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

Dunroamin

A single persn has to be working for at least 30 hours per week and be over 25 to qualify for WTC - the living arrangements are irrelevant.

HarryBarry

Ok so any chance we can have the full story berba?

I'm guessing it's quite a bit different to the 1 day a week mcdonalds job one might have assumed from the opening post

Is this thread more to do with how much you can claim to be living off should the taxman start looking closely at you?

I could be way off as it all could be interpreted in many different ways, but I know its possible to be very...creative...when running your own business.

If you gave a bit of info about what happens to money from the business and what the "part time" work is all about, someone might be able to suggest how best to work your money to buy a house while considering all eventualities (probably won't be me though, I'm just being a bit nosey and after ideas should I run a small business in future).

System

full story...
business going very well, have saved £100k at 22.
also have part time job earning £3k.

just planning for worst case scenario (business stops making money), so could I survive on £3k on year, hope this makes sense. will probably go to uni in next 3 years if I can be bothered with studying which I hate with a passion

System

pawsies wrote: »

My electric is £100ish every 3 months so about £400 a year, and gas is about £60 every 3 months so about £240 a year BUT I would not change provider as they have great customer service and use only green energy which I strongly support so that's my own fault haha

what supplier, I like the sound of them.

Your electric is too high, I reckon I could it to £100 per year (for me anyway)

moneyistooshorttomention

berbastrike wrote: »

full story...
business going very well, have saved £100k at 22.
also have part time job earning £3k.

just planning for worst case scenario (business stops making money), so could I survive on £3k on year, hope this makes sense. will probably go to uni in next 3 years if I can be bothered with studying which I hate with a passion

Crikey!

Well with that sort of financial nous - then why break it off to do some studying? Seems to me like you don't need to think of studying if you are that "good financially" - so why bother if you don't fancy the idea?

NB; that's a compliment BTW...

lessonlearned

I tend to agree with this.

If you are not a natural academic and don't much care for studying then why bother. University isn't the be all and end all.

You either go to uni to further your career aspirations or because you are of a naturally academic persuasion and you are studying for the joy of learning.

Anything else is a waste of time, effort and money.

If you are enjoying building up your business then stick with that. You can always go to uni at a later date if you fancy it.

I did exactly that. I had a career. Then I had my children. Then I went to uni as a mature student when I was 40. I chose a course - art and design - purely for interest sake. It had nothing to do with my career aspirations.

Money - great news on the house sale - was wondering how you were getting on.

Back to berbastrike - and your dilemna. If your £100k is your total savings and then your £3200 is your sideline business, then I can't see any real issues with putting the bulk of your capital into buying a home. If you can negotiate a good price and come in under the £100K with about £2k spare for a contingency fund then so much the better.

When I bought my first house I had a tiny contingency fund which I thought would be enough to tide me over. I then had to use up my small fund to install a damp course and then pay for replastering.

I lived for 3 months in one room - my bedroom. No problem. Money was tight for the first year.

On paper my decision to pay a house at that time looked like financial suicide (it was 1976 and interest rates were rocketing). I managed just fine. I worked on the house steadily, restoring and renovating and the bringing both the house and the garden back to life. Sold it three years later for more than double what I had paid for it.

It was the best financial decision I ever made.

A year or so of very frugal living paid dividends.

berba your caution does you credit - hardly surprising your business has done well. Your business might tail off, then again it might just continue to blossom.

That's the thing with being self employed. There are no guarantees, nothing is written in stone. My OH and I have both run our own companies. As we always used to say

"When you run your own business it's feast or famine".

As soon as you can try and salt a little away again for any lean times that may come your way.

You will be mortgage free - you should easily manage on £3200 for 1 year if you have to. You seem to have your head screwed on the right way round. I reckon you'll do just fine.

martinsurrey

BitterAndTwisted wrote: »

If the last couple of winters are anything to go by the OP's estimates for gas and electricity are a tad over-optimistic.

In last rented house (2 bed terrace) while we were looking for the right house to buy me and the other half spent £460 in 12 months on gas and electicity, and that was for 2 people, we did work full time and have an active social life so the house was only occupied for a portion of the day (but I guess the OP would be similar).

fionajbanana

Band A properties are 1-2 bed flats and 1 bed homes

A two bed property is going to be band B or C and that will be £120-160 per month, plus you will get 25% discount for living alone.

My friend lives alone in a 2 bed semi and her gas and leccy bills are £650 a year. This is on a 1970s property. If its older like high ceilings etc, it would be more due to poorer insulation, larger windows and higher ceilings.

Cycrow

fionajbanana wrote: »

Band A properties are 1-2 bed flats and 1 bed homes

A two bed property is going to be band B or C and that will be £120-160 per month, plus you will get 25% discount for living alone.

My friend lives alone in a 2 bed semi and her gas and leccy bills are £650 a year. This is on a 1970s property. If its older like high ceilings etc, it would be more due to poorer insulation, larger windows and higher ceilings.

it does depend on location
i live in a 1 bed flat and im in Band C
even studio apartments come under Band C in my area

pawsies

berbastrike wrote: »

what supplier, I like the sound of them.

Your electric is too high, I reckon I could it to £100 per year (for me anyway)

Ecotricity