Future Proofing my life: Deposit saving then MFW journey in under 13 years

LadyWithAPlan

Grogged said:

Everyone has a grrr day, I had a meh? day recently, so much planned and meh? happened...
Are you able to change utility company?
Fingers crossed I've met my first PB millionaire! 😆
Yay! to house hunting.
On paying a broker, I would if they were cheaper when factoring in their costs into the deal.
I think I may need to sign up to prolific, but that also means I need a PP account (never really needed one).

Definitely go for prolific I have only been a member for just over a week and it's my first survey site but it is definitely worth it. Best to randomly check thru the day.
It's the only survey site I signed for. But think there are a few decent others.

Ooh the thought of that PB million. Definitely would go into home and Sipp.  I am already porportining it up  MSE style.

Tx for broker tip. 

I may buy more of SUPR actually for my SIPP, I was thinking that yesterday as it looks well Placed and I am already getting income and growth from it.
I will check out your mentioned others, you make sense.

I saw the morrison's pension board obviously focused on it not turning into another Phillip green story. I gather the
Pension fund luckily  has a lien in the store owned properties. 

So many of these old businesses get grabbed for their cash properties but then the long term maths does not add up. In leasing them back, its too short term. 

Orangetoes

Gosh you are so organised! Well done! House prices in the south are just ridiculous but it seems like you have a good plan! 

LadyWithAPlan

Orangetoes said:

Gosh you are so organised! Well done! House prices in the south are just ridiculous but it seems like you have a good plan! 

Ridiculous is the right word, I love my London but ouch,..

LadyWithAPlan

 Flat hunting has started!!

Hope you are all well – so I finally started looking at flats to buy ....  I figured I should start looking for what I have been saving for.

Saw 6 flats  in one day  yesterday all East London h way. I am seeing more tomorrow and Tuesday.

 I feel a little deflated in some ways as I really want a 2 bed with a balcony and freehold (somewhere not too in the back end of nowhere)… trying to get all three is going to take some time and a miracle … – the location issue requires an extra saint or angel 

 My £450k stretch will buy me something livable East London way leasehold so that’s the good news, the 2nd apartment I saw - 2 bed 2 bath (1 ensuite) with a balcony was actually lovely  but ..the service charges though ouch £2200 pa + £300 pa GR. So not MSE...i cant do it.

-        I have started asking what  2 beds freeholds are available…     

-       I found also seen on my 3rd flat viewing a really nice place on the canal – the balcony does not overlook the canal ...but it is lovely, 2 bed, 1 bath, separate kitchen – not huge but workable. It does not need any initial work  though a new kitchen floor maybe later.   However £154 pm service charge...  I did like it though and I could be happy there. 

When I came home though I am aware how much I love my current area and my v reasonable rented large flat, but this is a long term plan for my life.

Speaking to a broker next week to see what actual mortgage  figures are  and how long I can get the term for - 23 years be better but only 18 years til I am 70  (!) and payments  at £2k a month... I will overpay of course so  but I think you are all right now is the time to get in especially as I can get this contract mortgage and interest rates are low,

Home finding travel costs

it was £7.40 to go out twice out one day to see flats – I had it in my travel pot but I will need to budget tube/bus money extra for house hunting for the next couple months 

Spending over the last 3 days– prompted by my friend I have booked return trains to a wedding next month £32.15 thru TCB so hopefully will get £1.67 cash back. Had it saved in my travel pot so. Also half of it  paid by my paypal prolific cash out of  £15.25 so hopefully with cashback  - real money cost  to me =  £15.23.   First class prebooked was only £2.15 each way extra and friends going 1st class.

There will be cabs to/from the venue  to pay for yet and also tube to Liverpool St.  The 3 days hotel near the venue is £360 – cheapest I could find but they have coaches to/from the hotels so once I am there it is all paid for. I need to check if breakfast is included or I will be carrying my nutribullet and protein shake

Not cheap in a year I am buying my flat but after many COVID  delays, I would not miss it for the world. It’s a huge 3 day fully laid on extravaganza and will be full of my London ‘family’

 They want money towards the honeymoon as they have a flat already  – I am not sure what is reasonable to give. I guess £50 to £80?  £100?  I don’t think that will even cover the cost of my dinner/drinks  for rehearsal  dinner and they laying on everything so …

Free money

 55p saved at checkout at M+S on an offer I did not know existed – will move that to Savings

£7.08 c/prolific – woohoo free money and over my £100 target now

I also got with my  Holland and Barrett 'subscribe and save' where you get the 5th order free  and  I got my 5th order which normally costs  £27.04 

I guess this is free money - it certainly is free supplements

August  Free Money  = £138.28 - so I smashed my £100/month goal 
Nectar  points used £17.50 
Green Jinn £1 + £2.13 I did not know was there  + £1 = £4.13
Co-op  75p + 50p 
£12 Too good to go voucher
£10 uber eats voucher 
Amazon £6 gift card offer

Tesco points £4.81 used from my gift card

£20 – neighbour sale

£12.18 Prolific C/O -  +£15.25 +  7.08

Lidl coupons 49p

H&B £27.04 5th delivery subscribe and save

M+5 55p

 Aug 16th to 31st  Groceries Challenge £53.56 / £70 

Grocery £8.78  – M+S reduced – and some dips/chips. 

