£14310 off mortgage 2010 lets make 2011 better

sarahevie

viola_brandywine wrote: »

I notice that you rent a house out. Me and DH are thinking about doing this once we are MF but are worried about the stress that comes with it. Do you find that it needs a lot of attention?

Have a nice weekend

Thanks for taking the time to post viola, I think that rented houses are great. Mine has allowed me to be a SAHM, it's a great long term investment/pension pot.

However, the main stresses for us are non paying tenants. Our two mortgages are 1550 a month our income 1850 basic so if we have no tenants/they aren't paying we only have 300 a month for a family of four for everything other than mortgage. This isn't viable long term.

In the four years I've owned mine it has cost 10,000 in maintenance, new bathroom, boiler, re decorating. Mine is a student let which is more labour intensive, new tenants every year, re decoration every year. New carpets/furniture every three years etc.

However, my repayment mortgage is 699 a month, my rent is 1200. I'm taxed on everything above 300 a month as this is the interest on the loan which is tax deductable. Despite this it is still healthy cash flow every month. Plus the mortgage balance is going down so one day I will own the house and not have spent any of my own money on it.

If I had the deposit, dared take the risk on another, knowing that without tenants we couldn't afford the mortgage I would do it. I love being a landlord. we won't get another until we are mortgage free, or a lot closer to it.

viola_brandywine

Thanks for the reply sarahevie, it is very helpful. I love that it helps you as a SAHM as this is something that I would love to have the option of being once I have children. The maintenance is what I am worried about really, I think initially the mortgage would be almost as much as the rent so any big problems would cost quite a bit to repair rather than being paid for from rent.

sarahevie

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 650
Partners monthly income after tax....... 1097
Benefits................................ 220
Other income............................ 1126
Total monthly income.................... 3093

Monthly Expense Details
Mortgage................................ 852
Secured/HP loan repayments.............. 699
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 32
Gas..................................... 20
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 12.85
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 50
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 120
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2668.85


Assets
Cash.................................... 5000
House value (Gross)..................... 360000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 370000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(852)......5.99
Secured Debt.................. 140000...(699)......2.25
Total secured & HP debts...... 261000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,093
Expenses (including HP & secured debts). 2,668.85
Available for debt repayments........... 424.15
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 424.15

Personal Balance Sheet Summary
Total assets (things you own)........... 370,000
Total HP & Secured debt................. -261,000
Total Unsecured debt.................... -0
Net Assets.............................. 109,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

As I got paid for the first time today - I decided to have a go at an updated SOA (our tax credits are now completely different). Have also included the rent from the 'rental house'.

This still stays in a separate account.

Amount left over 400 a month is pretty accurate actually.

cha97michelle

Is the other income the rent sarahevie? Just being nosey as your DH and your salaries combined are what we have pretty much from DHs income, and i always like to see how others do also on a low budget.

Your car costs seem low to me but then we have the 2 cars. DH put £170 into his last weekend to do the london trip. Thankfully that is claimable as it is a joke really how expensive it is to do it.

sarahevie

Yeah the other income is the rent.

The secured loan is the other mortgage as well. Wanted to put it separate, as they are in different accounts. Thought that I would lump them together, to make it clearer.

Currently not getting much in tax credits, but I'm happy with this as I don't want an overpayment. Hopefully sort it at the end of the year when we have 'true' earnings from my new job, plus proper accounts from our 'rental' house.

Our outgoings are very scary, but our net assets are better than I thought.

sarahevie

cha97michelle wrote: »

Is the other income the rent sarahevie? Just being nosey as your DH and your salaries combined are what we have pretty much from DHs income, and i always like to see how others do also on a low budget.

Our mortgages are such a high percentage of our income. Income approx 3000, but then normal mortgage payments are 1550 - so do feel up against it. I'm yet to find anyone with as low an income as ours but with large repayments.

It does make me feel like its madness but it does work for us. I'd consider selling the other house if we had to.

