Quit everything , and start again over 50?

another_casualty

I have a feeling, that there is a problem again with getting emails .
Last month, it was an issue with Vodafone .
Poxy building at the best of times .
London is more of s cesspit these days , than ever before .

lessonlearned

AC. I meant to say I do hope I didn't upset you yesterday. I hope I didn't go too far .....;)

However, I meant everything very kindly and I am concerned about how worried and stressed you are. It can't be good for you to get so worked up and to be having such poor sleep. I am concerned that you risk a flare up of your illness.

The sooner you exchange contracts the better and then at least that will be one less thing to worry about.

I hope you didn't take the "expensive tastes" remark the wrong way.

There is nothing intrinsically wrong with having expensive tastes ...... I have them too but you need to be able to manage your expectations and not let your millionaire lifestyle fantasies run away with you.;)

I am your typical "champagne tastes and lemonade budget" but without being conceited I know I can achieve a "champagne lifestyle" on my small budget because I have learned how to really s t r e e e e t c h those pennies and be creative.

Yes I got into £30k worth of debt but that was purely down to my husband's illness, not through general overspending and poor money management. Nothing to do with living beyond our means.

You said some of your friends are concerned that you might run out of money. Obviously I don't know you the way they do, but I have to say, that given some of the ideas you have expressed recently, I too am a little concerned that you might be overreaching yourself by spending so much of your budget on your onward purchase when you have not secured a job yet.

Given your health issues I really do think you would be better to set your sights a little lower and keep more of your capital back.

Or.......alternatively, rent for longer and hold off buying your next property until you have secured suitable employment.

It depends what you want but I would advocate caution. Don't spend too much of your capital just for the sake of a posh postal code. Don't get sucked into buying a flash apartment and going all "footballers wives" :rotfl:

I had a similar budget to you, roughly £250k but I have not spent that on one property.

Unlike you I also have a passive income which more than covers my day to day needs. I usually manage to save at least 40 per cent of my income each month. You do not have that luxury so you really do need to keep some capital back.

I have gifted my sons £50k each, reducing my capital to around £150k. My late husband and I wanted to help them get on the property ladder now whilst they were young and just starting out. No point making them wait and seeing them struggle, throwing money away on rent when we could give them a leg up.

That £150k will easily buy me a nice property here. I probably still won't spend right up to my budget though, even though I do have my passive income.

Unlike me You do not have to think about leaving an inheritence or helping your kids. You can of course do exactly as you please with your money, however I do think it might be better if you didn't blow most of it purely on putting a roof over your head. Don't you want to have some fun after all those years of debt, never being able to have a holiday or go out.

As others here have said .....would you not be better to reduce your house purchase budget to around £180k so you can keep at least £50k or so back as your emergency cushion/retirement fund.

You have said you will only have SRP and a couple of tiny private pensions so how will you be able to fund running a swanky apartment on such a tiny income. You will be paying a huge chunk of your retirement income on management fees and service charges.

I really don't think you have fully thought it through. You are allowing yourself to be dazzled by high end properties you can't really afford. If you must insist on living in only the best areas then at least go for a smaller property.

I know it might not sound very glamourous or exciting to forward Plan for retirement although your third act can indeed be very glamourous and exciting if you have enough money put by. :rotfl:

However, your retirement could be bleak if you are living in a property that takes all your money and leaves you nothing left to live on on or have fun with.

Think carefully before you leap.

another_casualty

Thanks LL you haven't upset me in the slightest . Infact , you have been a driving force for me .
As I say, I had to take a reduced offer , which screwed things up for me slightly. Then again, I'm making progress by moving .
£25k plus , was a huge drop , but hey - ho.

I would probably be best looking for a one bedroom .There would be service charges there also .
I don't know at the moment . Maybe it's best to treat the 6 months as holiday .
I'd rather live in a nice area, than bumping into Jeremy Kyle avenue .
Lots to think about .
The first thing I have to do , is quit job . After that , a long think

harz99

triple_choc_chip wrote: »

Repossession wouldn't be a threat as AC wouldn't have any secured debt or mortgage but unsecured debt and service charges etc. could become a problem if all the money is used up before he finds a part time job.

House sale £375,000.

minus mortgage, home loan and dmp - £113,500 = £261,500
(I've used the mortgage and loan figure from Nov '15 so should be lower now but using these gives some leeway.)

minus EA's commission, legal and removals to Poole - £10,000
minus 6 months rent and living costs - £10,000 = £241,500

minus legal fees and removals to 'forever home' - £2,500 = £239,000

(you may need to dip into that if you haven't found a job during the six months you are renting/living in your new home.

minus property purchase - say £189,000 = £50,000
minus stamp duty - £2000 = £48,000 to fund new furniture, redecoration, and ongoing living costs etc.

As mentioned above, if the secured debts have decreased since last November and creditors agree to settle outstanding dmp debts at a percentage, there should be more money left.

AC, following on from LLs post and using the figures from post 1461 slightly amended, IMHO that is where you should be aiming to be - a "surplus" of £50k.


I've done a rough budget below as to what I think you would spend a year living a simple lifestyle without service charges, some areas could be trimmed a little I guess, but only a little.


Council tax (allowing for 25% single rebate = 800.00
Water charges (average figure) = 750.00
Gas and electricity = 1000.00
Food/drink = 4000.00
Fares (assuming annual bus pass) = 1000.00
Incidentals (phone/internet/clothes etc.) = 550.00


Total £8100.00


At that rate of spend your £50k would last 6 to 6.5 years before it ran out.


This is why we are all urging caution with both price and leases.

enthusiasticsaver

I would agree with LL that if you restrict your budget to around £150k to buy a property you will have a very comfortable buffer financially should you find difficulty getting a job. There are a few 2 beds on Ashley Road which is near the Ashley cross shops you like and yes that looks to be a main road but is near everything. Should you want something quieter there are others and Canford heat and creek more both look nice and quiet and well within budget. If you are selling for 375k then an estimate of 10k costs for buying and selling and a further 5-10k for living expenses and rent for 6 months leaves you 355k. I think you said you have 105k debt including mortgage so that leaves you £250k. Maximum of 150k for a flat and you have £100k as a capital fund either to supplement earnings should you get a job or give you some breathing space while you get fit and healthy again.

enthusiasticsaver

Also I would say £25k is not a huge drop when selling somewhere at around £400k. My daughter has just accepted a drop of around 5% on her asking price of her house in the Midlands to get a cash buyer as she is moving to a new job in a different city so does not have luxury of time. Similarly she has offered 3% less than the asking price on the flat she wants in Bristol. There are reductions all over so that is not surprising you did not get asking price. I think it is a buyers market at the moment and you can try offering less on your future home. Asking prices are just that and unless immaculate or very desirable it is unusual to get full asking price.

gallygirl

lessonlearned wrote: »

AC. I meant to say I do hope I didn't upset you yesterday. I hope I didn't go too far .....;)

However, I meant everything very kindly and I am concerned about how worried and stressed you are. It can't be good for you to get so worked up and to be having such poor sleep. I am concerned that you risk a flare up of your illness.

The sooner you exchange contracts the better and then at least that will be one less thing to worry about.

I hope you didn't take the "expensive tastes" remark the wrong way.

There is nothing intrinsically wrong with having expensive tastes ...... I have them too but you need to be able to manage your expectations and not let your millionaire lifestyle fantasies run away with you.;)

I am your typical "champagne tastes and lemonade budget" but without being conceited I know I can achieve a "champagne lifestyle" on my small budget because I have learned how to really s t r e e e e t c h those pennies and be creative.

Yes I got into £30k worth of debt but that was purely down to my husband's illness, not through general overspending and poor money management. Nothing to do with living beyond our means.

You said some of your friends are concerned that you might run out of money. Obviously I don't know you the way they do, but I have to say, that given some of the ideas you have expressed recently, I too am a little concerned that you might be overreaching yourself by spending so much of your budget on your onward purchase when you have not secured a job yet.

Given your health issues I really do think you would be better to set your sights a little lower and keep more of your capital back.

Or.......alternatively, rent for longer and hold off buying your next property until you have secured suitable employment.

It depends what you want but I would advocate caution. Don't spend too much of your capital just for the sake of a posh postal code. Don't get sucked into buying a flash apartment and going all "footballers wives" :rotfl:

I had a similar budget to you, roughly £250k but I have not spent that on one property.

Unlike you I also have a passive income which more than covers my day to day needs. I usually manage to save at least 40 per cent of my income each month. You do not have that luxury so you really do need to keep some capital back.

I have gifted my sons £50k each, reducing my capital to around £150k. My late husband and I wanted to help them get on the property ladder now whilst they were young and just starting out. No point making them wait and seeing them struggle, throwing money away on rent when we could give them a leg up.

That £150k will easily buy me a nice property here. I probably still won't spend right up to my budget though, even though I do have my passive income.

Unlike me You do not have to think about leaving an inheritence or helping your kids. You can of course do exactly as you please with your money, however I do think it might be better if you didn't blow most of it purely on putting a roof over your head. Don't you want to have some fun after all those years of debt, never being able to have a holiday or go out.

As others here have said .....would you not be better to reduce your house purchase budget to around £180k so you can keep at least £50k or so back as your emergency cushion/retirement fund.

You have said you will only have SRP and a couple of tiny private pensions so how will you be able to fund running a swanky apartment on such a tiny income. You will be paying a huge chunk of your retirement income on management fees and service charges.

I really don't think you have fully thought it through. You are allowing yourself to be dazzled by high end properties you can't really afford. If you must insist on living in only the best areas then at least go for a smaller property.

I know it might not sound very glamourous or exciting to forward Plan for retirement although your third act can indeed be very glamourous and exciting if you have enough money put by. :rotfl:

However, your retirement could be bleak if you are living in a property that takes all your money and leaves you nothing left to live on on or have fun with.

Think carefully before you leap.

LL for Chancellor of the Exchequer.

And Prime Minister

And Minister of Good Sense

But hopefully not Minister of Funny Walks

lessonlearned

gallygirl wrote: »

LL for Chancellor of the Exchequer.

And Prime Minister

And Minister of Good Sense

But hopefully not Minister of Funny Walks

:rotfl::rotfl::rotfl:

Wow. High praise indeed. And there's me thinking I'd put my foot in it yesterday with my forthright opinions and Head Girl Little Miss Bossy Boots Act telling poor AC how to run his life.

(I bet he's so glad he doesnt have me for a wife).......:rotfl:

On second thoughts, maybe I should start a life coaching business.

On the subject of wasting money......

The crime prevention officer told me an interesting story this morning.

His daughter had to have surgery. Turns out she has a life threatening allergy to opiates. She spent 3 days in ICU.

What did the NHS do......send her to see a professor in a teaching hospital no less to see about her allergy. (the expense!!!!). The good professor just shook his head and said "why on Earth have they sent you to me, why would I want to try and experiment on you, trying out yet more opiates when we already know they will more than likely kill you next time"

Yep I think you are right, we do need a "Minister of Good Sense".

another_casualty

Thanks again everyone.
Now my head is overloaded. Looking at the last couple of posts, I'm more frightened than ever. I have seen one one bedroom in steep dene ,,I think.
That's us top floor one bed, at£1779,950 (£90 pm service charge).
Trying to find something for. £150k I think will be impossible.
I just don't know . I guess, I'll just move to parkstone to rent, and look very very hard . Failing that, just rent until I no longer can .
My head is tied in knots .

lessonlearned

I think that you will find something appropriate to your needs and budget, as long as you can keep an open mind and can be flexible.

Don't panic. You won't need to rent forever. No need for a knee jerk reaction. We are only highlighting some issues which we feel you need to consider before you make your purchase.

I personally feel that sometimes you have tried to run before you can walk. You wanted to rush into your next purchase, thankfully you have decided to rent for a while. I still think you are fretting too much about your "forever home" and that you would be best to mentally "shelve" your search, until you have actually moved down there and have chance to get a proper feel of the place.

Your difficulty so far has been your inability to think "outside the box". Lol. Hate that expression.......but it is actually rather apt.

At the moment you can't see the wood for the trees. However, I think once you have given up work and have had a little break you should be able to see things more clearly.

You really do need to just have some thinking time, so renting for a while will give you the breathing space you need.

After a few weeks you will be able to start looking around properly. At the moment you are focussed on a few streets you know. That will change, you will get to know other areas, perhaps there are other areas just as nice but perhaps a bit kinder to your bank balance.

Try not to think so much. Get a couple of nights sleep under your belt and you will feel a bit brighter.