I did not need any of this – I have a full fridge/freezer but was walking past M&S at about 6pm ish when I know they reduce food by me. Not as good a bargain as sometimes – I think maybe Mondays are better but still I have enough food to last 2 or 3 weeks I think.  Aim is to stop filling fridge and eat some of it as no space in my small freezer.

However this is my first ever attempt at a grocery challenge so feeling good. My normal budget is £200 per month for groceries - Sept aim is £170 

I have had one invoice paid so I can start moving cash around for Sept over the weekend and also I will tidy up my pots where they are short term. I normally leave cash in the grocery pot for next month but I am going to empty that and my travel pot out into savings Monday and then refill. It is making me focus on saving more. I will break the 70,000 savings when I start shifting money hopefully or if not  I am due more in next week

House Savings:   £68,661.51/ £100,000       

 

 

 

South_coast

I don't think those service charges are way out - I'm paying £150/month for a small 1-bed, and I'm a long way from London (and have been warned it'll be going up this year 🙁). It's painful coughing up every month, but it does come with the reassurance that if the building needs major work a) it'll get done pretty quickly as the money is already there; and b) I won't be getting leaned on to suddenly produce a big pile of cash towards it

SandyShores

Great news on the flat hunting.  It took us a while to settle into our new area, and we love it more than the old place now.  Never thought that was possible, but I think it helps because the property is ours and we've been able to make it our own - it was just strange moving from an area we felt settled in.  I agree with @South_coast , the service charges sound about right.  I hadn't thought about not having to face any big repair bills, and a small benefit is that buildings insurance is usually included.  

Best of luck with the flat hunting

Grogged

I'm probably going to make a very dumb suggestion here...
Have you considered initially buying your property as a BTL in the first instance?
If you're fairly happy and settled where you are for now, get someone else to pay for it in the short term.
Then once you're ready move in yourself.
You'd have a good deposit for a BTL and could still OP.

LadyWithAPlan

South_coast said:

I don't think those service charges are way out - I'm paying £150/month for a small 1-bed, and I'm a long way from London (and have been warned it'll be going up this year 🙁). It's painful coughing up every month, but it does come with the reassurance that if the building needs major work a) it'll get done pretty quickly as the money is already there; and b) I won't be getting leaned on to suddenly produce a big pile of cash towards it

Thanks for this,  good to know. You are leasehold as well?
I am learning what averages are at present but the thought of such crazy monthly bills - I have been spoilt with cheap accommodation so.
Got My DD notice for my rent this month- lovely and low .. my future mortgage will be 2.5 times it plus extra council tax, service fees etc . So my current 6 month EF will overnight become a 2 month one.. so I know the temptation to put every spare saving into the house deposit but then will need to build my EF up quick..

I have 2 friends who  both had swimming pools in their buildings.. both pools leaked, one was in a historic building, one at the basement of a massive tower block in Elephant and Castle... you can imagine the charges... and they both ended up paying 2 years for pools that were closed. 
Lesson to myself - no pools, no gyms, no 24 hr concierge

LadyWithAPlan

Grogged said:

I'm probably going to make a very dumb suggestion here...
Have you considered initially buying your property as a BTL in the first instance?
If you're fairly happy and settled where you are for now, get someone else to pay for it in the short term.
Then once you're ready move in yourself.
You'd have a good deposit for a BTL and could still OP.

It is so not dumb. I have been considering it but there will be the stress of my mortgage if I cant get someone in straight away and also have to keep my current home going. I am still on 3 days a week though in the one company, I could go and get a 5 day a week project or 2 extra days and then I would have more cash to throw at the issue

It could be workable though  - I do have a 28 day notice period on where I stay now but also it looks like I could be here for another 3 years ..

One flat I saw needs major work but has real potential so I am thinking at least get it and move in after its done so then the natural progression is  is just don't move in at all ...

Can one get a  normal mortgage then switch to BTL? Or would they even have to know as I am on a private arrangement ?

LadyWithAPlan

SandyShores said:

Great news on the flat hunting.  It took us a while to settle into our new area, and we love it more than the old place now.  Never thought that was possible, but I think it helps because the property is ours and we've been able to make it our own - it was just strange moving from an area we felt settled in.  I agree with @South_coast , the service charges sound about right.  I hadn't thought about not having to face any big repair bills, and a small benefit is that buildings insurance is usually included.  

Best of luck with the flat hunting

I have lived in lots of parts of London and I always fall in love with their quirks so I am sure you are right and I will get to love it.

Good to know on standard rate service charges - its all new to me...

Off to see two flats locally to me this afternoon near my gym so I can take my kit - and means I dont have to pay for tube travel - I am so MSE!

I have noticed that since I started this diary a couple weeks ago I have definitely spent less. I have always budgeted but then not tracked beyond putting money in each saving pot and moving it back into my main bank account when I spend it. I often  end up using my float.

This new  focus on ensuring there is money left in some of the pots such as grocery and travel to then move to my savings at the house fund has me saving more miraculously.  I will definitely hit £70k target once I do my  new invoice payment for Sept 1st

It also works as a  fellow MSE refers to it as  'smug filter' as I am now  eye balling the  annoying fact I have a £33 CC to pay next sept 29th but from Aug spends yet only £17 to cover it  from main bank acct  - so I must have overspent somewhere this month. It should be flat!  (There is extra in my bank  and I have lots in spare pots and also got  an invoice paid but this is August related spending and I want to see full August figures before filling/ refilling my funds  and pots again for Sept 1st)