my bank account will be empty after I paid my 10% deposit

kuratowski

This thread is an interesting illustration of people's different risk appetites.  When I was a FTB, I kept £10k of my savings back as a safety net - and am glad I did because all those things really did happen in my first year 😒

hazyjo

Had around £10k or so after my last move which soon went. Have never had money in the bank before in all my moves. Maybe a grand or two max, but usually naff all.

NewShadow

kuratowski said:

This thread is an interesting illustration of people's different risk appetites.  When I was a FTB, I kept £10k of my savings back as a safety net - and am glad I did because all those things really did happen in my first year 😒

I'm comfortable my income and the amount I have earmarked for non-essential electrical work gives me enough freedom to go all in on my deposit that because I value the 25% equity I'm buying more than money sitting in an account 'just in case' - and if the recent storms haven't taken the roof off then it's unlikely they'll be anything THAT urgent until winter rolls around... as you say - there's no right answer  

putopao

Thank you all for your quick feedback. 

MovingForwards

It's taken me 3.5 years to save my deposit and associated fees, when I move next month there will be about £1k left in my other savings pots.

It would be nice to have more, it's not realistic for many of us to have £10k spare. All we can do is save after moving to get some money behind us.

The white goods are included in my new kitchen and I'm currently renting an unfurnished flat, which I filled with nice things, to my taste, from BHF. Even if I only had the white goods and rented a furnished place, I wouldn't be concerned as I could buy a few key items and get BHF to deliver them.

OP, don't fret, you will make your place a home, main thing is you have got it!

FtbDreaming

Ill be back to almost £0 when I pay all the fees etc.... however ill be £140 a month better off straight away as the mortgage is lower then the rent. I am lucky enough to already live in the house and everything is mine so i just need to sit tight for a few months whilst I build up a few ££££ for the renovation stuff I want to do. 

People who have £10,000 backup! Well done to you but thats unattainable to a lot of us ftb with other commitments such as young children etc.  And just an average paying job! 

Sachs

kuratowski said:

This thread is an interesting illustration of people's different risk appetites.  When I was a FTB, I kept £10k of my savings back as a safety net - and am glad I did because all those things really did happen in my first year 😒

I think its more about how different people's lives are economically.
Its like me saying - "I can't believe all these people who buy second hand cars, I only buy brand new top of the range cars so they have the latest and best safety features."
Is that because I have a lower risk appetite than Joe Bloggs who buys a 2012 Skoda Fabia or is because I am substantially richer than the average person?

NewShadow

Sachs said:

kuratowski said:

This thread is an interesting illustration of people's different risk appetites.  When I was a FTB, I kept £10k of my savings back as a safety net - and am glad I did because all those things really did happen in my first year 😒

I think its more about how different people's lives are economically.
Its like me saying - "I can't believe all these people who buy second hand cars, I only buy brand new top of the range cars so they have the latest and best safety features."
Is that because I have a lower risk appetite than Joe Bloggs who buys a 2012 Skoda Fabia or is because I am substantially richer than the average person?

I was working it out earlier... based on my current financials - I could save another 10k... 

It would take me roughly 16 months, cost me around £9,200 in rent, and represent a further 7.7% equity share, so I'd still be tempted to add it to the deposit rather than save it as an emergency fund - assuming the house I'd buy in July 2021 would be the same price as the one I'm looking to buy in April 2020. 

Alternatively, I can buy now - with in the region of £4k earmarked for non-essential work which can be retasked if needed, and in that same 16 months save/invest an additional roughly £12.8k on improvements to the property, while paying off around £4k of the mortgage capital... 

I'm sure to some that seems like a tough call...

annetheman

NewShadow said:

Sachs said:

kuratowski said:

This thread is an interesting illustration of people's different risk appetites.  When I was a FTB, I kept £10k of my savings back as a safety net - and am glad I did because all those things really did happen in my first year 😒

I think its more about how different people's lives are economically.
Its like me saying - "I can't believe all these people who buy second hand cars, I only buy brand new top of the range cars so they have the latest and best safety features."
Is that because I have a lower risk appetite than Joe Bloggs who buys a 2012 Skoda Fabia or is because I am substantially richer than the average person?

I was working it out earlier... based on my current financials - I could save another 10k... 

It would take me roughly 16 months, cost me around £9,200 in rent, and represent a further 7.7% equity share, so I'd still be tempted to add it to the deposit rather than save it as an emergency fund - assuming the house I'd buy in July 2021 would be the same price as the one I'm looking to buy in April 2020. 

Alternatively, I can buy now - with in the region of £4k earmarked for non-essential work which can be retasked if needed, and in that same 16 months save/invest an additional roughly £12.8k on improvements to the property, while paying off around £4k of the mortgage capital... 

I'm sure to some that seems like a tough call...

Interesting when you actually calculate this! I have just done the same and for me, it's a no-brainer. I've spent more than £40,000 on rent in the last 4 years - I'd rather deplete my immediate resources, buy now and be poor for a month or two than wait another 6-12 months to save "maybe money" + throw more rent money to the wind.

I hope it works out for you!

John_

kuratowski said:

Agreed with the above, what happens when as soon as you move in, you find the oven doesn't work, boiler breaks down and the kitchen sink is leaking?  You'll need to pay for it all somehow.

Camping stove, pullover, and a tube of sealant.

I’d not want to cut it that close either, but it’s not totally crazy to end up close to zero for a couple of weeks while you wait for your next pay to arrive.

We bought the current house before selling the place we were in, which was not what we’d planned. This meant borrowing a lot of extra money, finding a large extra deposit, and timing completion for just after pay day. It took me down to pretty much zero, which I wasn’t ecstatic about, but it let us get into the house that we wanted, and if disaster had struck I could have sold one of our cars to cover the immediate issue.