30 and at parents

want2bmortgage3

i seem to be getting left behind, most of my mates are either married/in long term relationships/have young kids... even my younger sister is getting married and living with husband to be.

i have worked nearly all the time i left school at 18 and bought a property at 20 (£122k) which i sold in '06 and bought a similar property for £140k. i have rented these out the majority of the time i've owned them. however the mortgage is still just over £100k and my job pays £18k and i am stuck at my parents on the edge of town.

i tried living in my flat for a while but it was costing me nearly all my income with the bills and stuff and i had nothing left. also its not in the sort of location i'd like, have to rely on buses as so far out and no train nearby. i also lived as a lodger at a friends but didn't enjoy that due to small room and the lifestyle of my mate i was living with.

admittedly i have wasted some money in the last year due to gambling, which i put a stop to, and have now finally cleared my credit card debt. however i still have just over £1k debt on overdrafts.

i nearly sold the flat a year ago but the buyer pulled out after having a full survey which found problems with the lease (cost £15k to renew) and the roof (not a lot i can do as this is the 1st floors responsibility and he isn't interested). the survey estimate the value of the flat as the same as i paid for it several years ago so i havent gained from property prices going up!

so what can i do? i would like to have my own place, and live nearer town so its easier to go out and do things. i am sick of struggling on for nothing, in 10 years i dont seem to have got anywhere. my job hasnt got much of a future either! arghh!!

sp1987

If the lease is causing problems you either need to stump up to renew it so it can sell, drop the price to sell it to someone who does not care/will sort it themselves or stay put.

You don't want to live in the flat (bills too much), you can't live with other people, and you don't want to live with your parents?

Your own place will have the same bills as your flat, no?

An £18k salary is low to be running a household alone, especially with other debts. It is totally possible, but it won't give you the quality of life you get at your parents, I would imagine.

Can you try another houseshare with people whose habits do not annoy you? That seems affordable and doable in your current circumstances. Or could you get a better paying job/up your income so you can afford to live alone?

ruggedtoast

The flat is a red herring really. It sounds like your rental income is covering your costs and you wont benefit much by selling so you may as well leave it as it is for the timebeing.

I remember people saying that the only thing they have ever made any money investing in is property, but from my experience the only thing I have made money investing in is myself.

I came back tp the UK from travelling after having bummed around for most of my 20s and on my 30th birthday I found myself temping for not much more than minimum wage. I pulled out every stop imagineable; I moved to London, I racked my brains for careers I could do, I spent hours and hours on my cv, every weekend and a lot of evenings applying for jobs and writing to agencies. I went to countless interviews which I never seemed to quite make, I did LearnDirect courses, I did marketing courses at a university, I taught myself html, I got a copy of Dreamweaver and taught myself that, I did websites for people, I taught myself Photoshop and Sage; I went to every CPD course I could get on and I volunteered with a charity as a mentor for refugees to help my CV.

I got very stressed, I drank too much and it was a tough couple of years, but finally I got half a break and in the end I got there.

I'm no worse off now than my friends who didnt muck around in their 20s, and in many cases better off. If you put the graft in you'll get there but you will have to radically change what you've been doing and never take no for an answer.

want2bmortgage3

Thanks for the really good responses. The flat does cover its costs and I even use a seperate bank account for rent-in, mortgage-out. There is no way I can pay for a new lease so if I sold I'd have to take the price cut. The only thing I'd gain selling it is I'd be making the equity (best part of 40k available). What I'd do with that then I am unsure but I could certainly rent somewhere and have my own place which in a way is moving forward.

Another thing with the property I forgot to mention is I am currently on a standard variable rate and I cannot get a new fixed rate because I have debts. These debts are money I loaned to friends via my credit cards but are being paid back now on fixed terms. However the debts are in my name and the mortgage broker could not get me a mortgage due to these. Therefore I am not tied in to any mortgage deal now, but the rate could go up, fingers crossed it wont. As I said earlier, I no longer have any credit card debt of my own, it is only this money two friends are paying me back.

I can live with other people, the person I did live with often had an 'ex' girlfriend round with their kids a lot more often than he told me originally, so it was very noisy and I wasnt comfortable living with that. I'd be happy to share with a friend (dont know anyone atm) but rather not be a lodger again...

Ruggedtoast your story is fantastic and well done. This is a question I've been trying to answer, a property might be a good investment long term but it really is long term. Isnt it best to focus on improving your own skills and applying them then worrying about property after that???

HiYield

I can understand your desire to live in your own place. However, it sounds like the property is ticking over on its own so I would echo ruggedtoast - this is a nice little investment so leave it be. The pay-off will be when the mortgage is paid off one-day and you receive an income from it.

