Need 50K desperately

controversy

Hi Baggie. If your wifes math is strong up to Pre Calculus she could get a online maths tutor job. Its paid at international rates but it could allow her to bring in a extra 15k to 20k per anum.

http://www.tutorhunt.com/?adsource=goog&adnetwork=Search&adkw=maths%20tutor%20job&adcopy=10962221344&adsite=&gclid=Cj0KEQiAts-kBRCbgrXc1rnXw7MBEiQAnFqTdkKxqNuVLFWsK6YytPbY0PI8saBrNT35Em4lhXv9oisaAgqJ8P8HAQ

edinburgher

I agree that £22k is not enough to raise a family of 5 on, but this is a load of nonsense:

£22k is barely enough for a single person to rent a room in a shared house.

I don't see what the problem is, we were a family of 7 in a 3 bedroom semi and had a happy and healthy childhood despite the odd squabble due to the close quarters.

greensalad

What? You "need" £50k, are you serious?

You have a home that you own (in part). You're lucky. Why do you "need" a bigger home and why can't you save for it like everyone else?

baggie29

Thanks for all your replies. Nobody seems to have picked up on the fact that i am self-employed and my income is "flexible". This gives us a massive tax incentive to keep myself as the primary breadwinner. For example this week i have earned in excess of £1000. This is an exceptional week however. My standard week is between 400 and 500 per week.We also receive tax credits of around 180 per week.

Today I have come up with an alternative solution. Rent our property out for between 550 and 600 per month. Rent a bigger property for between 750 and 850 per month until my wife gets a permanent teaching position. Then we can look to get the bigger mortgage that we require.

Any thoughts on this idea please guys?

baggie29

edinburgher wrote: »

I agree that £22k is not enough to raise a family of 5 on, but this is a load of nonsense:



I don't see what the problem is, we were a family of 7 in a 3 bedroom semi and had a happy and healthy childhood despite the odd squabble due to the close quarters.

Agreed - we get by very well on what i earn now plus our tax credits. We don't get a "load of benefits" as one poster suggested - only tax credits which we are entirely entitled to. based on last years earnings.

Jhoney_2

baggie29 wrote: »

Thanks for all your replies. Nobody seems to have picked up on the fact that i am self-employed and my income is "flexible". This gives us a massive tax incentive to keep myself as the primary breadwinner. For example this week i have earned in excess of £1000. This is an exceptional week however. My standard week is between 400 and 500 per week.We also receive tax credits of around 180 per week.

Today I have come up with an alternative solution. Rent our property out for between 550 and 600 per month. Rent a bigger property for between 750 and 850 per month until my wife gets a permanent teaching position. Then we can look to get the bigger mortgage that we require.

Any thoughts on this idea please guys?

Yes, I think that the flexibility of your earnings is being viewed differently alongside your wife's current employment status and the affordability/dependent ratios now used. E.g what if you only earned £200 a week? and you currently have 4 financial dependants

Can you afford to potentially pay 2 mortgages in a rental gap or rent not being paid by tenant? Can't you wait until Sept 2015?

The whole idea of the options you appear to be considering (in addition to your title and on the back of a large loan), suggests that not giving you a mortgage would be very good idea indeed.

Whatever you choose, I hope it works out for your family.

MaxTheCat

baggie29 wrote: »

My standard week is between 400 and 500 per week.We also receive tax credits of around 180 per week.

You shouldn't be allowed to buy property if you are on benefits. I certainly object to having paid in excess of £50k in tax this year when it's used against me helping people who frankly are life's losers to buy beyond their means thereby increasing prices for those that make it on their own.

mik82

baggie29 wrote: »

Today I have come up with an alternative solution. Rent our property out for between 550 and 600 per month. Rent a bigger property for between 750 and 850 per month until my wife gets a permanent teaching position. Then we can look to get the bigger mortgage that we require.

Any thoughts on this idea please guys?

What about the tax on the rental income? What if you have a void? If there was a void or your tenant stopped paying rent then you'd need to cover the BTL mortgage and your own rent. Certainly BTL lenders are not as favourable regarding missed payments and you'd quite quickly end up with your house repossessed.


There's so much downside risk here!

michelle2008

baggie29 wrote: »

Agreed - we get by very well on what i earn now plus our tax credits. We don't get a "load of benefits" as one poster suggested - only tax credits which we are entirely entitled to. based on last years earnings.

Over £9k a year in benefits does change the picture slightly. I agree the renting option sound more sensible - if the higher rent becomes a strain - or your circumstances change - you can move back to you own house.

Just have a cushion in case you have a few months with no rental income

Thrugelmir

baggie29 wrote: »

Nobody seems to have picked up on the fact that i am self-employed and my income is "flexible".

What matters is though is your earnings are over a period such as 52 weeks. Then all the ups and downs get smoothed out. Allowing for dips in work, bad debts, holidays, sickness etc.