Help!?.. Salary reduced with no warning?!

danlovedough

2.5 YEARS LATER -
After my initial post I started to work hard at saving money, and earning more, and have been fortunate enough to move on to a new role and exit the business this month, reducing my business equity, leaving me in a position where I can afford to move into a new house with my family and have an attractive job to start with opportunity to earn significant bonuses, and managed to hold on to equity of 2.5% in the business I started which has been valued this week at £3 Million. Thought it would be good to drop back into this thread and see if anyone has any advice they can offer on my housing situation.

The goal has always been to move to a new property and the houses we are interested in cost in the region of £320k-£350k.

I have some cash and the opportunity to put a significant deposit into a new property and sell my current house, or to pay down 30% of my current mortgage and switch to a buy to let arrangement renting the house out and putting a 30% deposit on a new property and having a mortgage.

Would be interested to hear thoughts on if it would be better to do a buy to let and hold on to the property I currently live in as an asset which can be paid off by tenants over time, or to sell this house and have a bigger deposit to put into a new house?

See below updated SOA. Any thoughts or comments very much appreciated :-)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 4000
Partners monthly income after tax....... 0
Benefits................................ 100
Other income............................ 100
Total monthly income.................... 4200

Monthly Expense Details
Mortgage................................ 625
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 80
Gas..................................... 60
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 10
Mobile phone............................ 50
TV Licence.............................. 12.37
Satellite/Cable TV...................... 85
Internet Services....................... 25
Groceries etc. ......................... 600
Clothing................................ 100
Petrol/diesel........................... 150
Road tax................................ 30
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 75
Haircuts................................ 20
Entertainment........................... 200
Holiday................................. 400
Emergency fund.......................... 50
Total monthly expenses.................. 3097.37


Assets
Cash.................................... 170000
House value (Gross)..................... 145000
Shares and bonds........................ 75000
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 395000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 145000...(625)......4.5
Total secured & HP debts...... 145000....-.........-

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


Monthly Budget Summary
Total monthly income.................... 4,200
Expenses (including HP & secured debts). 3,097.37
Available for debt repayments........... 1,102.63
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,102.63

Personal Balance Sheet Summary
Total assets (things you own)........... 395,000
Total HP & Secured debt................. -145,000
Total Unsecured debt.................... -0
Net Assets.............................. 250,000

CKhalvashi

Well done