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First time buyer dreams.. can we do it?!
Comments
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You said your household income is £26k/yr.
Divide that by 12.
£2,270/mo.
Tax is going to be low. Let's call it take-home of £2000/mo - https://www.incometaxcalculator.org.uk suggests that's about right.
Actually, then there's the £5-10k of other income. So let's call it £300-600/mo after tax from that source.
£2,300-2,600/mo income.
£800/mo rent.
Looks like £1,500-1,800/mo for those other expenses to me.
Please, feel free to correct my misunderstanding with more appropriate figures.
£1900ish take home. I pay myself very little from self employment at the moment, it goes back into the business.
- 800 rent
- 250 bills
- food
- Petrol, car costs, transport
- phone bills
= not much!http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator
£180k mortgage. £853/mo repayments.
As i said, house prices have risen hugely here, his mortgage will be nowhere near £180k.So you're happy to own a property somewhere you don't want to live? Sounds like a shortcut to longer-term resentment and unhappiness to me.
Nope, just a way to get on the property ladder. It's not necessarily where i want to spend the rest of my life.0 -
username_user wrote: »I am employed and self employed. More hours travelling to employment = less hours to spend on self employment
Couldn't it instead mean less leisure time and less time on front of the telly, rather than less time on your self employment?
There are an awful lot of people in their 20s working 60+ hours a week. Ultimately I suppose there may be a decision as to how far you are prepared to sacrifice to get on the housing ladder sooner rather than later.0 -
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username_user wrote: ȣ1900ish take home. I pay myself very little from self employment at the moment, it goes back into the business.
So we can totally ignore that for the purposes of your mortgage, even if you had three years of accounts, since you are not getting £5-10k income, but nearly £0 income from it.
The three things you've glossed over there seem to be consuming £850+ per month.- 800 rent
- 250 bills
- food
- Petrol, car costs, transport
- phone bills
= not much!
Maybe, maybe not. That has no relevance to your situation, though.As i said, house prices have risen hugely here, his mortgage will be nowhere near £180k.
If he happens to be mortgage-free on it, should he rent it to you for a nominal amount?
If he remortgaged it to free equity elsewhere, should your rent increase?
A 100% repayment mortgage on that property would cost more than the rent you are paying.
If he is indeed sitting on healthy capital growth, but poor rental yield, that's an argument in favour of him selling the property, realising that profit, and investing elsewhere - not for reducing the rent...
And what if that ladder doesn't actually turn into an escalator magically? You've already said you're buying after a sustained period of price increase - will that stay? If it does, doesn't that just make the gap between rungs bigger?Nope, just a way to get on the property ladder. It's not necessarily where i want to spend the rest of my life.username_user wrote: »If we'd bought a property we wouldn't be trying to save a deposit.
No, you'll be saving to have a child. Or to make the next move up the ladder.And hopefully be working closer to home by the time we'd bought somewhere
Can't you make that job change now?0 -
It's actually really straightforward. Earn more and spend less.0
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Lioness_Twinkletoes wrote: »It's actually really straightforward. Earn more and spend less.
Yep thats the plan. Was just looking for some support and helpful input. May have come to the wrong place!0 -
username_user wrote: »Yep thats the plan.
Yet you seem reluctant to actually accept that you have the scope NOW.Was just looking for some support and helpful input. May have come to the wrong place!
We do support and helpful input here. You've got a thread full of it.
It may not be sugar-coated. But it is helpful, if you're willing to pause and think about it.
You have been given a list of ways in which you can reduce your outgoings. You seem to think that £850/mo for food, phone calls and transport is inevitable and unavoidable, for a start. You've come up with a list of reasons why you can't possibly reduce your rent by moving to the very same area you'd be moving to if/when you buy. Instead, you prefer to blame your landlord for having the temerity to charge a market rent for the area. Your other half's not saving anything... then it turns out you're not, either.
It's not impossible. It IS hard. You WILL need to make changes - and those changes are your hands. Cut back on the spending. Increase your deposit. Learn the difference between turnover and income in your self-employment, and figure how you can best turn one into the other. If you choose not to make those changes, then it won't affect our lives...0 -
What are the chances of the two of you moving in with your parents for 12 months?0
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Yet you seem reluctant to actually accept that you have the scope NOW.
It may not be sugar-coated. But it is helpful, if you're willing to pause and think about it.
You have been given a list of ways in which you can reduce your outgoings. You seem to think that £850/mo for food, phone calls and transport is inevitable and unavoidable, for a start. You've come up with a list of reasons why you can't possibly reduce your rent by moving to the very same area you'd be moving to if/when you buy. Instead, you prefer to blame your landlord for having the temerity to charge a market rent for the area. Your other half's not saving anything... then it turns out you're not, either.
It's not impossible. It IS hard. You WILL need to make changes - and those changes are your hands. Cut back on the spending. Increase your deposit. Learn the difference between turnover and income in your self-employment, and figure how you can best turn one into the other. If you choose not to make those changes, then it won't affect our lives...
Everything i say is being turned into me not wanting to do things! I can't magic money. We can't earn more until we find jobs that pay more and we are doing all we can with that. I never said we can't move to that area, i only said that the money we'd save would be reduced by increase in travel costs and loss of earnings.
It's not £850 for 'phone calls'. Compared to other people our age we do very little. We don't go on holiday, we don't go out every weekend or buy loads of clothes or have nice cars. We have to eat. My partners public transport costs to work are a large chunk of his remaining pay gone every month. After car insurance, tax, petrol, car maintenance and god forbid having a tiny scrap of a life, whatever is left gets saved. I have not once said either of us aren't saving, i have repeatedly said we aren't saving much. As in, we save what we have left but it would take ages to make a dent in what we need. We don't throw our money away on things we don't need as you are trying desperately hard to prove is the case.
I have also never 'blamed' the landlord! I have made the point that rent is expensive, which it is. I have never suggested he charge anything different, just replied to your point that the mortgage is more than the rent. Which is irrelevant anyway. But why would he deliberately be losing money? And why would the hundreds of other 2 bed flats around here be charging the same in rent of they are all losing out?
I'm aware of how my business works thanks.
I know it is hard. I know we need to make changes. Hence me coming here to get advice on what we need to do. I know it's possible, plenty of people manage it. Which is why i was hoping for some encouragement from those people!0 -
JimmyTheWig wrote: »What are the chances of the two of you moving in with your parents for 12 months?
Unfortunately perry much zero. He doesn't have parents. Mine have no room. There was a potential offer of a couple of rooms from a friend but we're not counting on that as its not very reliable!0
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