Countdown from £28k...

vixx_123

enthusiasticsaver said:

A new soa sounds like that might be the way to go. My nephew works in the city and he is buying a brand new one bed flat for £300k in Purley, South London. I know that may not be possible immediately for you but I do wonder if going for somewhere in zone 3/4 will give you more for your money. 

I used to rent near Purley! Most of our friends have moved away as it's just too expensive to buy and those that have remained have had deposits gifted due to large equity in parents' houses or get stuck renting.

enthusiasticsaver

vixx_123 said:

enthusiasticsaver said:

A new soa sounds like that might be the way to go. My nephew works in the city and he is buying a brand new one bed flat for £300k in Purley, South London. I know that may not be possible immediately for you but I do wonder if going for somewhere in zone 3/4 will give you more for your money. 

I used to rent near Purley! Most of our friends have moved away as it's just too expensive to buy and those that have remained have had deposits gifted due to large equity in parents' houses or get stuck renting.

Yes I know the feeling.  It has always been like that though.  We moved away more than 30 years ago because of the ridiculous cost of housing in the GLC area.  Whyteleafe has two stations and it is easy to get into central London from there and lots of property around the £300k mark - £350k but mainly flats or starter homes. My brother has a 2 bed terraced house there which is tiny but worth near enough the same as our 4 bed large detached in Cornwall. 

ryanm8655

Thanks for the replies all.

Went out for dinner tonight and treated the family, just over a £130 but really nice to get out, first meal out I've had in god knows how long. Really good food and had a couple of beers as well. So full now though...They didn't take Amex so had to use my current account but that's fine. I've got the cash anyway and just comes off the December credit card bill.

On the rent front, you're all completely right, something does need to give, either the rental budget or the going out. I have considered moving further out but honestly, it was no cheaper. I looked at places like hammersmith/fulham etc. but was the same or more expensive than London Bridge. Somewhere like Kingston would be cheaper but the commute would be a pita (I lived there briefly previously and it drove me nuts - 40 minutes to waterloo then the additional to get to the office. St Albans is stunning, the sort of place I'd live if I had a partner but not as a single bloke, it's not very cheap either ha, don't think I'd save anything with the train fare. My travel within London is free, which is another factor, saving a couple of grand a year on tube fare. So once you've factored in travel costs there is no saving living outside of London. The other complication is I have access requirements (need a lift or ground floor place - owing to an accident I had in my late teens), which limits choice. I also hate commuting, an easy commute is really important to me and being able to stroll home after a night out saves a fortune on cabs. One reason I'm keen on London Bridge is that it is so well connected. I'd prefer somewhere like Clapham in a lot of ways (leafy but has good bars and restaurants, nice feel to it) but the commute to canary wharf from there is a nightmare and I'm not a fan of east London. London Bridge is also pretty good value for how central it is and prices are low at the moment (further out doesn't seem to have been impacted so much) so want to take advantage. When I do buy it won't be in London Bridge, unless I shack up with someone rich

At the moment 1/3 of salary on rent isn't realistic I don't think unless I moved to zone 4 or further and even then it'd be about picking the right area. I actually find further in to be better value overall. But 1600 is too much (45% ish). If I can get it to 40% I'd be happy, 35% fantastic but I think I'd rather compromise in other areas than move further out for a cheaper flat to be honest. At this stage anyway.

Will keep an open mind. There have been niceish places up for the £1350 mark and you always haggle down in London. Have seen a few more places while browsing this evening. Saw an amazing place, perfect location (literally next to borough market and the river), nicely furnished and finished flat for a bit less than the warehouse place (a better location too marginally), plus includes heating and hot water in the rent.. Would never get a place like this for this price before COVID: https://www.openrent.co.uk/property-to-rent/london/1-bed-flat-evans-granary-apartments-se1/920351

Also seen a few other places a bit further from the station for a little less and would hope to knock atleast £100 off:

https://www.acorngroup.co.uk/property-lettings/flat-to-rent-in-long-lane-london-bridge-se1/49181 (£1475 with water bills inc.)

https://www.acorngroup.co.uk/property-lettings/flat-to-rent-in-tanner-street-london-bridge-se1/50129 (£1517 but would rather pay the extra for the other place)

https://www.rightmove.co.uk/property-to-rent/property-99959951.html (£1473)

https://www.rightmove.co.uk/property-to-rent/property-73641285.html (£1495 but lots in this block for £1400 or a little less)

If I can get a nice place around London Bridge for £1400 I'd be happy.