We rarely use the car and it is still less than two so still under warranty for most things. OH works 5 min walk from home, I only use car when I really have to. A tank lasts me a month.

I think having only one car saves a fortune.

My main aim is to hammer the mortgage whilst girlies are at primary school, and are less demanding financially.

CathT

sarahevie wrote: »

Our mortgages are such a high percentage of our income. Income approx 3000, but then normal mortgage payments are 1550 - so do feel up against it. I'm yet to find anyone with as low an income as ours but with large repayments.

It does make me feel like its madness but it does work for us. I'd consider selling the other house if we had to.

We rarely use the car and it is still less than two so still under warranty for most things. OH works 5 min walk from home, I only use car when I really have to. A tank lasts me a month.

I think having only one car saves a fortune.

My main aim is to hammer the mortgage whilst girlies are at primary school, and are less demanding financially.

Our joint income is around £2150 and mortgage is £690 so ours is a fairly large proportion but manageable and I aim to pay out £1000 a month including OP's as our mortgage would have been this if we had moved.

I'm similar to you in the I want to get the mortgage right down whilst children are young. I would like to be in the position to send ours to private school but we will see

Great news about the garden too, i guess it will definitely be completed in time for DD's bday? (am sure that was the plan?)

sarahevie

I'm really upset about the garden, it looks a mess. They have only put a new 4ft fence around the garden, this was the size of the previous fence, the whole reason for having the garden done was to have a higher fence put on to make it more private, safer for the kids.

Now it just looks shoddy. They have left half the existing fence in place, and matched it up at the end where the garden has been extended. The fences are different colours and styles although both 4ft.

They were supposed to be putting a new paved area in one corner, but they have just put three flagstones and some gravel which the kids are already kicking around. I'd never have agreed to gravel with DD1, it won't be there for long.

I'm absolutely gutted, it started so promisingly - now I don't know what to do. OH not getting involved, saying just tell them I'm not happy and he doesn't mind the 4ft fence.

However, all we have gained is 6ft extra length in our garden for 2500. Hardly seems worth it

Iris_Blue

Did you get a written quote and was it for a whole new fence? I think they will be different styles if it isn't all replaced at once as different fence companies use different suppliers. You're going have to phone up SE and get them back or it 'll just keep winding you up. Get the guy who gave you a quote to come back out and discuss it with you.

I don't think 4ft is high enough either but that's because I don't want to stand in my garden and see my neighbours.

3 flagstones hardly qualifies to be classed as a paved area either.

I hope you sort it out.

sarahevie

Well it is now finished, they have left the original fence in, but I think that when we have painted the new fence to match it won't be too noticeable.

The 4ft fence is on top of a metre high wall, so it's not horrendous.

It got very very nasty today, when I complained - so we just paid for the job. Spoke to trading standards who basically advised us to pay them - as the written quote was a bit vague and they thought that as it said new fence around the garden and the existing fence is just one half of an enclosed pathway it was a bit awkward. Going to get a quote to change it with another company should only be 100 quid or so.

Poor DD2 has been saying nasty man, no home, all day after our debacle this morning. Had to camp out in the children's centre.

OH not very supportive, just said it's not really what we wanted but they have spent 7 days on it, so if it went to a small claims could go either way. Now they have put the rest of the fence up it is nice and enclosed and OH prefers the 4ft fence as our garden is south facing, so still lets enough sun in. We are on a hill so no issues with neighbours as they are beneath us or attached and at one side we have a new 6ft fence between our garden and the garage which disguises our garage. The other side has the huge conifers.

He knocked 200 quid off to compensate the 6ft of original fence used on the pathway, so have paid 2300 in total. Have gained an extra 10ft of garden, a metre high garden wall with 4ft fence on top to the rear as a retaining wall. A fence up against the garage to disguise it and a new garden gate at the end.

Not using them for the front though:rotfl: