Renovations and Repayments.

gallygirl

AlexLK wrote: »

Unfortunately, I'm not a good example of a MFW :rotfl:, I like collecting things, just don't ask gallygirl about my watch and pen collections, if I recall correctly, she was horrified when I wrote about them on my debt free diary.

Prices do seem to be going up at the moment. I'm fairly cautious about buying at the moment as there has been a classic car bubble before and it burst. Something is telling me this current shift is not going to be permanent but could last for another few years yet. There are new-comers to the "classic" market all the time, as we're all getting older, don't forget a car made in 1985 is now 30 years old!

The GT6 is a very special car to me, I've had it for almost 14 years now. The rest come and go but that one always seems to hang around.

There was a good programme on C4 last night about restoring & selling 'that' DB7 for a lot of money - find it on tinternet Alex, it looked good, I only saw the end. Won't give the game away and spoil the ending

Having sorted out my drawers (;)) I have found I too have a pen collection. Some even have a clicky bit at the end to make the nib go up and down and some have a little plastic hat to protect the nib :T.

edinburgher

Alex, may I ask a question about windows?

After our recent 'your house needs a full rewire' shocker, I'm trying to think what our worst case scenario is. Full rewire = re-plaster + re-decorate. Re-decorating will show up the grotty condition of our window sills and windows. I would consider new windows if we decide to stay put for a few years, but the sills would need to be addressed.

Is it easy enough to replace a window sill (i.e. the bit of wood at the bottom of the frame)? Several of ours are warped/split, I have no idea if they are load bearing etc....

AlexLK

gallygirl wrote: »

There was a good programme on C4 last night about restoring & selling 'that' DB7 for a lot of money - find it on tinternet Alex, it looked good, I only saw the end. Won't give the game away and spoil the ending

Having sorted out my drawers (;)) I have found I too have a pen collection. Some even have a clicky bit at the end to make the nib go up and down and some have a little plastic hat to protect the nib :T.

Thanks, gallygirl. I'll take a look at the programme once the pensioners have gone to bed tomorrow night.

Glad to hear you are enjoying your pen collection. You probably won't be pleased to hear that I've bought another one today, first one in a while though.

edinburgher wrote: »

Alex, may I ask a question about windows?

After our recent 'your house needs a full rewire' shocker, I'm trying to think what our worst case scenario is. Full rewire = re-plaster + re-decorate. Re-decorating will show up the grotty condition of our window sills and windows. I would consider new windows if we decide to stay put for a few years, but the sills would need to be addressed.

Is it easy enough to replace a window sill (i.e. the bit of wood at the bottom of the frame)? Several of ours are warped/split, I have no idea if they are load bearing etc....

I presume you're talking about the interior sill? It's not a particularly difficult job if you're a fairly competent DIY'er, though you do need to be careful when removing the existing wood as it's quite easy to damage the plasterwork around it. I recommend watching a few youtube walk-through videos, just be aware there are different qualities of work displayed on there.

If you want to replace them cheaply, in preparation for selling up, you can use MDF. However, if you plan to stay, replace with a hardwood - most people use oak but you can use cherry, maple, walnut etc.

edinburgher

Thanks for that, based on not staying long term, would probably go for MDF (for the same reason I know that wooden windows are vastly superior to PVC, but would still buy PVC if new windows are required).

AlexLK

If you're not intending to stay and nice windows won't add to the value of your property, I'd also replace with PVC. Mine are being done cheaply but with nice materials only because I'm DIY'ing, they'd be very expensive if being replaced by a professional.

Are you set on selling your property in a few years or would you be better switching the mortgage to a BTL and renting it out? The tenant would pay the remainder of the mortgage and you'd have the property to do what you liked with at the end.

AlexLK

Wednesday 22nd April, 2015.

Dear Diary,

I'm glad I've got the computer because yet again I can't sleep.

It seems like I'm the only person on MFW who has been stupid with money in the past and ended up not only in debt but with bad debt. Now, I'm burdened with so many regrets over how I should have ran my finances in the past and a want to at least be able to pay the mortgage on my current property without my parents help.

Unfortunately, I can feel myself beginning to slip into habits of old, buying things I don't need though I'm frustrated, I still don't seem to be able to stop myself. It was easier when I was paying debts because I knew I needed to rid myself of my old life but clearing the mortgage seems such a mammoth task compared.

Truth be told, I am struggling in business and the only reason I'm managing to save anything is because my wife has a well paying job which more than covers our living costs. I find it terribly frustrating that whilst I am good at making one-off high value, high profit deals, I seem incapable of turning a good profit every single month, like anyone who is actually decent at running a business can. There are also problems with my ex-business partner whom my business is still reliant upon and my parents have asked if I'd like to do something else because they clearly think I'm not cut out for this either.

In my attempts to think about strategies to actually work towards my goal, I'm having trouble understanding whether or not investing actually makes sense. From what I can tell, to double a given sum of money at 5% interest, it will take around 15 years to do so? Of course, by adding more money to the initial investment you will begin to earn more money but that means tying up even more cash. I just cannot see how this provides a decent enough profit to be worthwhile tying cash up at the moment.

I realise many on here think I'm a spoilt whinger. There are many days I do not think I deserve to one day have quite a lot of money passed to me, on others I'd like to think I could refuse it and make it for myself, even though I realise I'm not good enough to provide well for my own family and will inevitably live from proceeds of the hard work of my parents, ultimately rendering my attempts pointless.

Yours Faithfully,
Alex.

gallygirl

AlexLK wrote: »

I realise many on here think I'm a spoilt whinger. There are many days I do not think I deserve to one day have quite a lot of money passed to me, on others I'd like to think I could refuse it and make it for myself, even though I realise I'm not good enough to provide well for my own family and will inevitably live from proceeds of the hard work of my parents, ultimately rendering my attempts pointless.

Oh Alex you never did read The Millionaire Next Door did you? I'm afraid you're a classic example of why rich parents shouldn't give/leave their children money - directionless and lacking in motivation as your efforts seems so paltry in comparison.

Are you REALLY struggling in business or are you just perceiving it that way? What do last year's accounts show? How much cash/collateral do you have invested in it? Are those really the marks of a struggling business? I don't expect you to answer that on here - but please do sit down with a bit of paper, look at the answers and ask yourself if an acquaintance showed you those figures would you say they were failing?

edinburgher

Are you set on selling your property in a few years or would you be better switching the mortgage to a BTL and renting it out? The tenant would pay the remainder of the mortgage and you'd have the property to do what you liked with at the end.

I do not believe that the British love of BTL has been good for our society, let's leave it at that. Why should a tenant have to pay for my retirement just because I got there first with a bigger pot of cash?

It seems like I'm the only person on MFW who has been stupid with money in the past and ended up not only in debt but with bad debt.

Not at all. It took me 7-8 years to clear off all of my university debts and it delayed the purchase of my first home by several years as well.

Unfortunately, I can feel myself beginning to slip into habits of old, buying things I don't need though I'm frustrated, I still don't seem to be able to stop myself.

That sort of compulsive decision making is a common trait of depression. It's probably the reason why I very occasionally make absolutely daft wagers in the land of matched betting despite knowing that's not the way to make money. Ignoring the impulse 99% of the time works

I find it terribly frustrating that whilst I am good at making one-off high value, high profit deals, I seem incapable of turning a good profit every single month, like anyone who is actually decent at running a business can.

It strikes me that your only 'mistake' is treating it like a full-time business. Your scenario sounds ideal for a side business (i.e. you could consider getting a p-t job with an employer that fits around your most profitable hours for what you do now?)

I just cannot see how this provides a decent enough profit to be worthwhile tying cash up at the moment.

You think like this because your mentality is 'feast or famine'. You are used to quick wins, significant one time profits and you still have some reliance on your parents (and wife, but that is fine, she chose to marry you!) 5% is a solid return, your perceptions are doubtless skewed by BTL yields, which may be higher.

I think you are hard on yourself, but your expectations are unrealistic

I have had a really tough time at work over the last year, on two occasions I gave serious thought to walking out the door. One of the few things that kept me going was the fact that I am building wealth for my family incrementally through sensible savings and investments. Every month I stay is another ££££ in the pot and every ££££ in the pot eats away at my fears about my own perceived inadequacies and the risk of getting the boot if I am as bad as I think.

I can tell you to the month when I will be financially independent (God willing) - that doesn't sound so boring - does it?

That's not willy waving, my point is that steady but predictable profits directed purposefully brings more satisfaction than the occasional big win. I know, I work in an office surrounded by gamblers. In terms of your self esteem, I know that my efforts are a source of pride for my wife and parents, who have seen me morph from the worst spendthrift child to one of the more sensible ones!

AlexLK

Well, today I let my parents take my son out for the day as they seemed to think this would be "good for me". Not sure how being in my own company for the day surrounded by others having a good time is "good for me", all I've done is tidy my son's toys and consume a bottle of wine with lunch.

gallygirl wrote: »

Oh Alex you never did read The Millionaire Next Door did you? I'm afraid you're a classic example of why rich parents shouldn't give/leave their children money - directionless and lacking in motivation as your efforts seems so paltry in comparison.

Are you REALLY struggling in business or are you just perceiving it that way? What do last year's accounts show? How much cash/collateral do you have invested in it? Are those really the marks of a struggling business? I don't expect you to answer that on here - but please do sit down with a bit of paper, look at the answers and ask yourself if an acquaintance showed you those figures would you say they were failing?

I didn't in the end, no. At the moment I can barely get through what needs to be done in the day, don't really seem to be able to concentrate on reading anything. I used to really enjoy reading and learning new things but at the moment I'm seriously considering quitting the course I started in September and before now I've never considered dropping out of any academic course.

As for my parents, this is not their fault, it's mine.

Regarding the business, thank you for giving me some questions to think about. I won't be able to see the figures until next week now. I know there is still an overall profit being made but my ex-business partner is trying to cause a lot of trouble and will make it difficult for profits to carry on being made.

edinburgher wrote: »

I do not believe that the British love of BTL has been good for our society, let's leave it at that. Why should a tenant have to pay for my retirement just because I got there first with a bigger pot of cash?

I admire you standing by your morals, even though I think the BTL option could be better prospect in the long term for you as you would benefit from both a small income and the capital gain of the property plus any appreciation that may also accrue over time on your flat.

edinburgher wrote: »

Not at all. It took me 7-8 years to clear off all of my university debts and it delayed the purchase of my first home by several years as well.

And there was I thinking you were one of the born sensible sort on here.

edinburgher wrote: »

That sort of compulsive decision making is a common trait of depression. It's probably the reason why I very occasionally make absolutely daft wagers in the land of matched betting despite knowing that's not the way to make money. Ignoring the impulse 99% of the time works

I think you're right about much of the "cause" which fuels the buying and collecting. Before MSE I couldn't imagine parting with some of the things I have collected over the years and becoming a collector-dealer had not crossed my mind at all. Still don't understand how you can make money by gambling, I only lost a lot when I was young, foolish and out to "impress".

edinburgher wrote: »

It strikes me that your only 'mistake' is treating it like a full-time business. Your scenario sounds ideal for a side business (i.e. you could consider getting a p-t job with an employer that fits around your most profitable hours for what you do now?)

I should explain the business I'm talking about is not the antiques side but my "main" business. With current trends (I sell (new) furniture) I can't say I'm passionate about the business as whilst I do know what I sell is of good quality, almost none of it is to my taste. Customers expect me to enthuse about their decisions as they are often spending a lot of money.
Regarding the antiques side, I completely agree that it's not a full time business as to treat it as such would be very uncertain and involve putting in a lot of hours. I've recently considered going into teaching but whilst I think I would enjoy the work, the rewards aren't so great and would mean me becoming employed, which I don't think would suit as I have to look after my parents' affairs. The other problem with that is having to pass being physically and mentally fit to teach, I doubt I'd pass this due to my medical history.

edinburgher wrote: »

You think like this because your mentality is 'feast or famine'. You are used to quick wins, significant one time profits and you still have some reliance on your parents (and wife, but that is fine, she chose to marry you!) 5% is a solid return, your perceptions are doubtless skewed by BTL yields, which may be higher.

I think you are hard on yourself, but your expectations are unrealistic

Unfortunately, I cannot go down the BTL route yet and am considering putting my "quick wins" into more "sensible" investments until I can use the money to buy other property. My parents also think some money should be put into safe savings and investments. The original plan was to pay the mortgage on my house, sell it and move to my parents' house, then use the capital to put deposits on investment property. I'd like to think I would be able to pass 20 paid for properties to my son one day (parents have 12 already, so that's 8 to find).
At the moment it does seem unrealistic, I'll admit. However, I don't know what is realistic / a good idea e.g. it is pointless me saving money for retirement as this is already covered.

edinburgher wrote: »

I have had a really tough time at work over the last year, on two occasions I gave serious thought to walking out the door. One of the few things that kept me going was the fact that I am building wealth for my family incrementally through sensible savings and investments. Every month I stay is another ££££ in the pot and every ££££ in the pot eats away at my fears about my own perceived inadequacies and the risk of getting the boot if I am as bad as I think.

I can tell you to the month when I will be financially independent (God willing) - that doesn't sound so boring - does it?

That's not willy waving, my point is that steady but predictable profits directed purposefully brings more satisfaction than the occasional big win. I know, I work in an office surrounded by gamblers. In terms of your self esteem, I know that my efforts are a source of pride for my wife and parents, who have seen me morph from the worst spendthrift child to one of the more sensible ones!

You seem to be doing really very well and I can completely understand why you want to be financially independent. To do this by yourself is a wonderful achievement that I cannot comprehend but do have a lot of respect for.

edinburgher

I admire you standing by your morals, even though I think the BTL option could be better prospect in the long term for you as you would benefit from both a small income and the capital gain of the property plus any appreciation that may also accrue over time on your flat.

Each to their own, I don't like BTL, but I know that a lot of other people do. I suppose the main draw of more conventional investments like S&S is the fact that they are far more liquid. If I wanted to, I could sell the lot and have cash in about 3 days. Properties would just become a millstone.

I'd like to think I would be able to pass 20 paid for properties to my son one day (parents have 12 already, so that's 8 to find).

Seriously - why on earth would anyone *need* 20 properties? Perhaps the worst thing you can do for someone is to make it so that they never need to work a day in their life.

GG was on to something, read the Millionaire Next Door, even if you do so gradually