If you really do want to move in then make sure your tenants really do live on your terms and are low maintenance. i.e. quiet, no kids, good income etc. If this is difficult and a source of stress, then leave the property rented out as it is.

I would also agree with rugged toast. I have recently decided to move my career forward and only on deciding that did I realise my CV was lacking and I had been with my employer for too long. I spent a bit of money on a course which I was interested in and it has now resulted in a job which is taking me in a new direction and with more money. On this basis I have a new attitude to money and my career. Investing in yourself (time and money) will lead to more money and a better long term position, so it is really worth it.

Credit card and o/d debts, get them paid off and never build long term debts on these again. I too had debts on CCs but paid these off (eventually) with the help of renting a room in my flat. I do have CCs now but just for monthly purchases, paid off 100% every month.

Re. interest rates, in my opinion these are not likely to go up in the future (ext 3 years) and if they do, not by much.

If I were you i'd:
1) try to think of a way to increase your salary e.g. gain a promotion by asking for one, by moving employer or by doing something to improve your prospects of one e.g longer hours, studying in your spare time.
2) save as much as possible while you're at your parents and have the opportunity to pay low rent (I presume)
3) set a 1 year, 3 year and 5 year plan for your career, finances and personal life.
4) put the plan into action - once a plan is made it's not usually hard to implement.

Good luck!

GDB2222

Once you start paying the capital down on a mortgage, it sort of snowballs. Less capital means less interest, so your repayments repay more of the capital and so on. Living at home, I'm not sure what your minimum expenditure is, but maybe £100 a week? So, if I were in your position, I would be saving like mad to get rid of the mortgage on the flat.

Also, £18k does not sound like a terrific wage at age 30, but maybe it's a great job, or that's all that's available locally?

I'd make a 3 year plan to continue to live at home so that you can:
a) Reduce the mortgage, and
b) Improve you job prospects.

want2bmortgage3

once again thanks for the advice. on a money saving perspective i am better off staying put and over paying the mortgage. its balance this against the desire to move out and have my own place in the location i want.

so i guess i have these options?:
1. leave the flat as an investment and just make sure the mortgage is being paid by the rent. do what i like with my income (take home about £1200 / month) which means i could move out and rent a flat/studio but not be able to over pay the mortgage.
2. mse option. stay at home as things are and over pay like hell but not be able to move out.
3. sell the flat (which is 2 bed) and buy something similar price or cheaper but where i would want to live, but then id be giving up the rental income and having to pay the morgage myself.

lol nothings ever straightforward is it!

RAS

Are you decaling the rent to HMRC and have you got that up to date?

Sounds liek actually you might be better off paying down the credit card debts even if your friends have to keep paying you back for money you no longer "owe">

VfM4meplse

want2bmortgage3 wrote: »

i seem to be getting left behind, most of my mates are either married/in long term relationships/have young kids... even my younger sister is getting married and living with husband to be.

Let me provide you with some context. I have a friend that is nearly 50 yo, owns properties on rent, and still lives with their parents, no partner nor children in contrast to their siblings, who are are all happily married with families of their own. My friend is earning a very high salary, doesn't get any pleasure out of money but is constantly miserable about their job and having to do a bit of housework.

Where's the joy in that? I would rather live before I die. If this is you in 20 years time (which I seriously doubt) then you will have cause for concern.

Running_Horse

Get a life plan, with aims and goals. Could be relationships, career, education, training, or even hobbies. A guy at work is 40 and has lived with family most of his adult life despite earning good money. He will most likely still be doing so at 50. He is also an angry miserable old git.

GDB2222

want2bmortgage3 wrote: »

once again thanks for the advice. on a money saving perspective i am better off staying put and over paying the mortgage. its balance this against the desire to move out and have my own place in the location i want.

so i guess i have these options?:
1. leave the flat as an investment and just make sure the mortgage is being paid by the rent. do what i like with my income (take home about £1200 / month) which means i could move out and rent a flat/studio but not be able to over pay the mortgage.
2. mse option. stay at home as things are and over pay like hell but not be able to move out.
3. sell the flat (which is 2 bed) and buy something similar price or cheaper but where i would want to live, but then id be giving up the rental income and having to pay the morgage myself.

lol nothings ever straightforward is it!

Option 2 is the only one of those that will improve your position financially.

I didn't move away from home until I wanted to set up home with my girlfriend. You could add getting a g/f to your 3 year plan, and ofc "two can live as cheaply as one", and hopefully she'll be earning.