Millionaire Challenge

Kayalana99

spock007 wrote: »

All: thank you!!
I really appreciate all the help and advice.
Tricky one for me - my partner is a lot older and currently has a job - the dual income means we're doing ok, and her mortgage is paid off on the flat. We could stay here, buy a little house and put our money to work. Or while we're still both able, I can move just about anywhere in the world for work and we've always toyed with the idea of moving to Germany/Austria BUT this means we'd have to start paying rent, she'd have no income... basically we'd be sacrificing finances for quality of life (well, for a bit of adventure)! I just can't decide which path to take as you only live once, but I'm so money-minded..

She would have a rented flat (so rental income every month) or she would have lots of money sitting in the bank to buy another house no?

Can't you move with it working both ways? Could you live off one wage + rental income from the UK until she found a job?

Kayalana99

*Sigh*

I've seen a gap in the market...but after hours and hours of googling I can't find ONE thing I would be able to stock at a decent price....got the perfect name for the business and I can see it all working but I just can't find suppliers.....and the only one I just found has a min order of 2000 for the same thing!! (So when I would like 20 lines to start they want me to spend £8000ish on one line!!!)

I think it's sort thing you need a lot of £££ to go into unfortunately..

Broken_Biscuits

hehe just found out im getting a normal sized pay on 25th. Not bad considering i started on 2nd feb. Thought it might be just for the days i worked. Plus found 2p in my new desk draws from the last employee.

this time next year rodders...

Buffythedebtslayer

Evening all,


haven't posted since Christmas!


not much is going on. have decided to pay off the remaining credit card debt with my current savings and focus more fully on saving and earning more. the debt was really bugging me and I wanted it GONE. So come next pay day it will be gone.


I am de-cluttering (as normal) and trying to get down to the bare bones of my expenses so I can get a clear run at saving. I had hoped to be sorted by the end of Jan but am being realistic and saying the end of March.


Extra money making is only coming from selling at the moment. and not a lot of that!


Xx

Broken_Biscuits

financial year end approaching...
what's everyones opinion on overpayment of mortgages?

3.59% mortgage. I know that popping any potential overpayment into an investment is likely to return more than the mortgage rate.
. But i still like to over pay a little each year.

mathematically it makes no sense. Piece of mind i guess. Its nice to pay down your liabilities.

some time in the next few weeks I'll pay off 3k. Will shave 10 years off my 25 year term if i keep overpaying 3k a year.

should hit my 50% saving target again this month and so bunged a further £320 in the ratesetter account now rather than waiting til payday... passive income is just shy of £300 a month now... Everything is ticking along nicely.

Listerbelle

We overpay every month, by at least 20% more than the minimum.

There is a "snowball" calculator somewhere on MSE, that shows you the impact of overpaying. You plug in your numbers. For us, every extra dollar reduces our mortgage by $2.25.

Kayalana99

Broken_Biscuits wrote: »

financial year end approaching...
what's everyones opinion on overpayment of mortgages?

3.59% mortgage. I know that popping any potential overpayment into an investment is likely to return more than the mortgage rate.
. But i still like to over pay a little each year.

mathematically it makes no sense. Piece of mind i guess. Its nice to pay down your liabilities.

some time in the next few weeks I'll pay off 3k. Will shave 10 years off my 25 year term if i keep overpaying 3k a year.

should hit my 50% saving target again this month and so bunged a further £320 in the ratesetter account now rather than waiting til payday... passive income is just shy of £300 a month now... Everything is ticking along nicely.

My main aim ATM (slow one) is to get the mortgage down to 75% of the house worth, then I will start cash savings towards a deposit on my next...why? Because you need 25% eq for a B2L (so I was told last year anyway!!) then we just need the dep for our next house...perhaps when you think of % wise it's not worth it but once the house is rented it should be.

It's a shame that we can't do this sooner as circumstances may force us to move...I will have to do a proper update soon.

lessonlearned

interesting question Biscuits.

I guess it all depends on how you view mortgages. Some people see them as a millstone round their necks and can't wait to be shot of them. Some people like to borrow to the hilt because they use mortgages as leverage.

