadate your needs - and if children are on the agenda you need room for them in the house!!
We're quite lucky in that the area we live has quite low house prices (well in comparison to some of the places i have lived before!!) so when we start saving for a deposit we would be able to get the nice 3 bedroom type place we would be comfortable living in for years and would be ok if had kids aswell.

I agree it is sensible as long as the mortgage is potentially sustainable on one wage. My sister & her fiancee bought their forever house as first time buyers so I am not against the idea but when children and maternity leave comes into the frame it does up the expenses quite a lot, and then if the woman wants to stay at home, it also means there is just one wage coming in.

All things to think about

Flower08

clearmydebts wrote: »

I agree it is sensible as long as the mortgage is potentially sustainable on one wage. My sister & her fiancee bought their forever house as first time buyers so I am not against the idea but when children and maternity leave comes into the frame it does up the expenses quite a lot, and then if the woman wants to stay at home, it also means there is just one wage coming in.

All things to think about

I would never have to think about things like that,because by that time i would have won the jackpot on the lottery :rotfl::rotfl:





Well i can dream!

Dinah93

I couldn't stay at home until NIM was promoted and qualified. We couldn't buy anywhere at all if we were budgetting to live off his wage, we could if it was mine. I accept until he is qualified I can't stay home and look after any kids, but we're running out of time and I would rather make that sacrifice than not be able to have little ones at all.