Diary of a home owner wannabe (my 6 year journey)

misscousinitt

Hi there and welcome to the boards.

Good luck with your challenge. I will be reading with interest.

MCI

Prothet_of_Doom

I'm going to scream. You have £100K ? And you think you'll need £250K ?

But house prices are starting to rise, and you are paying rent.

So the interest on £150K will be what ? £6000? What is your Rent ?

This time next year you will need £260K (or maybe you won't) and the year after £270K ? (Or maybe not)

It would seem to me that you are being stupid (no offence meant)

Buy the house, over pay the mortgage. You have the deposit.

That said I also look at that £100K and think "2 deposits on 2 buy to lets which would yeild a profit of £XXXX per year which is more than the 2% on your savings, which means you could save up £150K quicker.....

Basically you are not making the £100K work hard enough.

megela

pennyforthepot wrote: »

I am working backwards in that I want to be a mortgage free wannabe but without having the mortgage in the first place (due to our circumstances a mortgage is not viable at the moment).

Until yesterday I had never posted let alone set up a new thread but after looking at the different forums I decided that the most appropriate place for me was the savings and investment thread. Hmmm - think I just proved myself wrong :eek:

Prothet_of_Doom wrote: »

Buy the house, over pay the mortgage. You have the deposit.

.

OP has already stated she can't get a mortgage.

Welcome Pennyforthepot.

pennyforthepot

Prothet_of_Doom wrote: »

I'm going to scream. You have £100K ? And you think you'll need £250K ?

But house prices are starting to rise, and you are paying rent.

So the interest on £150K will be what ? £6000? What is your Rent ?

This time next year you will need £260K (or maybe you won't) and the year after £270K ? (Or maybe not)

It would seem to me that you are being stupid (no offence meant)

Buy the house, over pay the mortgage. You have the deposit.

That said I also look at that £100K and think "2 deposits on 2 buy to lets which would yeild a profit of £XXXX per year which is more than the 2% on your savings, which means you could save up £150K quicker.....

Basically you are not making the £100K work hard enough.

I totally understand where you are coming from but my circumstances are far from straight forward.

A brief summary for you:

To buy this house or one similar where I live would cost approx £2 million :eek: - in my dreams (the reasons for living in such an expensive area are, again, complex, but I won't go into that).

The rent in this area is very high £3000 per month is the amount I pay (and that is about £2000 per month lower than you would normally have to pay for here). This is offset by the money from the sale of my house (two years ago) which is working very hard in an investment fund and is totally separate to the £96,000 I have saved to date. I can't use the money in the fund to buy a btl as I am using it to pay for this rent (and I would never get that sort of monthly return on a rental income), I am also currently getting an 11% return on that fund. I am paying as much of my rent out of my cash savings thus limiting the amount I need to draw down from my fund and so currently obtaining an 11% return on a part of the £96,000. If I wanted to get a btl I would have to pay the full amount as I cannot get a mortgage which is why I haven't done it so far. Complicated I know. I have looked into the financial options of what is best for my money and for me, and have come to the decision that for me, at the moment, this is the best way to reach my goal but I do regularly re-assess my financial situation.

Things are a lot more complicated than that summary but that is another story :rotfl:

I hope that answers your question Propthet of Doom

PennyforthePot

Muser1

Fab new thread! Welcome and good luck can't wait to read more.

Muser. Xx

pennyforthepot

Muser1 wrote: »

Fab new thread! Welcome and good luck can't wait to read more.

Muser. Xx

thanks Muser, I can assure you there will be lots more :rotfl:

Pennyforthepot x

gallygirl

:wave:Welcome :hello:.

Crikey - sounds like a lot of complicated history & finances there (she says, rubbing her hands with glee, pulling up a chair and pouring a cuppa ). I do sort of get where Prophet of Doom is coming from - a lot of people just have tunnel vision and don't explore options - but you clearly have and know what is right for you :T. And we get the bonus of a new chum who likes smileys :j:j:j.

20p roadkill is a great amount for a Tilly Tidy so I hope you've overpaid it .

One note of caution though - it's not the done thing to take stuff straight to the charity shop. It's really supposed to be put in an ebay pile for a good few weeks/months and then go on a free listings weekend at least 6 or 7 times before it's suitable for a charity shop. If you have to pack it up to move house half way through you get bonus points .

Looking forward to lots more to come .