Have just done a quick SOA below - does anything look particularly off? Maybe food might be £50 higher but I'm not the sort to be buying organic meat from a fancy butchers? I cut my own hair (follically challenged). I'd say I spend less than £50 on clothes a month on average but seems reasonable. Council tax is an estimate but about what I paid in Southwark previously (though I'd get single occupancy discount now). £40 travel based on train home once a month.  According to this I'd have more than £600 spare so should be able to put away £500/month? Does show that £1500+ is going to endanger that though. £1450 with some bills included would work out similar. Is £100 high on gas and electric for one person? I can't remember what I used to pay when sharing. Think it was less than that.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 3691.87
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3691.87[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1400
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 15
Satellite/Cable TV...................... 10
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 800
Holiday................................. 150
Emergency fund.......................... 100[b]
Total monthly expenses.................. 3070[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR[b]
Total unsecured debts..........0.........0.........-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,691.87
Expenses (including HP & secured debts). 3,070
Available for debt repayments........... 621.87
Monthly UNsecured debt repayments....... 0[b]
Amount left after debt repayments....... 621.87[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0[b]
Net Assets.............................. 0[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

dawnybabes

How much extra would a 2 bed be ? Could you sublet a bedroom ? 

ryanm8655

dawnybabes said:

How much extra would a 2 bed be ? Could you sublet a bedroom ? 

Annoyingly 2 beds aren't that much more. Subletting wouldn't be allowed in the contract...ideal would be getting a 2 bed with a mate but none are looking.

Previously lived with a mate around London Bridge, nice flat (an old new build as I like to call them - probably about 10-15 years old) and we were paying £1900 between us, could probably get that place for £1600/1700 right now.

I had a look at flatshares but there isn't a lot around and people are just not letting rooms rather than letting them go cheaply, I can see why. But I really just want the freedom of my own place. If I ever flatshare again it will be with a goal in mind, e.g. when I'm close to having a deposit and want to hit the saving hard. If I don't live centrally now I'll probably never be able to afford to do it again as will have mortgages etc. in mind. I'm likely never going to be loaded enough to get a mortgage on a flat near London Bridge Station anytime soon. And flats are never going to be better value imo.

alt80

I’d forgotten restaurants exist mate being tier 3 northern scum haha.

Tbh I’d pay the extra for that warehouse flat if I was in your position - rest are doing nothing for me but as you know property is my thing. Though my advice not worth listening to; when uni mates were all getting London grad jobs I stayed in Notts to buy a flat FML almost makes me look sensible. Renting life makes me anxious for you mate tbh and I’m struggling to see where your deposit for a decent London flat is coming from on £500/m saving. Not gonna lie feel like I shouldn’t be saying this stuff to you as you’ve just got debt free should be celebrating but think it’s important for you to get on the ladder (maybe just my skewed perceptions on life and obsession with property ownership).

I’d say elec/ gas is high if you’re looking at a modern build/ conversion tbh. Internet a bit low - more like £25-30 for phone line / broadband. Groceries maybe a bit low but if you’re spending £800 on entertainment possibly offset with the meals out.

ryanm8655

alt80 said:

I’d forgotten restaurants exist mate being tier 3 northern scum haha.

Tbh I’d pay the extra for that warehouse flat if I was in your position - rest are doing nothing for me but as you know property is my thing. Though my advice not worth listening to; when uni mates were all getting London grad jobs I stayed in Notts to buy a flat FML almost makes me look sensible. Renting life makes me anxious for you mate tbh and I’m struggling to see where your deposit for a decent London flat is coming from on £500/m saving. Not gonna lie feel like I shouldn’t be saying this stuff to you as you’ve just got debt free should be celebrating but think it’s important for you to get on the ladder (maybe just my skewed perceptions on life and obsession with property ownership).

I’d say elec/ gas is high if you’re looking at a modern build/ conversion tbh. Internet a bit low - more like £25-30 for phone line / broadband. Groceries maybe a bit low but if you’re spending £800 on entertainment possibly offset with the meals out.

Haha! 

That’s very sensible advice all round tbh. I’m basically conceding I won’t be getting on the ladder for at least 2 years but gains are going to be marginal if I get a cheaper place. Only way it’d be quicker is if I stay here My aim is essentially save a bit while enjoying life too. Then I’ll review at the 2 year point, when I should have about £14k saved (with LISA bonus) plus any extra I can put away (that SOA includes £100/month emergency fund that I wouldn’t actually need since I have no car and renting and also shows another £120 surplus). I am due a bit of inheritance that would put me up-to about £34k in 2 years time (morbid thought but I’d say quite likely in that time frame). If I’m with someone then that’d help a lot, though can’t assume that will happen. I’m happy to take it a bit slower and enjoy life in the meantime. Then at 2 years, depending on circumstances I could move into a share for 12 months and hit the saving hard and have £50k. Gives me sometime to get some stability in my life, figure out my career etc. Without being tied down by a mortgage. Don’t get me wrong I’d love to have a place now...but want my life back for a bit first rather than wasting my prime years scrimping.

Get you on the flat. I love character too. I got sent a video viewing of the newer flat though and it is plush/spacious. It’s also the views/location, literally right by the hustle and bustle of borough market/southbank. Never thought I’d be able to live there in a million years. Would offer £1400 and see what happens. Agree on the other places, they’re just practical and well located but you can get those sorts of places for a bit less than those I’ve linked to but unless a really great deal then they do nothing for me either ha.

This place looks quite cool (not quite as nice or well done as the other: https://www.fjlord.co.uk/renting/1-bedroom-apartment-to-rent/shad-thames-london-se1/fjl046200864/

This is cheap, could probably get for £1250 but then would I rather live in a nicer flat for 200 more...

https://www.rightmove.co.uk/properties/86833957#/

DayDreamerandGeneralWaster

Congratulations on being debt free! 

warby68

Now you've shared your thoughts a bit more, I can see where you're at.
You want to 'pick up' your city life and enjoy it for a while without the burden of debt and with your new spending persona hopefully keeping things under control. Buying is some way off and you are ready with Plan B (to live cheaply) when you want to start more serious saving.
Somehow I think you're going to do just fine and if not too personal or non pc, you will certainly be giving off 'good catch' vibes with a great mix of sensible and fun plus coming through some tough times, now you've also half an eye on future settling down if it happens.
The world should be your oyster now in many ways. So nice to see someone moving onto the next steps from what's usually a long term place on the debt free boards.
I love that SoA with absolutely zero debt!!

ryanm8655

Thanks for the replies all, @warby68 that’s exactly it...basically want to live a balanced life for a couple of years, save but in a balanced way.

This is a bit of a game changer...the warehouse place has been reduced: https://www.fjlord.co.uk/renting/1-bedroom-apartment-to-rent/shad-thames-london-se1/fjl046201155/

If I could get this for £1400 then happy days...

One thing on my SOA. Based on £30 per person twice a year (though could probably cut to £20/25) my budget for gifts would be £40 per month. Council tax has also gone up a bit plus the borough market place is band f...so would be £130/month. Will do another SOA but that should still at least allow £500/month saving (excluding £100/month emergency fund, which I can’t think what I’d need one for ).

Up early as stomach churning from the excessive food and couple of beers, getting old. Maybe I don’t need that entertainment budget after all