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Hey ZTD, great to see you here and really good to have your opinion on this. I know you can be very level-headed about financial decisions, that's the best way to be! Trouble is with me, that I can't disassociate myself emotionally from the house. Even if it's crippling me and causing me stress and stopping me from having a life. So thanks for giving me your perspective. Now for the detail!
Of course. I get that. I guess what I was saying is that if I don't save, my position hardly changes, or changes v slowly. I don't have the time to be doing this at a slow pace any more, I feel like I need to do something more productive with my life. Certainly feel like I should put myself in a position to make more money faster. I'm trying to do it through my job, but I'm in the public sector so everything is pretty static. I'm trying to apply outside of the sector at the minute, have put in two applications in the last two weeks. It's not a great amount. But I also question whether I should stay on with the job I have, which pays me decent money for what I do and the level of responsibility I have, but instead try to make more money developing houses. (I would need to stay in current job in order to get a mortgage, as they won't give me one before I pass probation with a new employer).Living expense take priority over savings. Assuming you want to keep living that is...
I have done up this house, have a trusted crew of builders, know what looks good and also know the market in the area, as I've never stopped looking since I bought. I think I could make an informed decision. I could use the capital from my house to buy a small flat to live in and then use the rest to buy a house and get the builders to do it up. I've made money on this one and - very importantly - I've loved the thrill, pressure and reward of the work, not only the buying of cushions!
I think it could be very fulfilling and also a creative vent.Why?
I think I said it was emotionally difficult to sell this house and buy a new one. You see, I bought this house when I came out of my marriage with v little, and went through an immense amount of stress to make it. This included a family altercation, with my dad and brother who thought I could not make it (they live in a different country). I did though. I started off with £28k and zero debt and now, 3 years later, I have in theory £70k and £10 debt. I don't think I could ever have saved this amount in the three years, so even though I think it's been tough, it's given me a good experience, and also a sense of achievement. But also made it hard to detach. It's almost like this house is my baby! but the truth is, that houses can be bought and sold and it has got to make financial sense to stay in it.
Yes, that's very important, as that's what I cannot do at the moment with my lodger here.Or indeed of having friends to stay.
I need to see if it all ties up, if the money I'd save on the monthly payment for my mortgage are substantial enough to warrant the upheaval of the move. It may be a better option to rent the room out for 3 months in a year. Not an ideal option! I reckon I have got to try and work out an SOA and see how my other expenses would change, incl heating and water and cost of travel to work.What makes it "not sensible"?Well the choice on what bothers you the most:- The debt lingering, paying interest on said debt, having no life.
- Having no/less debt, moving house to a flat.
- Having a lodger.
There are advantages to each of those situations as well, but you'll have to fill those in.
Yes, absolutely. So, here they are:
1.
+Being in a house that is finished, where all the furniture is bought and in place, where I need to do no more guiding work. Having a house that sells easily. Poss I'd be able to reduce mortgage to £430 a month when it comes up for renewal again. The ability to rent out the spare room easily. Garden. Being used to it. OK area.
2.
+ new flat, new challenge, new design. Something exciting to do, a new project to throw myself into. A quiet area, better night's sleep. An additional £220 a month and potentially another £100 more in my pocket from lower cost of travel to work and lower bills. Some of this might be eaten up by the leasehold charges etc. that a house wouldn't incur. But overall, I would be better off.
3. £450-500 more a month. Flexibility to very quickly bring in a substantial income (=25% of my salary). I can always terminate a contract. No need to move, but I'd have to feel like treading water. This is the half way house option. I'd neither be completely happy in my house, nor would I get the opportunity to get into a business venture. It's the easiest route though, and a guaranteed earner.
Another route I have to explore is whether to buy a small cheap flat near work (the 1 bed that's on the market for £90k, try to get it for £85k, and move in there with a 10-20% deposit. Then, as step 2, go and get a house to develop and sell. That way I could do something that I love in a contained way. The trouble is, I would need to have a partner with a credit ability to get a residential mortgage or I'd have to get a BTL for the time I'm developing it. The fees on those would eat into the profit a bit!
If I got a 2 bed flat and did it up, it wouldn't be as easy to develop a new house, as less funds.
The new man is very ambitious and more of a risk taker than my ex. He also works very hard in a technical/professional role. He has a good head on his shoulders. Maybe that's something to explore when a bit more time passes, even as business partners. Need to get to know him a bit more, it's only bede a couple of months. He comes across as a v trustworthy person with true integrity, but it's a lot of money. Need to see how things go.Indeed. If you have a genuine nice man, make sure he doesn't get away. Thinking of ex's allows that to happen. He's an ex for a number of reasons.
He is lovely, Z. I'll have to wait and see, as so far the chemistry hasn't been there. Aaargh. So annoying, as everything else is spot on.
ha ha!!!! Yes, check me out. He wouldn't mind either, which is scary!You've just met him, and you're talking about commitments already...
Right, it's time to get up and go to work! Have a good day.* * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
Barclaycard -£5,867.52;
mbna1 - 3,009.22
mbna2 - 1,755.70
Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.040 -
catriona79 wrote: »Hey ZTD, great to see you here and really good to have your opinion on this. I know you can be very level-headed about financial decisions, that's the best way to be!
Hmmm...praise this early in the morning - what do you want?catriona79 wrote: »Trouble is with me, that I can't disassociate myself emotionally from the house. Even if it's crippling me and causing me stress and stopping me from having a life.
Emotions should be for people (and pets), not for items. Bricks won't love you back.catriona79 wrote: »I guess what I was saying is that if I don't save, my position hardly changes, or changes v slowly. I don't have the time to be doing this at a slow pace any more, I feel like I need to do something more productive with my life. Certainly feel like I should put myself in a position to make more money faster. I'm trying to do it through my job, but I'm in the public sector so everything is pretty static. I'm trying to apply outside of the sector at the minute, have put in two applications in the last two weeks. It's not a great amount.
But it is infinitely more than zero.catriona79 wrote: »But I also question whether I should stay on with the job I have, which pays me decent money for what I do and the level of responsibility I have, but instead try to make more money developing houses.
What's wrong with your current job? Is it too much time, or conflicts of interest, or what?catriona79 wrote: »(I would need to stay in current job in order to get a mortgage, as they won't give me one before I pass probation with a new employer).
If you need a mortgage, then full-time property developer is not for you.catriona79 wrote: »I have done up this house, have a trusted crew of builders, know what looks good and also know the market in the area,
So does that mean you are restricted to a geographical area? How big is it?catriona79 wrote: »as I've never stopped looking since I bought.
Yet another connoisseur of property !!!!!!...catriona79 wrote: »I think I could make an informed decision. I could use the capital from my house to buy a small flat to live in and then use the rest to buy a house and get the builders to do it up.
First thing to note, is that Capital Gains Tax would be payable on any property you sell for a profit unless it's your main residence. So essentially unless you want the tax-man taking a big chunk out of your profit, you'd need to live there unless it was uninhabitable. (Take tax advice as this is quite a bit of money at stake)catriona79 wrote: »I've made money on this one
How did you make money on this one? Go back and look through the sums. Did you take your property and move it from "below average value" to "above average value"? Or, was it the general uplift in prices that made you the money? A rising tide lifts all boats, and it's important to correctly attribute the right amount of profit to the right areas.
It's possible that you spent more on improvements than you "made" on improvements, and it's only the general rise in prices that bailed you out. You won't know until you've done the exercise above.catriona79 wrote: »and - very importantly - I've loved the thrill, pressure and reward of the work, not only the buying of cushions!
Cushion buying is important - don't knock it...catriona79 wrote: »I think it could be very fulfilling and also a creative vent.
It could. But it could also get expensive if done incorrectly.catriona79 wrote: »I think I said it was emotionally difficult to sell this house and buy a new one.
Right, if you want to make money doing this, then it is going to have to become easier. CGT is payable otherwise.catriona79 wrote: »You see, I bought this house when I came out of my marriage with v little, and went through an immense amount of stress to make it. This included a family altercation, with my dad and brother who thought I could not make it (they live in a different country).
Wow, I obviously live on a different planet. No such thing as giving advice and the occasional words of encouragement where they are?catriona79 wrote: »I did though. I started off with £28k and zero debt and now, 3 years later, I have in theory £70k and £10 debt. I don't think I could ever have saved this amount in the three years, so even though I think it's been tough, it's given me a good experience, and also a sense of achievement.
Yes, but remember that the £70K *is* theoretical and only exists when you have it in the bank. The debt is real alas.catriona79 wrote: »But also made it hard to detach. It's almost like this house is my baby! but the truth is, that houses can be bought and sold and it has got to make financial sense to stay in it.
Again - CGT if you're going to do them up. If you're not, then you still need to keep a detached view about it. Although it is your "freedom" house, it still may not be the best for you.catriona79 wrote: »I need to see if it all ties up, if the money I'd save on the monthly payment for my mortgage are substantial enough to warrant the upheaval of the move.
It will be. The upheaval is a one-shot event, while the monthly saving is a "flow" - the gift that keeps on giving. The question is not "if", but "when", and is that soon enough?catriona79 wrote: »It may be a better option to rent the room out for 3 months in a year. Not an ideal option! I reckon I have got to try and work out an SOA and see how my other expenses would change, incl heating and water and cost of travel to work.
Yes, work all the finances out. You may just say "sod it" and decide for other reasons what you're going to do, but you shouldn't do that until you know the finances are at least survivable.
But renting out for 3 months a year does seem like it would be more upheaval than for longer periods.catriona79 wrote: »Yes, absolutely. So, here they are:
1.
+Being in a house that is finished, where all the furniture is bought and in place, where I need to do no more guiding work.
Isn't that the work you enjoy?catriona79 wrote: »Having a house that sells easily.
That only comes into play once - when you sell. It should only matter as a reason to buy. Right now, it doesn't matter as a reason to stay.catriona79 wrote: »Poss I'd be able to reduce mortgage to £430 a month when it comes up for renewal again. The ability to rent out the spare room easily. Garden. Being used to it.
Didn't you want to shake things up?catriona79 wrote: »OK area.
What constitutes OK?catriona79 wrote: »2.
+ new flat, new challenge, new design. Something exciting to do, a new project to throw myself into. A quiet area, better night's sleep.
Not a given. Some flats were built with paper-thin walls.catriona79 wrote: »An additional £220 a month and potentially another £100 more in my pocket from lower cost of travel to work and lower bills. Some of this might be eaten up by the leasehold charges etc. that a house wouldn't incur. But overall, I would be better off.
3. £450-500 more a month. Flexibility to very quickly bring in a substantial income (=25% of my salary). I can always terminate a contract. No need to move, but I'd have to feel like treading water.
Despite being able to pay off debt and having savings?catriona79 wrote: »This is the half way house option. I'd neither be completely happy in my house, nor would I get the opportunity to get into a business venture. It's the easiest route though, and a guaranteed earner.
Another route I have to explore is whether to buy a small cheap flat near work (the 1 bed that's on the market for £90k, try to get it for £85k, and move in there with a 10-20% deposit. Then, as step 2, go and get a house to develop and sell. That way I could do something that I love in a contained way. The trouble is, I would need to have a partner with a credit ability to get a residential mortgage or I'd have to get a BTL for the time I'm developing it. The fees on those would eat into the profit a bit!
As would CGT.catriona79 wrote: »The new man is very ambitious and more of a risk taker than my ex. He also works very hard in a technical/professional role. He has a good head on his shoulders. Maybe that's something to explore when a bit more time passes, even as business partners. Need to get to know him a bit more, it's only bede a couple of months. He comes across as a v trustworthy person with true integrity, but it's a lot of money. Need to see how things go.
You need to spend a lot more time on it if you're going down that route, especially in terms of legal agreements/partnerships etc.
Somebody I was living with tried to do me over for £6K. I'd been living with them for over 6 years - so it's not that easy to tell.catriona79 wrote: »He is lovely, Z. I'll have to wait and see, as so far the chemistry hasn't been there. Aaargh. So annoying, as everything else is spot on.
What are you expecting from the chemistry, and what are you getting? Butterflies everytime you get into a car with him may just mean he's a bad driver...catriona79 wrote: »Right, it's time to get up and go to work! Have a good day.
You too - enjoy."Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0 -
Hmmm...praise this early in the morning - what do you want?
A few nuggets of Z wisdom!!;)
Fair point well made. You're such a "T", as well as a Z, you know.Emotions should be for people (and pets), not for items. Bricks won't love you back. (MBTI wise)What's wrong with your current job? Is it too much time, or conflicts of interest, or what?
Current job - there are a lot of issues with it, main one being that they do not develop their own people at all. On the rare occasions there is an opening (mat replacement for example), it goes out to agency. All the people there have been in the same roles forever, all are down and fed up. From a moral standpoint I'm against recruiting agency staff and paying them more from a budget that is reducing so significantly Ina matter of weeks, that there will be hug staffing cuts. I would be wasting energy fighting it, so I've decided to steadily apply for other jobs. I've only been there 4.5 months...
They pay well though, so at least I can find consolation in that.If you need a mortgage, then full-time property developer is not for you.
So does that mean you are restricted to a geographical area? How big is it?
Yet another connoisseur of property !!!!!!...
Yes, I was never going to do it as a full time job, just as something on the side. The geographical area I know well is a a part of Birmingham, it's not massive but not too small either. Some of it is still affordable, so that's what I'd aim for.
Haha at the property !!!!!!! Oh yes, I'm one of those too!First thing to note, is that Capital Gains Tax would be payable on any property you sell for a profit unless it's your main residence. So essentially unless you want the tax-man taking a big chunk out of your profit, you'd need to live there unless it was uninhabitable. (Take tax advice as this is quite a bit of money at stake)
Good point. I hadn't actually considered that. And yes, you're right. I'd have to live there, absolutely. So that one is out. I'm slowly narrowing down my options!How did you make money on this one? Go back and look through the sums. Did you take your property and move it from "below average value" to "above average value"? Or, was it the general uplift in prices that made you the money? A rising tide lifts all boats, and it's important to correctly attribute the right amount of profit to the right areas.
It's possible that you spent more on improvements than you "made" on improvements, and it's only the general rise in prices that bailed you out. You won't know until you've done the exercise above.
I will do the sums, as you say. I get where you are coming from. I bought at a good time, when the market was at a standstill, for a reduction in asking price, in a by decent street in an up and coming area. Yes, the houses back then were about £165k, I bought mine for £138k. Now they are on average £175-180k, mine has been valued at £185k. I was very careful, had good and cheap builders and did a lot of the work myself. Did all the painting, laid down turf, I even raced to b&q once just before closing time to get door handles and then spent half the night screwing them on. Nearly got locked out!:)
I know that the most important thing is to buy at the right price. To do that you do need to be a hot buyer, ready to move. I did think for a while that I could sell up, rent and buy again.Wow, I obviously live on a different planet. No such thing as giving advice and the occasional words of encouragement where they are?
No, they were fairly harsh, even looking at it from a distance, now that we have patched things up a bit. Now they trust that I know what I am doing though!
Yes, but remember that the £70K *is* theoretical and only exists when you have it in the bank. The debt is real alas.
Again - CGT if you're going to do them up. If you're not, then you still need to keep a detached view about it. Although it is your "freedom" house, it still may not be the best for you.
It will be. The upheaval is a one-shot event, while the monthly saving is a "flow" - the gift that keeps on giving. The question is not "if", but "when", and is that soon enough?
Yes, work all the finances out. You may just say "sod it" and decide for other reasons what you're going to do, but you shouldn't do that until you know the finances are at least survivable.
That's another bit of homework for me. I'll get on with it. I'll do a simulation spreadsheet. I think I'll check out all the financials, see which ones are not doable, then out of those that are doable I'm going to choose the one that I most want to do. Shaking things up is high on the list!That only comes into play once - when you sell. It should only matter as a reason to buy. Right now, it doesn't matter as a reason to stay.
It kind of matters in a way that the decision to buy is more reversible, if you catch my drift. If ever you need to up sticks, it doesn't take forever...Somebody I was living with tried to do me over for £6K. I'd been living with them for over 6 years - so it's not that easy to tell.
Ouch! Eek, that's awful, Z.
What are you expecting from the chemistry, and what are you getting? Butterflies everytime you get into a car with him may just mean he's a bad driver...
I just never feel like I can't wait to see him. Despite him doing and saying all the right things. Maybe it will come. And he actually designs and tests cars, so drives at crazy speeds! No butterflies though!!!;)* * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
Barclaycard -£5,867.52;
mbna1 - 3,009.22
mbna2 - 1,755.70
Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.040 -
catriona79 wrote: »A few nuggets of Z wisdom!!;)
Wisdom. It's a brand of toothpaste...catriona79 wrote: »Fair point well made. You're such a "T", as well as a Z, you know. (MBTI wise)
Not such a "T" as in TW*T wise?catriona79 wrote: »I've decided to steadily apply for other jobs. I've only been there 4.5 months...
Sounds like they have a retention problem then. Do they know they have, or is that currently in denial?catriona79 wrote: »Yes, I was never going to do it as a full time job, just as something on the side. The geographical area I know well is a a part of Birmingham, it's not massive but not too small either. Some of it is still affordable, so that's what I'd aim for.
It's best to. At the end of the day, someone has to buy what you're selling. In London, you may have the foreign billionaires trying to launder their money outside their home country, but Birmingham - not so much...catriona79 wrote: »I even raced to b&q once just before closing time to get door handles and then spent half the night screwing them on.
If you're going to do this, you may also want to investigate alternative/specialist suppliers. I find a lot of stuff at B&Q is expensive crap, and having someone who sells decent stuff at a decent price will really help.catriona79 wrote: »I know that the most important thing is to buy at the right price. To do that you do need to be a hot buyer, ready to move. I did think for a while that I could sell up, rent and buy again.
But now you don't?catriona79 wrote: »It kind of matters in a way that the decision to buy is more reversible, if you catch my drift. If ever you need to up sticks, it doesn't take forever...
No, that's exactly what I was saying though it may have been a touch garbled. When you make the decision to buy, the ability to sell is important. When you're making the decision whether to stay or to go, it's irrelevant. It's already baked in the cake at that point as it were.catriona79 wrote: »I just never feel like I can't wait to see him. Despite him doing and saying all the right things. Maybe it will come. And he actually designs and tests cars, so drives at crazy speeds!
He needs a little self-control then. I never drive that quickly when I have passengers. The stains are hard to get out of the seats for a start...catriona79 wrote: »No butterflies though!!!;)
So what would make it different? Do you think you're too jaded now?"Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0 -
Not such a "T" as in TW*T wise?
Nooooo.....!Sounds like they have a retention problem then. Do they know they have, or is that currently in denial?
Denial all the way. Terrible recruitment strategy as well, where they have huge expectations, don't appoint those who would need a bit of development but have the potential. Instead, they appoint a person who's already at the level they require (or above); the person then finds another job and a week before they are due to start rings my work to say they aren't going to be taking up the job offer. This has happened twice for the same data analyst post, which has been vacant since March! "The market says No" but they can't hear it. Frustrating.
Agree with what you're saying about buying somewhere that will sell quickly. Where I am now I have seen those 2 bed terraces go like hotcakes, to first time buyers. Affordability is key, I think that too.
In that way, the flats I have been looking at, albeit cheap, don't really fit the brief. There are two main locations I've been looking at, all along a train line into the centre.
A. The cheap flats, that are 90k for a 1 bed and 115 for a 2 bed are in a quiet area, and would give me much more disposable income, but there are several on the market and they are not selling. My friend lives in one of those blocks, I have spent lots of time there, they are quiet and there is nothing wrong with them, just the area is a little less desirable as further away from shops and the blocks themselves are 1980s dark brown brick, a bit unattractive etc.
B. the ones that are in the better location go really quickly - almost instantaneously - and are also a little but more - 120k for a one bed and 140 for a two bed. They would be really easy to rent out and sell, and are close to shops and station. But - if I bought one of those, then the mortgage wouldn't be that much less and I'd have maintenance fees to cover. The difference is not quite enough to warrant moving from a house to a flat, I feel.
So I thought that if I'm doing it to have more income - the only way is to go for the cheaper flats. Which will mean moving somewhere that is decent, cheap but potentially difficult to sell. But I would be able to get it at a good price. Just yesterday one of the flats got reduced from 120 to 115. I think I could get a good deal, in the sense that I would have a small mortgage.
I have now got a supplier of all building materials; it's a trade supplier and I can use my builders' account to buy stuff. I'll be going there for paint on Friday to paint stinker's room!!
You are right, b&q are awfully expensive.
As for moving, i would have to make myself a hot buyer, to stand a chance of getting the houses which need doing up. They usually go to builders who are cash buyers. It would help tremendously if I were to have enough cash to make a cash purchase. I think at the moment, where I am looking I am about 15k short of what I would need. The solution to that was to develop the attic in my house, sell the house and then have enough deposit. I reckon I could get £180k for my house currently and a 3 bed on the same street sold for £227k at the start of 2014. My builders have quoted £22k for the work; say it was £27k all in, it would still leave me with 20k profit. Trouble is, that's a massive risk that the house will be much more difficult to sell, as it will then become a 3 bed first family home, rather than a first time buyers' one. People are more cautious when they buy those and are not so eager to just fall in love with the house and go for it.
That was the advice from the estate agent, though I know they have vested interest. There have been a couple of houses like that which sold recently in my street; I will have to see what they went for, but it's not yet available online. The market has visibly slowed down and. Think I could have got an extra £5k for the house, had I sold in the spring. But that's not a problem, I wasn't ready to sell then, and I'm sure I can find another way out of this.
Re: man, he's never driven fast with me, but he drives fast in the circuit. He's a real petrol head!
I really don't know if it's me being jaded or possibly still in love with my ex. Difficult times. New man v intuitive, asked me about it yesterday. Said he didn't feel I was 100% committed and asked what the reason was. He was incredibly supportive though, said if I needed time, he can wait. He's such an idealist. So far, I have no feelings for him, even though I can clearly see that on paper we would be a really good couple. He's also ambitious and sets himself goals. He's positive. And he genuinely likes me.
Obviously, I can't force myself to feel anything, though he says we need to spend time together and is pushing me to spend ore time with him. Which, for the moment, I'm not that keen to do. I know he's great but I just don't really ever feel that I can't wait to see him.* * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
Barclaycard -£5,867.52;
mbna1 - 3,009.22
mbna2 - 1,755.70
Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.040 -
catriona79 wrote: »Denial all the way. Terrible recruitment strategy as well, where they have huge expectations, don't appoint those who would need a bit of development but have the potential. Instead, they appoint a person who's already at the level they require (or above); the person then finds another job and a week before they are due to start rings my work to say they aren't going to be taking up the job offer. This has happened twice for the same data analyst post, which has been vacant since March! "The market says No" but they can't hear it. Frustrating.
Maybe it's time to start asking pointed questions. Is there not a "second chance" candidate procedure in your recruitment?catriona79 wrote: »Agree with what you're saying about buying somewhere that will sell quickly. Where I am now I have seen those 2 bed terraces go like hotcakes, to first time buyers. Affordability is key, I think that too.
In that way, the flats I have been looking at, albeit cheap, don't really fit the brief. There are two main locations I've been looking at, all along a train line into the centre.
A. The cheap flats, that are 90k for a 1 bed and 115 for a 2 bed are in a quiet area, and would give me much more disposable income, but there are several on the market and they are not selling.
At that price. Everything sells at a "right price".catriona79 wrote: »My friend lives in one of those blocks, I have spent lots of time there, they are quiet and there is nothing wrong with them, just the area is a little less desirable as further away from shops and the blocks themselves are 1980s dark brown brick, a bit unattractive etc.
So utilitarian, but not aesthetic? Have you checked for the prices they do *actually* go at?catriona79 wrote: »B. the ones that are in the better location go really quickly - almost instantaneously - and are also a little but more - 120k for a one bed and 140 for a two bed. They would be really easy to rent out and sell, and are close to shops and station. But - if I bought one of those, then the mortgage wouldn't be that much less and I'd have maintenance fees to cover. The difference is not quite enough to warrant moving from a house to a flat, I feel.
So I thought that if I'm doing it to have more income - the only way is to go for the cheaper flats. Which will mean moving somewhere that is decent, cheap but potentially difficult to sell.
At the price they're being advertised currently at. Which of course you wouldn't pay, as they are difficult to sell and that would need to be reflected in your purchasing price.catriona79 wrote: »But I would be able to get it at a good price. Just yesterday one of the flats got reduced from 120 to 115. I think I could get a good deal, in the sense that I would have a small mortgage.
Yes, but I take it that all the above is to move into a new flat solely for the purposes of reducing your expenditure, and not for the purposes of buy, do up and sell? Is that right?catriona79 wrote: »As for moving, i would have to make myself a hot buyer, to stand a chance of getting the houses which need doing up.
Which I take would be bought for less than the prices you quoted above?catriona79 wrote: »They usually go to builders who are cash buyers. It would help tremendously if I were to have enough cash to make a cash purchase. I think at the moment, where I am looking I am about 15k short of what I would need. The solution to that was to develop the attic in my house, sell the house and then have enough deposit. I reckon I could get £180k for my house currently and a 3 bed on the same street sold for £227k at the start of 2014. My builders have quoted £22k for the work; say it was £27k all in, it would still leave me with 20k profit.
Just to make sure I have this right. You are short of £15K, so you are going to spend £27K to try to get that? Where are you going to get the £27K from?
How long will this take?catriona79 wrote: »Trouble is, that's a massive risk that the house will be much more difficult to sell, as it will then become a 3 bed first family home, rather than a first time buyers' one. People are more cautious when they buy those and are not so eager to just fall in love with the house and go for it.
Also it would be £47K dearer, which doesn't sound a lot when you say it quickly, but to make up the difference (mortgage wise) through wages is about a £13K pay rise.catriona79 wrote: »That was the advice from the estate agent, though I know they have vested interest. There have been a couple of houses like that which sold recently in my street; I will have to see what they went for, but it's not yet available online. The market has visibly slowed down and. Think I could have got an extra £5k for the house, had I sold in the spring. But that's not a problem, I wasn't ready to sell then, and I'm sure I can find another way out of this.
Do you know *why* the market has visibly slowed down?catriona79 wrote: »Re: man, he's never driven fast with me, but he drives fast in the circuit. He's a real petrol head!
With furry dice and everything?catriona79 wrote: »I really don't know if it's me being jaded or possibly still in love with my ex.
Someone said (on MSE as it happens) that the best way to get over an old lover, is to get under a new one. :rotfl:
I don't know if that's true - but it made me laugh...catriona79 wrote: »Difficult times. New man v intuitive, asked me about it yesterday. Said he didn't feel I was 100% committed and asked what the reason was. He was incredibly supportive though, said if I needed time, he can wait. He's such an idealist. So far, I have no feelings for him,
None whatsoever? You don't even smile (naturally) when you see him, as you would a good friend?catriona79 wrote: »even though I can clearly see that on paper we would be a really good couple. He's also ambitious and sets himself goals. He's positive. And he genuinely likes me.
Obviously, I can't force myself to feel anything, though he says we need to spend time together and is pushing me to spend ore time with him. Which, for the moment, I'm not that keen to do.
Why? Is spending time with him a chore?catriona79 wrote: »I know he's great but I just don't really ever feel that I can't wait to see him.
But do you feel that when you do see him, that it was worth turning up?"Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0 -
Hello Z and thanks for more nuggets. You make me think and challenge my ideas - it's really useful
Re work, they are extremely hierarchical and have apparently said that the other candidates were not appointable, as would need training. Well, given that the post has been vacant since March, you'd think they'd have trained someone up already! The trouble is that they do not want to develop people or give internal promotions. They don't see the need for it, and it's a huge problem for me also. Appointments are exclusively external or through an agency. And they are about to announce redundancies. Unbelievable.
So, the flats. Yup yup, I see what you mean about the price. There are several on the market in that area and yes, they would most probably sell at a lower price. So really, it might be a great time to buy them, as I could make a lower offer and they might accept.
Fair point re challenging me about whether I want to buy a flat to live in or somewhere to do up and sell.
The plan was to:
Keep my job and do this on the side
And either:
1. Develop the loft (money to do that: from savings 7k, parents gift to pay for car £10k to be got at Xmas time, and the rest (materials, prob bought online) just put on a 0% CC or get a loan or get another homeowner loan)
Then sell the house, and make some profit. Then either buy another house to do up and rent a room for me to live in for 3 months or buy a flat outright and not have a mortgage. Obviously developing the roof would take forever , prob 2 months, then selling, so priorities might change.
Now I am not so sure that it is such a great idea any more. Recently there was a house in my street which had had that done (though not to a great standard, and the rest of the house needed doing up too) and it only sold for £193,500 despite it starting on the market for £215k and then being reduced to £205. Seems like your point re the price difference is spot on!
Too much risk, I'd be tying up all my money and putting it in one basket. Though admittedly, having done the attic up, I could then easily rent two rooms put and bring in £900 a month.
2. Sell the house, with an online estate agent, minimise expenditure. Hopefully get £180 for it (that is realistic, judging by what sold house prices at r!ghtmove say). Pay off mortgage and loan and be left with equity of 66,500. Plus £10k from mum and dad and 7k savings. That's £84,500.
In theory, I could then buy a 1 bed flat in the cheaper blocks of flats (the cheapest one is 90k, if I was a cash buyer I could get it for £83-4k perhaps, it hasn't sold in months). I would then have no mortgage, and it is more than habitable. It's not to my taste, but that doesn't matter, it's modern. I would love having no mortgage and I would have a lot of disposable income - I anticipate that all monthly bills would not exceed £400. I could then easily save £1k a month.
The downside would be that once the dust settles I would probably feel a bit "and what now?..." And I would have no money to make plans with. But I could I suppose take a couple of years to make some savings. And knowing that I could save so much would be great. I could pay my CCs very speedily. It would also give me more security in looking for another job, as I would not have to worry so much about expenditure - it would be smaller.
Alternatively, obviously I could also do up another house and earn some money.
Or I could buy the 2 bed flat, currently on for 112,500, which needs doing up. It's overpriced, as one like that which looks nice inside has just been reduced to 115k. It has two bedrooms and a lovely square roof terrace. I could have friends and family to stay, and a place to sit outside and somewhere to put my garden corner sofa;)
I would then have a mortgage though, even if only small. Maybe £30-35k as this one would need doing up a bit. Not the end of the world, I know. It's better for the future (I do want to have a baby by myself if I don't find a man) and it's got a terrace. It's lovely really!
As for the prices they actually go for, only one sold this year for £120k. I assume this is a 2 bed. In 2013 my friend bought hers (2 bed, £104k), and previous prices are in the £80-120k range, probably depending on whether it was a 1 or 2 bed and the state of repair). Maybe I could get a bargain, like you say. Market is clearly saturated, as they are not shifting. There is no problem with the area, I am positive about that. They are not pretty to look at, but are v respectable and quiet. I've been in my friends flat at all times of day and night and it's pretty idyllic.
3. Until yesterday I thought there was option 3. Which was sell my house, buy a little flat with 10% down payment and use the rest of the capital to buy a house to do up with a BTL mortgage, using the money I have for a 25% down payment and the rest for the building work. Now, obviously, this plan isn't that great if CGT is payable, which is a tiny detail I had missed out!Someone said (on MSE as it happens) that the best way to get over an old lover, is to get under a new one. :rotfl:
I don't know if that's true - but it made me laugh...
None whatsoever? You don't even smile (naturally) when you see him, as you would a good friend?
Why? Is spending time with him a chore? But do you feel that when you do see him, that it was worth turning up?
Ha, you read my thoughts. That's my next plan. See how it goes. My lodger commented yesterday that my new man did not seem manly enough for me and seemed quite passive. There may be some truth in it, I think it's the fact that he's an introvert and English is not his first language so social situation are still a bit more difficult for him.
But obviously now he's also said that he would push me to spend more time with him, which is anything but passive. (Obviously, there is also the doubt whether that will work at all!). He's trying to get what he wants and I also feel like I have to explore it, because on paper he is just perfect and I've never met anyone like him.
Hey ho. Life, eh?
How is life in the Z household?* * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
Barclaycard -£5,867.52;
mbna1 - 3,009.22
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catriona79 wrote: »Hello Z and thanks for more nuggets. You make me think and challenge my ideas - it's really useful
Re work, they are extremely hierarchical and have apparently said that the other candidates were not appointable, as would need training.
Well, start asking pointed questions, and if you get the standard fobbing-off, start escalating it. Hierarchical organisations do not like questions coming down from above.catriona79 wrote: »Well, given that the post has been vacant since March, you'd think they'd have trained someone up already! The trouble is that they do not want to develop people or give internal promotions. They don't see the need for it, and it's a huge problem for me also. Appointments are exclusively external or through an agency. And they are about to announce redundancies. Unbelievable.
Well I've just survived (yet) another restructure. Time for a mortgage while the getting is good I feel.catriona79 wrote: »So, the flats. Yup yup, I see what you mean about the price. There are several on the market in that area and yes, they would most probably sell at a lower price. So really, it might be a great time to buy them, as I could make a lower offer and they might accept.
You'll never find out until you try.catriona79 wrote: »Fair point re challenging me about whether I want to buy a flat to live in or somewhere to do up and sell.