GG

pennyforthepot

Morning all

Progress is being made on the decluttering front - helped by the fact that all three kids are away on holiday so there is no one to pull things back out once I've put them in my decluttering pile.

I managed to do the lounge yesterday but it still needs a really good de-cobwebbing, the fireplace needs to be cleaned out and I am going to have to get some filler for all the holes that are in the walls from the pictures we put up.

I learnt an important lesson yesterday on how not to declutter.
Do not chuck all the items that you want to get rid of in the spare room:
1. you spend half a day tidying up the clutter so it looks neat
2. you spend half a day re-sorting through the clutter and putting it back from where it originally came from

I have so much to do that I don't know where to start. I need to write a list - the upside of which is that it will create calmness and structure, the downside of which is that it will create panic when I see in black and white how much I have to do!

So this week I have decluttered and deep cleaned the following rooms: DSS2, DS,DD, our room, the playroom, lounge,the cupboard under the stairs and the airing cupboard - how many towels:eek: - that leaves the spare room (currently occupied by DBIL - though he's never really there - its a dumping ground for his stuff), the study (full of DH stuff - he's a big hoarder and also works from there), the kitchen, the two garden sheds, the loft, bathrooms and the double garage (which again is full of DH stuff and also a dumping ground for just about everything) - that lot should keep me busy till the kids get back.

Money:
My month starts on the 20th when my money comes in so yesterday I reconcilled the accounts - checked that all the DDs had come out and moved money to the relevant budget accounts. I also checked the C/C balances as I try and put all monthly expenses on those in order to get the cash back and Mr T vouchers. This means that I know how much money will come out of this month because I am paying for last months spend. It also means that I pretty much know how much I will have in savings for the end of the month, unless I have unexpected spends - which I typically do:mad:

I am quite well practiced at budgeting and I find it as the key to successful savings, although it is time consuming and you have to be very organised to keep on top of your spend and have a love of spreadsheets. So my budgets for the month are as follows:

£400 - food, toiletries and household (struggling to bring this down)
£180 - petrol. this is really tight and I don't include what DH puts in
£50 - me
£50 - school lunches (DSS2)
£50 - miscellaneous (stamps, friends bday cards, bit and bobs)
£150 - contingency fund (always used up:eek:)
£160 - kids allowances. The kids have to pay for anything they want to do - going out with friends, buying games etc and also they pay for additional clothes (other than the essentials that I buy). I find this helps them to understand how to save up for something and budget and think twice before buying it.

I then allocate money into budget accounts to cover costs that occur over the year.

£600 - birthdays, christmas and holidays
£300 - annual costs - any cost associated with the two cars, house insurance and TV license
£250 - kids (this relates to anything to do with school, any additional activities they do, friends bdays and essential clothes)

This really works for me as most of my spends are budgeted for over the year, although saying that this last month was very expensive as we had my sisters weddng, hen night, stag night and friends 25th wedding anniversary - all of which were at the opposite side of the country and involved hotels:eek: (well worth it though). So my savings for the end of this month (19th September for me) are going to be the lowest this year at around £500.

Right - must stop drivelling and start working. I achieved all my goals yesterday and a lowish spend day at £9.68. Today I need to:

Ring alarm company to arrange them to come and fix the wires that we pulled out the alarm when it went of suddenly in the middle of the night (drunkenly) and see if the quote they have given us is £45 to have it fixed or the more scarily £450 :eek:(can't read the handwriting)
Finish cleaning the lounge and start the bathrooms
Do a £50 Mr T shop - 5p off a litre of petrol
Pay the extortionate admin fees that are being charged by the letting agent.

Have a great MS day everyone

Pennyforthepot x

pennyforthepot

gallygirl wrote: »

:wave:Welcome :hello:.

One note of caution though - it's not the done thing to take stuff straight to the charity shop. It's really supposed to be put in an ebay pile for a good few weeks/months and then go on a free listings weekend at least 6 or 7 times before it's suitable for a charity shop. If you have to pack it up to move house half way through you get bonus points .

Looking forward to lots more to come .

GG

Words of wisdom Gallygirl - eb@y is the way to go - unfortunately I can only post 10 items a month at the moment (have filled that max this month) and I suspect that the clutter would end up merging back into the kids wardrobe:( DH has mentioned getting a pro account so need to look into that

PFTP x

tootoo

hello and welcome