Going to buy a house, but will have no money left, living costs

Upsidedown_Bear

berbastrike wrote: »

I have £100k saved, can't stand living with parents anymore

You might be better waiting until the end of next year when you'll have more money.

berbastrike wrote: »

By the end of next year I hope to have £170,000 in the bank. I'm living with parents. I'm going to buy a house for around £100,000. Then the leftover £70,000, should I buy another house/flat to let or put it in a savings accounts. I want this money to fund my house bills which are approx £3k-£4k so there's no pressure if I don't have a job.

I was thinking buy to let is the better option, say I buy a flat for £70,000 and let it out for £400 per month, thats £4800 per year. Compared to around 2% in a savings account, £1400. Also as long as someone is renting the house, I will always have an income, so I'm not too bothered if the house value falls (they can't fall much more anyway)

so is letting the better option? any costs involved?

davenport151

https://forums.moneysavingexpert.com/discussion/4663633

check out the above lnk posted recently.

lindsaygalaxy

You dont have to answer, but how have you saved £100k on such a low income and is there a reason you couldnt earn more money?

If you really dont want to live with someone else, how about buying a 1 bed house with a garage, and convert the garage for extra room? Cheaper living costs then too.

lindsaygalaxy

Ok, now im really confused. How could you possible save £70k in a year with an income of just over £3200, or do you earn £70k plus a year atm and wil give up work when you buy a house?

HarryBarry

Probably irrelevant to the thread, but just being nosey im more interested in how the OP got the 100k and how 70k will be added by end of next year, on a wage of 3.2k.

As for living off of 3.2k in a year. If really possible, that depresses me a bit, because I can barely do it earning over 10 times that ! I think I might head to the money saving tips forum.

Also, 3.2k a year is probably about 1 day a week. Up it to 1.5 days a week and you'll be living like a king.

System

lindsaygalaxy wrote: »

Ok, now im really confused. How could you possible save £70k in a year with an income of just over £3200, or do you earn £70k plus a year atm and wil give up work when you buy a house?

not give up work but just planning for example if my business starts to fail (my business is the reason I've been able to save alot) then my other part time which pays £3200 would be enough to live on

monty-doggy

And how do you plan to pay for upkeep? Bust boiler? Leak? Damp? Etc? House buildings and contents cover?

itch_for_a_glitch

You have an income of £3200 ish, that isnt an income, its less than dole.

HarryBarry

berbastrike wrote: »

not give up work but just planning for example if my business starts to fail (my business is the reason I've been able to save alot) then my other part time which pays £3200 would be enough to live on

Ok so your income isn't 3.2k, its quite a bit more. If your business failed you can just get a full time job, so just go and buy the house now. Most people who buy a house are in nowhere near as good a financial position as you are. Maybe get a mortgage and have plenty of backup cash - you should be able to get a mortgage if you can show your business is making good money.

It's probably a waste of time even working part time isn't it? As you are taking a wage from your business then you would be paying tax and NI on the 3.2k.

lessonlearned

If I'm not mistaken the OP is self employed and has elected to "pay" himself a small wage from his secondary business, allowing him to save all earnings from the primary business.

Outgoings such as travel costs, broadband etc can be legitimately put through the business as expenses that so net £3200 becomes a lot more do-able.

I would think that £3200 is however, a tad low - ok for a short term fix but probably a bit too tight for comfort over the longer term. Another £1k would be more comfortable.

A two bed property is likely to be Band B, with a 25% reduction for single occupancy. A water meter would help reduce water bills.

Those solar panels might help with hot water. Do you have either an open fireplace or wood burner with access to cheap logs or free wood. This would help with the gas and leccy bills.

£1500 for food is ok, if you can cook. Otherwise it would be cheap nasty ready meals of little nutritional value. You could try and grow a few salad bits and some fruit and veg.

Buildings and contents should be around £250.

Don't forget if you work from home you can claim some expenses back for your "office".

A contingency fund for emergency repairs is not a bad idea. It would give you a safety net and peace of mind.

Clothes, entertainment etc are purely discretionary and you can spend as little or as much as you like. Most of us could easily go for at least a year without buying new clothes.

There is a book called something like "Living on a £1 a day" Sorry cannot remember the author off hand. Some good tips in there.

There used to be a thread on here, a challenge called something like the "Living on £4K a year". It was a couple of years ago now. There are some "Frugal Living Threads" so maybe the £4k has now been upped a little to keep up with inflation.

I would love to read your diary if you decide to go for it.

Just as a matter of interest. When I bought my first house I had very little left to live on. Yes it was a bit of a challenge at times, especially the first winter but I survived and thrived. :rotfl:

No new clothes, did all my washing by hand to save on leccy, nights out were few and far between but I was so happy in my little nest that staying in was no hardship.