Robert Kioski calls this investing with Other People's Money. In this case using the banks money to enable you to buy a better house than you might otherwise be able to buy if you were paying cash.

I think one way of looking at it is if you can increase your equity by paying down some of your mortgage then you have a measure of protection when interest rates move upwards. It gives you stability and security - not a bad thing in these volatile times.

Having said that there are some pretty good fixed rate deals around at the moment, so that is another way of ensuring you can stay in control of your mortgage payments.

The other thing to remember is the greater. The equity the better the mortgage deal. I took this on board when I gifted Money to my boys for their houses.

DS1 has 20 per cent equity, and DS2 has 25. Per cent. DS1 is the higher earner with the the more expensive house, DS2 only earns slightly above min wage so he really needed 25 to get him started

It's only a small terraced house but He's glad to be "on the ladder" and he currently pays less than half on his mortgage than he would be paying in rent on the same house.

I think his 25 per cent did actually come out lower than DS1s 20 because of the price differential in the two houses.

With both of them they got good deals and attractive interest rates because they had at least 20 per cent deposit so had a decent amount of equity from the start.

I am currently very undecided about what to do re mortgages for myself.

I don't know whether to go for a couple of cheaper houses, one for me to do up, live in and then perhaps sell in a couple of years and the second property as a Buy to let to give me some extra income, or whether to plough all my money into one really nice house and put down roots.

The problem with that is I might be leaving myself vulnerable because future inflation could erode the purchasing power of my pensions a Nd I could have issues with ongoing maintenance etc. in years to come.

I suppose it depends how long I live.....;)

Ive got some viewings booked this week so I'll just wait and see. I need to mull things over for a while.

It's a shame because I just missed out on a really nice swanky penthouse smack bang in the city centre, riverside views, great location. It was snapped up within 3 days whilst I dithered.

I won't make that mistake again.....

That apt would have been perfect, either as a smart pad for me and then later as a rent machine or even for a more permanent home if I really loved it.

I do have several options and I'm just weighing them up.

Any observations or input would be much appreciated.

For example

If I take out the maximum in mortgages I could probably get 2 Btls on mortgage and have enough to buy a small house for me outright.

Or - if I have two BTls then the income would cover my mortgage payments and I could buy a posher house for myself. :rotfl:

I can afford a small mortgage on my pension income even without the BTL income so I wouldn't be panicking at the odd void period because the net income on the BTL/BTLs would just be a nice bit of extra passive income.

Or I could throw the lot on red......only kidding.

I need to make a decision this year though, because prices seem to be on the move again and my money is doing nothing in the bank, despite me moving it into the highest paying accounts I can find.

Broken_Biscuits

my 3k (equivalent of 250 a month) would be about a 40% overpayment.
i own about 30% of my home.

i think because im over paying and saving/investing im ok with it. Like i said... Its nice to pay down your liabilities. if rates stay low and i have to make a decision on either or saving or over payments then i would pick saving. If rates go back up i can overpay with the investment profit.

seeing some of the people who were made redundant with me really panicking due to poor financial planning... Well... It really struck home even more so about getting my own affairs in order. Bring down liabilities as low as possible and keep topping up the savings!

lessonlearned

I think it's a great idea to minimise liabilities where possible.

It's better to work from a position of strength and security than overreach yourself. I think you are definitely on the right track.

It has taken me several years to mend my finances. I might have been quicker if I had taken bigger risks but I have been more comfortable doing it at a sedate pace., gradually becoming more secure before I took the next step.

This way whatever hapopens to me I will have a small bolt hole and both boys now have a good foothold for the future.

I shall be interested to watch the programme about the Tiny House Movement. It's on TV on Wednesday. I think this is the way forward for me. I only need a small house with a postage stamp for a garden. As long as I have some outside space a small sunny courtyard will do.

I have been reading about the tiny house thing a while now and I have already start Decluttering and jettisoning all my junk in readiness.

Many years ago, when I was young free and single, I bought myself a tiny one bedroomed cottage. I loved it so I'm thinking along the same lines for my last "forever house"l

Small but perfectly formed:rotfl: