Getting on the Ladder

lisyloo

even if I do it to the penny from the last few bank statements I always seem to spend more than I think!

This is EXACTLY why you need to write it down, because it's the same for everyone. We just aren't aware of how much we are spending.
This is the FIRST thing you are told to do if you are in debt.

Be a little bit careful working from bank statements.
It may not include everything on a monthly basis.
For example water bills are 6 monthly.
House and car insurance can be annual.
Council tax doesn't get paid in Feb and March (where I live anyway).

I think my list is farily comprehensive (and long) but I don't have any kids, pets, don't drink or smoke and don't have any expensive hobbies, so there could be things missing from it.
I'll have a look on my computer when I get home, to check whether I've left off anything significant.

heather123_2

I will spend some time writing everything down - including annual things and put it into the budget planner thingy on this site.

I guess I then need to actually write down what everything on top of that would cost when we get somewhere and work out how much we could each afford of that to put in...

Really useful list, thanks - now, if you could just work out the maths for me...

!!

Heather

zar

You could use the MSE budget planner as a guide to start you off in working out what you can afford.

I don't think you should get rid of the horse like some people on here have said, it sounds like you really love it. If you gave it up just so you could move in with your partner then you might end up resenting it and you wouldn't be happy. It sounds like you're hoping to be earning more in a year or so, so if I were you I'd forget about buying til then and work out whether staying with your parents or renting would be best in the meantime. Why not keep an eye out for properties to rent with a paddock or stable, you never know what might turn up cos the owner has to go abroad for a year for example...

EagerLearner

Put it this way - my OH and I are on 20K each also and we can't even afford a 1 bed flat in the South that would leave us actually having a life afterwards... we tried and failed a few months ago. I'd suggest you aither increase your deposit considerably by saving or choose the new house over the horse. Plus if you could go for less bedrooms that would also help...

Good luck with it all anyway - don't pull your hair out yet or else you'll have nothing left for when you actually start the house buying process

lisyloo

Another idea I've just had is renting the spare room (in the proposed 3 bed house).
The government do a scheme whereby income up to around £4K per year (don't remeber exact figure) is tax free.
Would also help with bills as they would be shared.

However I must add that I have reservations about encouraging people to invest in property as I believe there are risks and it may not be the best time (as far as the market goes).

lisyloo

I have just checked my own list at home.
I got most of it, but left off

TV licence
Sky TV
Haircuts

It always amazes me how long the list is and that is without kids, pets, booze, fags or hobbies.

[Deleted User]

Heather, I have to agree with zar. I know some people recommended scrimping and saving for a few years to buy a house but is that any sort of life to live? You'd probably go nuts. Personally I would keep the horse and save up a bigger deposit so that the mortgage costs will be slightly lower and you can afford the house and keep your horse.

I also agree with lisyloo in that you need to work out exactly how much you can afford and look at the figures of what you would have to pay if you did buy something. This includes EVERYTHING and there may be things you don't even think of. BUT I would also recommend thinking about the costs a few years down the line and anticipate the worst for interest rates. I was recently looking at buying and was using an interest rate of 9% three years from now, I was only happy that i could afford something if I would still be able to afford it three years from now when any mortgage's fixed rate would have finished. Why buy a house, scrimp and save only to have to sell in a few years time when you may not be able to afford the mortgage if interest rates do go up?

lisyloo

That's another interesting point to bring up.
Interest rates do look like they may rise, so you either have to factor this in or go for a fixed rate.
You will pay a premium for the security of a fixed rate, so either way you have to cater for the extra expense.

Sorry that we seem to be bringing bad news, but it's better you know these things up front before making a big decision.

Currently gas/electricity and petrol prices are rising way above inflation as council tax (but not as bad) and interest rates may rise, so stretching yourslef to the absolute limit is not a good plan as that means you'll either have a really miserable time scrimping or get into a spiral of debt.

Careful_girl

Hi Heather. They are all talking sense, sadly. I am also a horse owner but i bought her after I had got on the old property ladder. I would be able to supply a list of outgoings for my horse as i have to budget very carefully. I would not suggest you sell your horse. However you may have to have a smaller house. every time i move it seems to cost me about £25,000. The houses may be big now but there is nothing to see for the money. It eats up the equity. So if you are buying, buy the best you can afford, improve it, get a lodger, and keep doing the cheap DIY not as I considered a few months ago £140 a week. They cleaned your tack daily though!
Good luck,
CG.:j

devils_advocate

At the present moment, you also have to consider whether you're getting on the ladder or getting on the snake!