Getting on a bit and in need of savings help!

MrHovercraft

Hi,

I'm hoping someone can offer some advice to me because, I'm a bit unsure what's best to do.

2 years ago I got divorced and in the settlement I walked away with nothing, giving my wife all our savings, the house, the lot. This came about as I have shares in a company (currently struggling) which are on paper worth more than the value of the house and the savings put together. On top of that I am paying her monthly installments for the next 3 years. The chance of selling the shares is nil.

Now, since that point of starting again from scratch (not easy to do at 45!) I have been saving approx £500 each month with a view to once again buying a house (I am currently renting). However, I don't have a pension so I'm relying on savings and possible investment or property to see me through.

My question is, should I focus on saving until I have a large deposit and then look at property (possibly to let as an investment), or should I just jump in now and buy? Or are there other suggestions? I am living fairly frugally in order to save as hard as I can!

I have no other debt.

Any help is welcome!


Thanks...

xylophone

2 years ago I got divorced and in the settlement I walked away with nothing, giving my wife all our savings, the house, the lot. This came about as I have shares in a company (currently struggling) which are on paper worth more than the value of the house and the savings put together. On top of that I am paying her monthly installments for the next 3 years. The chance of selling the shares is nil.

Did you actually take legal advice?

MrHovercraft

Yes :-) But since I was the one that left I guess I felt guilty and didn't push it. the fact that the shares are worthless, effectively, is neither here nor there. It was a 50/50 split, she just got the liquid assets...

bigadaj

I think I'd look at the relative costs of renting currently against purchase and then seen how that compares and whether you are happy with the property you can buy. If so then buy now and save the money on the rent.

I presume the company you have shares in is private, is this one you own or are a director of? Just wonder about the opportunity of company contributions into pension which could be tax efficient, though this could conflict with a property purchase and getting a mortgage.

MrHovercraft

Thanks. the company is private and I'm not a director or anything. Renting is definitely cheaper than buying where I am.

spock007

I rarely post but had to for this. Mainly just to say how sorry I am to hear of your situation. No wonder some people never get married!

Forever

I'm not sure what to recommend but I just wanted to say that I am in a similar situation.

When I divorced, I got a little bit of money from the equity but nowhere near enough to buy anything else.

I currently live rent + food free in return for cooking and housework. I then work part time (plus study part time for a new career - hopefully) and I try to save a bit too with the idea of buying something in the future.

My ideas are to buy perhaps an over 50's flat when I reach the right age (these don't seem too expensive), or buy one of those part buy/part rent deals.

On the other hand, I sometimes wonder if I am better off working abroad for a few years so that I can save more money to buy something a bit nicer (as the cost of living is cheaper in some countries).

I am really trying to avoid having a mortgage though. I worry about my age and my continuing employability to be honest. I'm not sure if I am being silly here though.

Well these are the thoughts I have pondered over anyway.

Good luck!

Thrugelmir

MrHovercraft wrote: »

The chance of selling the shares is nil.

How on earth were the shares valued then?

MrHovercraft

The shares we valued by an accountant at a multiple of revenue I think, but that was 2 years ago and things have changed since then and not for the better.

Thanks @forever. I'm more inclined than you I think to look at a mortgage again. I'm a little risk-averse now so the idea of getting a 1-bed flat and renting it out is attractive, especially since I have no pension. I'm quite prepared to live frugally for a few more years ;-)

My ultimate goal is to get a place in the country which I can do up (livin' the dream!) and I guess I just want to find the fastest route there.