First Steps to Solvency

RelievedSheff

Having a 7 figure house isn't all its cracked up to be.

We have friends who have a 10 bedroom 7 figure listed hunting lodge for sale now. They are fed up with it and want to move on from it. It has been all consuming of their time and life while they have lived there.

It is a beautiful house but it is hard work.

JGB1955

If I was your FIL I would be FAR more impressed by knowing that you were mortgage free rather than owning a small percentage of a 7 figure house.  But then... I'm one of those boring 65 year olds who have excess pension income, been mortgage-free for 20 years, just gifted the children £100K each, classic car in the garage.... and... I sleep soundly at night.  I find your lifestyle exhausting... Good Luck!

getmore4less

alt80 said:

@getmore4less I was hoping to show her some houses I've seen on RM, not buying now I know but show her there's some hope beyond paying debt something for family rather than something for me element of me showing her I still want to drive forwards too. Had a good conversation with someone I know in property who I suppose eggs me on, gives me a bit of ambition something to work towards, he's older got a bigger portfolio not that bothered about houses but told me I'll get there if I keep ploughing on. His house is worth less than mine but got a really solid BTL portfolio - travelling his thing so not in UK much so different but I've got a lot of time for him.

OK, I think you called it wrong

That's the sort of comment you make when your wife has been banging on about needing the bigger house wanting more and showing you the places on rightmove. 

From what you have said she has been the opposite happy with the one you are in and will be while you sort out the mess not looking for another "dream" property yet.

Not only did you call it wrong it is not bed time conversation, that needs to be how great the day has been what great things are planned for the weekend(or talk about them if none) and maybe we are doing good on the debt plans I think we can nail this next year.....
Last thing she probably wanted was the thought that birthday week was going to be all about the £1m house.

She knows it's what you want - going to be VERY hard to dress it up any other way.

You probably know the basics on making people think it was their idea to get stuff done, same applies at home to an extent you both need to need and want the change.

Your mate is right you can do this if you focus on the business.

I think you need another item to your list,  don't p**s of the wife at bed time 0/7


I wrote some of this earlier but left it out.

£700k mortgage at 2% is £3kpm for 25years,

At the start £1.1k of that £3k is is interest that needs to be paid from income(the capital is savings but still from net)

Accommodation is a good debt(as discussed before) but you are still paying for it and you don't need to be paying that interest from net pay yet for a place you don't need when there are better things to be spending it on..

Good debt in the business pays for itself and pays out to cover that extra  for the residential 

I think you are right  in <5 years you can review your accommodation needs/wants  but last night was far too early to be sharing with the wife your plans for the future surplus income you think you can generate. 

Another way to look at this is you are paying for the current house from the income you take out of the BTL business.
Double that in the next 5 years  and you can have your £1m house.

Donk2

Hi, I have £18000 debt on cards, overdraft. Never thought I would hear myself say that. I was more sensible. I suffer with mental health issues which have been made worse by years of debt pressure. My wife also suffers,and we are finding it hard to cope. Personally I'm now on max dose  of medication for anxiety. We have a mortgage  with decent equity, but can't remortgage for some time, and we can't get extra lending on mortgage because I have 0% interest debt on some cards.the situation is becoming desperate, I'm considering an iva, but think that consolidating with mortgage  would be a better option? Should have done it when we renewed , but we were a bit worried. Now it seems like the best option but we are unable to ,at least until April at the earliest. Don't know how we can last that long mentally and financially. Any help advice greatly appreciated

getmore4less

One thing to remember in the second hand market is most people buying are looking for the value.

They are not walking into JL and paying the price on the label, they shop  around they can also wait for the bargains, no need  for the instant fix they can wait for you to drop you asking prices and then make offers.

curtains174

Your parents not coming to your wedding must have hurt, especially given the comment around attending a house warming If you purchase a house of a certain value. The fact that they are prioritising an item over their children says a lot and does go some way to explainIng your mind set and values.

You do have control over how you let this define you, your lifestyle and emotional state, you really don’t need to impress those who only value belongings. Continue with the counselling and debt busting, value your wife and son and you’ll become less stressed and hopefully content.

ladyholly

You are not listening to your wife are you. She doesnt care about another house she does care about having your presence but if you go on as you are eventually she will give up and not care about you.  If you do nothing else listen to what she wants and needs as well as what you want and need.

DayDreamerandGeneralWaster

Agree with @ladyholly it's not just the cost of the house, it's the cost of maintenance and the work needed. You said your wife does all of that. Maybe she doesn't want to spend even more time cleaning a bigger house and gardening just so you can show off. What about her time and time with fam? I can understand why she was angry. I would be livid if l was in her shoes. Not to mention the financial stress.

ryanm8655

The other thing is the sentimental aspects of a home, my little cousins get quite upset when their parents talk about moving to a bigger house. They love this house.

It sounds like you have a lovely house already, one your wife and son feel at home in.

I can understand how you feel about the 7 figure home but regardless of the financial aspect, maybe your wife and son don’t want to move. Personally that would be fine by me...means you can get mortgage free more quickly and have more money for toys.

enthusiasticsaver

Donk2 said:

Hi, I have £18000 debt on cards, overdraft. Never thought I would hear myself say that. I was more sensible. I suffer with mental health issues which have been made worse by years of debt pressure. My wife also suffers,and we are finding it hard to cope. Personally I'm now on max dose  of medication for anxiety. We have a mortgage  with decent equity, but can't remortgage for some time, and we can't get extra lending on mortgage because I have 0% interest debt on some cards.the situation is becoming desperate, I'm considering an iva, but think that consolidating with mortgage  would be a better option? Should have done it when we renewed , but we were a bit worried. Now it seems like the best option but we are unable to ,at least until April at the earliest. Don't know how we can last that long mentally and financially. Any help advice greatly appreciated

You will get more responses if you start your own thread rather than post on someones diary.  Please do not consolidate unsecured debt on to your mortgage.  You may need to consider a DMP where you default on the cards and pay what you can afford.  Have you tried ringing stepchange?  This can be sorted but not sure an IVA is right but stepchange will go into all your circumstances and advise.  They are a free charity.  Be very wary of companies offering you IVAs without exploring other options first.