The plan was to:
Keep my job and do this on the side
And either:
1. Develop the loft (money to do that: from savings 7k, parents gift to pay for car £10k to be got at Xmas time, and the rest (materials, prob bought online) just put on a 0% CC or get a loan or get another homeowner loan)
Then sell the house, and make some profit. Then either buy another house to do up and rent a room for me to live in for 3 months or buy a flat outright and not have a mortgage. Obviously developing the roof would take forever , prob 2 months, then selling, so priorities might change.
Now I am not so sure that it is such a great idea any more. Recently there was a house in my street which had had that done (though not to a great standard, and the rest of the house needed doing up too) and it only sold for £193,500 despite it starting on the market for £215k and then being reduced to £205. Seems like your point re the price difference is spot on!
Well my concern comes from your comment "The market has visibly slowed down". The last time the market slowed down, a number of studies found the only home improvement that raised the house value more than it cost, was "paint". Everything else was a loss. That's not the best time to do a loft-conversion for money.
Now I know an election is coming up, but there are limits to the juicing that can occur, and home ownership is long-term enough for the effects to have disappeared completely by the time it comes to sell.catriona79 wrote: »Too much risk, I'd be tying up all my money and putting it in one basket. Though admittedly, having done the attic up, I could then easily rent two rooms put and bring in £900 a month.
Would this be the renting that you hate doing?catriona79 wrote: »2. Sell the house, with an online estate agent, minimise expenditure. Hopefully get £180 for it (that is realistic, judging by what sold house prices at r!ghtmove say). Pay off mortgage and loan and be left with equity of 66,500. Plus £10k from mum and dad and 7k savings. That's £84,500.
In theory, I could then buy a 1 bed flat in the cheaper blocks of flats (the cheapest one is 90k, if I was a cash buyer I could get it for £83-4k perhaps, it hasn't sold in months). I would then have no mortgage, and it is more than habitable. It's not to my taste, but that doesn't matter,
You'd be surprised by how much it does matter. It's more of a case of "how long can you put up with it"?catriona79 wrote: »Or I could buy the 2 bed flat, currently on for 112,500, which needs doing up. It's overpriced, as one like that which looks nice inside has just been reduced to 115k.
Yes, I've noticed that in houses recently to. "It has great potential", then expect you (the buyer) to pay them (the seller) for the fact it's a wreck and hasn't been touched since the 1970's! Meanwhile a house up the road goes for only £20,000 more when it would cost at least £50,000 to get it up to that standard.catriona79 wrote: »It has two bedrooms and a lovely square roof terrace. I could have friends and family to stay, and a place to sit outside and somewhere to put my garden corner sofa;)
I would then have a mortgage though, even if only small. Maybe £30-35k as this one would need doing up a bit.
MFW board awaits you...catriona79 wrote: »Not the end of the world, I know. It's better for the future (I do want to have a baby by myself if I don't find a man)
It's the Second Coming of the Lord!
Immaculate Conception part 2...catriona79 wrote: »and it's got a terrace. It's lovely really!
Worth a £30,000 mortgage?catriona79 wrote: »As for the prices they actually go for, only one sold this year for £120k. I assume this is a 2 bed. In 2013 my friend bought hers (2 bed, £104k), and previous prices are in the £80-120k range, probably depending on whether it was a 1 or 2 bed and the state of repair). Maybe I could get a bargain, like you say. Market is clearly saturated, as they are not shifting. There is no problem with the area, I am positive about that. They are not pretty to look at,
Well this is where I differ from the rest of the world. The only place you can't see the worst house on the estate, is by living in the worst house on the estate... :rotfl:catriona79 wrote: »but are v respectable and quiet. I've been in my friends flat at all times of day and night and it's pretty idyllic.
Starting to sound like a plan.catriona79 wrote: »Ha, you read my thoughts. That's my next plan. See how it goes. My lodger commented yesterday that my new man did not seem manly enough for me and seemed quite passive. There may be some truth in it, I think it's the fact that he's an introvert and English is not his first language so social situation are still a bit more difficult for him.
Now I'm a little confused by this. So, by "passive" and "introspective" (and by implication in social situations rather than stuff like DIY) - do you mean he just sits back and lets you talk?
Would you rather he:- Told you to shut up?
- Talked over you?
What would you want from "manly" in that situation?catriona79 wrote: »But obviously now he's also said that he would push me to spend more time with him, which is anything but passive.
Maybe he's found a subject/situation where he actually does care one way or the other?catriona79 wrote: »(Obviously, there is also the doubt whether that will work at all!).
Don't know until you try.catriona79 wrote: »He's trying to get what he wants and I also feel like I have to explore it, because on paper he is just perfect and I've never met anyone like him.
Hey ho. Life, eh?
Life has its opportunities from time-to-time.catriona79 wrote: »How is life in the Z household?
Ups and downs. At least today, I know I don't have to write yet another application form and go to interview for a job I already do.
Which is good."Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0 -
Good morning, it's Saturday!
Big day here as my lodger moves out! House to myself again, it's going to be bliss!
I've been awake since 3.30am, as the lodger had a visitor last night, but not going to let it annoy me, it's a big day! Whoop whoop!
It's raining outside and it's a bit miserable - why can't it just be sunny, I don't know!?
Going to go off to Sainsbury's and get the car cleaned while I shop. It's very MSE, only a fiver. And my little black ant of a car needs a clean badly!
Z, you voice of reason, thanks for your input. Seems like you're going through restructures en masse too. All I hear around me is reductions. I don't think I'm going to be affected this time, but I work with people who have families and might be let go. And I've just written a new redundancy procedure. Ugh.
Sorry to hear about all those applications and assimilations, it's massively disheartening. History shows you've been safe, is it likely to continue? Is your role transferable? How do you feel about looking elsewhere?Well I've just survived (yet) another restructure. Time for a mortgage while the getting is good I feel.
So, are you going to get yourself tied down then? Have you looked around, have you got a clear idea of what you want and where to find it?
Exciting times?!
Immaculate conception, hehe. Hope not!!!!!! *eye roll*
I'm fully on board with using that piece of MSE advice on how to get over someone!
Yes, house interiors do matter, I know... I lived in a dated house with my husband and hated it throughout. I love my modern house that I've designed to my taste. There is a difference in how it makes you feel, you're right. I had the whole thing done at the beginning and got into debt, but at least it's a finished job and no mess and dust every few months.
Did I tell you I scorched a bit of the sill in the kitchen yesterday. So annoying! :mad:
As for the difference between the 1 bed flat at £85k and the two bed with balcony at £110, it's not only the terrace. I'd imagine it must be quite claustrophobic to live in such a tiny space as a 1bed + 1 reception. Two bedrooms and the outside space would be worth it for that and also to have friends and fam to stay, especially as they are overseas.
But it's also tempting to take the no mortgage option. How amazing would that be?!?!!!
Right, time to get out and get on before the Sat morning mad rush starts. Hope lodger gets out at 11 as he said he would. I predict a massive hangover. I saw he had opened (and drunk) my bottle of Sauvignon last night and there were 2 glasses on the kitchen counter.
Thank goodness no more of this now!
Hallelujah indeed!!!!* * * Catriona's Credit Card Countdown * * * from -£16k to debt neutraldom - for my debt diary click here
Barclaycard -£5,867.52;
mbna1 - 3,009.22
mbna2 - 1,755.70
Savings £5,017 MFiT #25 £2,627/£10k; daily interest £5.040 -
catriona79 wrote: »Good morning, it's Saturday!
You're awfully cheerful for this early on a saturday morning...catriona79 wrote: »Big day here as my lodger moves out! House to myself again, it's going to be bliss!
I've been awake since 3.30am, as the lodger had a visitor last night,
:eek:catriona79 wrote: »but not going to let it annoy me, it's a big day! Whoop whoop!
It's raining outside and it's a bit miserable - why can't it just be sunny, I don't know!?
Going to go off to Sainsbury's and get the car cleaned while I shop. It's very MSE, only a fiver. And my little black ant of a car needs a clean badly!
Mine is getting a clean as well, since it's raining here...catriona79 wrote: »Z, you voice of reason, thanks for your input. Seems like you're going through restructures en masse too. All I hear around me is reductions. I don't think I'm going to be affected this time, but I work with people who have families and might be let go. And I've just written a new redundancy procedure. Ugh.
Oh dear... :eek:catriona79 wrote: »Sorry to hear about all those applications and assimilations, it's massively disheartening. History shows you've been safe, is it likely to continue? Is your role transferable? How do you feel about looking elsewhere?
Well currently we're so scarce on the ground, pretty much everyone is unique - and people complain like mad that when staff are off, jobs don't get done, and nobody knows anything to do with the subject.
However, that probably won't lead to any sort of job security, as the work would just be given to somebody who knows nothing about it, has no aptitude for it, and we'll lurch from one disaster to another with "we are where we are".catriona79 wrote: »So, are you going to get yourself tied down then?
No, nobody has offered that...catriona79 wrote: »Have you looked around, have you got a clear idea of what you want and where to find it?
I have no overriding quantitative criteria to meet apart from it needs to be nearish to work and it has to have a half-decent internet connection. "It has to be a nice area" is rather more vague though.catriona79 wrote: »Exciting times?!
I believe in the chinese definition of a curse...catriona79 wrote: »Immaculate conception, hehe. Hope not!!!!!! *eye roll*
:rotfl:catriona79 wrote: »I'm fully on board with using that piece of MSE advice on how to get over someone!
Yes, no fun otherwise...catriona79 wrote: »Yes, house interiors do matter, I know... I lived in a dated house with my husband and hated it throughout. I love my modern house that I've designed to my taste. There is a difference in how it makes you feel, you're right.
For me it depends on what in particular is "dated". So for me, wood panelling is OK, but fireplaces looking like "dry stone walling" is not OK...catriona79 wrote: »Did I tell you I scorched a bit of the sill in the kitchen yesterday. So annoying! :mad:
How did you manage that? Is it bad?catriona79 wrote: »As for the difference between the 1 bed flat at £85k and the two bed with balcony at £110, it's not only the terrace. I'd imagine it must be quite claustrophobic to live in such a tiny space as a 1bed + 1 reception.
For some people in London, the bed is the reception...catriona79 wrote: »Two bedrooms and the outside space would be worth it for that and also to have friends and fam to stay, especially as they are overseas.
But it's also tempting to take the no mortgage option. How amazing would that be?!?!!!
It's not that amazing. It's the same difference between a car with a loan and a car without. You still have to insure and maintain and all that (not so) good stuff.catriona79 wrote: »Right, time to get out and get on before the Sat morning mad rush starts.
Well, you enjoy yourself.catriona79 wrote: »Hope lodger gets out at 11 as he said he would. I predict a massive hangover. I saw he had opened (and drunk) my bottle of Sauvignon last night and there were 2 glasses on the kitchen counter.
Thank goodness no more of this now!
Hallelujah indeed!!!!
:rotfl:"Follow the money!" - Deepthroat (AKA William Mark Felt Sr - Associate Director of the FBI)
"We were born and raised in a summer haze." Adele 'Someone like you.'
"Blowing your mind, 'cause you know what you'll find, when you're looking for things in the sky." OMD 'Julia's Song'0
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