It's kind of fun to do the impossible

Sholly

October payday has been and gone. Current deficit £5,600.
It was £5,603.10 after I'd paid the credit card minimums and the rest into my savings, but that £3.10 was bothering me 😂

Sholly

I'm starting to think about post-debt.

I've been paying just over £1,860 to my debt for a while now which has been sustainable and we've still been able to enjoy days out, meals out etc. When I've paid off my debt, I will keep 6 months worth of bills in my account, and have our safari holiday, but I'm totally undecided after that. My options are: save, buy a BTL, buy a holiday let apartment in (probably) Spain, buy a UK holiday let, or pay off the mortgages.

Save:
Pros: cash in bank account gaining interest is never a bad thing!
Cons: the interest rate is RUBBISH!

BTL:
Pros: I have two of these already so have experience. I know how they work. I understand the UK market. I know the area. Around £200 per property per month profit. Property generally increases in value.
Cons: I've been lucky with my tenants so far, but that doesn't mean I will be with the next tenant. Profit isn't huge. The government could make it more difficult and less profitable for landlords. Tax!

Holiday let abroad:
Pros: excellent profit. We could use it (I'd look for somewhere that has cheap flights from our nearest airport). This has been a dream of mine for a long time. Property generally increases in value. Loads of property choice.
Cons: I don't know the areas well. I don't know the overseas market, or the tax process. I'd have to get someone to manage it. Would we get bored of going to the same place? Global recession. Potentially not looked after.

UK holiday let:
Pros: good profit. We could use it. Property increases in value. Increase in staycations due to Coronavirus, although this may be short term. I understand the UK market.
Cons: I've been looking for a UK property let within a couple of hours of home and can't find one, so potentially stock issues/lack of choice. Potential for damage. I'd (probably) have to get someone to manage it.

Pay off the mortgages:
Pros: save LOADS of interest - more than I would make in savings and UK BTLs.
Cons: I wouldn't find this very exciting - I like goals, but it's only one day a month that you'd get the thrill!

I've already ruled out buying a static caravan/lodge as the profit is too low.

I'm open to opinions/suggestions!

Sholly

The facts and figures, November:

Current debt: £20,645.22

Savings: £17,236.74

Deficit: £3,408.48

On my November payday, I will pay £1,863 off my debt and into savings which leaves £1,545.48 outstanding. I get paid early in December which means I will be debt neutral by Christmas! I'm really excited, and really proud of myself!

cannyscot_2

Hi
Very exciting to be so close to paying off! You have done so well ! 

I recently set up a offset mortgage which gives me flex as I am in same kind of place as you . 

Offset in terms of interest seems best at moment because my mortgage rate is low 1.64 but that is better than any bank savings rate !
I have also been buying stuff to sell - so if you can think of something that can churn your money up then that might be worth a punt to increase your monthly £1800 to have more to invest . I also have an Investment ISA with Hargreaves but there are plenty others . Currently because I invested in pharma I have had a 19% increase so worth studying ! 

Sounds like will be a brilliant Christmas celebration 🍾 and super liberating so enjoy it 

Sholly

cannyscot_2 said:

Hi
Very exciting to be so close to paying off! You have done so well ! 

I recently set up a offset mortgage which gives me flex as I am in same kind of place as you . 

Offset in terms of interest seems best at moment because my mortgage rate is low 1.64 but that is better than any bank savings rate !
I have also been buying stuff to sell - so if you can think of something that can churn your money up then that might be worth a punt to increase your monthly £1800 to have more to invest . I also have an Investment ISA with Hargreaves but there are plenty others . Currently because I invested in pharma I have had a 19% increase so worth studying ! 

Sounds like will be a brilliant Christmas celebration 🍾 and super liberating so enjoy it 

Thank you! It is really exciting! It's been a long time coming. We will probably celebrate with a takeaway 🍾 (it may have been a more exciting celebration if it wasn't for tier 3 🙈).
I'm tied into my mortgage for another couple of years but will definitely look into an offset mortgage after that, thank you - the rate is far better than I'm getting at the moment.
What have you been selling, if you don't mind me asking? I've joined a group on Facebook which is about selling on Amazon and they make loads of money! But it is mostly Americans and they seem to do much better than us with bulk buying, couponing etc.
19%! 👏🏻👏🏻 right industry at the right time! Do you have investments in various industries? Looks like Tesla and Amazon are popular. I've had lots of people suggest stocks and shares ISAs so I'm planning to put £500 into one in January just to figure out how it all works, but I think I'm leaning towards either more BTLs at the minute or buying a holiday home in Spain to use and rent, but there aren't many on Rightmove that I like in my current budget so I'd have to save for longer for that.
Thanks so much! Very liberating! I remember the day where I was working out if I could afford to feed both of us or just my son so it does feel momentous. I've promised him a shopping spree in January (dependant on COVID, we might take it online!) as he has put up with my frugal ways for a very long time, he deserves a treat 🙂

cannyscot_2

We have gone over to selling as a family !
so we literally sell everything we can find in our house - we are trying to be minimalists and not buy stuff unless it has benefits or longevity! So we all x4 have eBay accounts and recycle all. Then we look for retail arbitrage - so popular things hard to find or vintage stuff . We pop to car boot  for an hour every sat and sun morning and get plenty stuff - selling our  crap has given us about £800 a month over lockdown etc - eBay and gumtree and allowed us to find space in house for other things like improvements and storage .   We also between us make about another 2k on selling either vintage / popular items ( tbf- teenagers 1.2k  doing this with me facilitating). But means both are becoming self sufficient and I have less to pay out - ideally trying to cover household expenses from selling leaving other money to invest . I am just getting into shares but there is Such a lot to learn but obv at moment good place to make money ( or lose).  I am keen to BTL but with market so buoyant hard to find any great deals at moment . 

Sholly

Cannyscot_2 I think the minimalist mindset is becoming more and more mainstream - I've been trying to get there too; I sold loads of stuff pre-COVID but haven't started again yet, but I will. I need to get in the loft and see what treasure I can find!
£800 per month is incredible!! You must have a very good eye for the actual treasure (unlike the junk in my loft 😂). Great lessons for the teenagers too.
I agree about the shares - so much to learn. I think I prefer BTL as I feel like it's less risky - the market is too up and down, it would be terrible for my nerves! The housing market is crazy though - I've had 2 viewings on very cheap properties cancelled with 2 days notice because they've accepted offers from other buyers - they must be getting asking price.

Sholly

November payday arrived so a few more payments have been made to my debt, and my MBNA 0% deal ends tomorrow so I've paid that off 🙌🏻 so updated figures:

Current debt: £13,375.79

Savings: £12,127.65

Deficit: £1,248.14 🙌🏻

Debt neutral due date: 22nd December 2020 🙌🏻🙌🏻

Sholly

Why are the days up to debt neutral going so slow!!

cannyscot_2

Hang on in there ! Something so great is worth waiting for !