Single mum to 5, striving for debt free life

savingholmes

Renovating your home and then selling again sounds a great way to build equity and avoid CGT

mark55man

@Bluegreen143 - I'm not saying it can't be done - you read of people getting all the kids at Uni and then moving/downsizing. Just make sure they understand the plan!!

savingholmes

mark55man said:

@Bluegreen143 - I'm not saying it can't be done - you read of people getting all the kids at Uni and then moving/downsizing. Just make sure they understand the plan!!

Even if they know the plan - doesn't mean they follow it. DS ended up an extra year at 6th form. The because of COVID ended up home for a year and half post uni when he had intended to move straight to a big city / travel. DD is home doing an apprenticeship - again not my plan... It's this weird thing. We bring them up to be independent and then we are shocked when they have ideas of their own  My plan was originally to move to the country too....

Jellytotts

One of ours did Uni, the younger one went to work, the older one came back after Uni for 3 months and took the younger one with her into a rented flat....after 6 months they were both back, saved like mad and both used the shared ownership scheme to buy their own flats.  As soon as they were both in, we downsized and they can't come back 😂

Jill12

Fab conversation about growing families and their ever changing dynamics. Even once my children are up, it is fair to say that I  will probably have a few grandchildren so having kids about is always going to be in my life plan. The idea of renovating again is so appealing to me. I spoke with kids yesterday and they are not so fussed if we stay or move which I was delighted about. The wee one was just worried about missing her friends but I can deal with that when the time comes. We are in no hurry to get moving so have the luxury of time. I know exactly the kind of house I am after and the areas I would be willing to consider. My house will sell quickly as in a very good area. I stay on the coast in the country in a big town and I love the area and prices are still reasonable about here- although climbing fast. In that respect I am very lucky. Funny how this has evolved so quickly. I have played about with the idea of extending but I reckon once that was done I would still want to move in a few years. I feel a sense of peace now that I have wrestled with this decision!!! 

So this changes the debt free plan slightly as now I am wanting to save for moving. I was unable to pay PP off with the new interest free CC due to the way PP is set up. Interest kicks in at 20% this month so it makes total sense to clear that so soon as payday comes. The car has been refinanced onto a better but not great rate of 5.9% over 4 years, repayments £308. This week I will probably play about with figures to get a true costing of a house move and start to make some solid plans. Happy Monday everyone 

savingholmes

Sounds like you are on to a winner if the kids are reasonably supportive. I think if you can avoid changing the kids schools - that's the biggest thing... 

Jill12

Payday has arrived today but my wage has not, well half of it has not at least, very frustrating!!! This means I am not paying off PP as I cant leave myself short for the rest of the month. I did a money transfer from CC and this will pay PP off. Transfer fee £48 paid and now the £1220 is interest free for the next 12 months. Money that would have been sent to PP has in partial been sent to savings account. The money that was going to be going to debt is now being saved, with the view I will be moving at some point in the foreseeable future. I am inclined to pay the debt off with profit from the house but again not sure if CGT would allow this or the implications of thid.......any advice greatly received. New plan, for now, will be to pay off CC at 104 monthly and car 308 monthly and all other money will bet sent to savings. If I save enough I should be able to avoid incurring anymore debt due to the move. The house is being valued tomorrow and I am hoping for £160000 or so. All plans are on hold at the moment until I have a clearer plan in my head. However, £681 to the savings account is encouraging. Mega, mega foodshop planned today to refill my barren cupboards. 

On a funny note my time on the dating site lasted less than a week as the effort involved to talk to people via messaging was a pain in the bum, give me a pub and face to face chat any day over silly messaging . My confidence must be growing as yesterday I found the guts and confidence to use the word no with my ex husband. His behaviour and attitude towards his children has always, at best, been blaze. NO..... no and no, why could I not have just said no seven years ago to (whatever the situation is) and just like that all the anguish and stress I have been carrying just melted away along with years of anxiety. Sadly so has the "false" relationship the kids had with their dad. But the kids have handled the situation like total legends with empathy but a not taking any B/S attitude. Possibly my proudest mummy moment to date, they all came together like the awesome humans I know them to be. Going forward there probably will be some kind of relationship between ex and kids but it will be more real and I will not be involved in it one iota. 

Due to yesterdays events, my bestie took me to bingo for the day, well that was an experience!!! My mental agility defo sucks and the 90+ year olds put me to shame with their fast finger actions, I could nt even keep up with the caller. Today is a tidy the house day and make it all pretty for valuation tomorrow xx

Jill12

@savingholmes, I have always managed to keep the kids at the same schools. For me this has always been the most important thing for them. If I was having to move their school I would not move house, too much upheaval for them otherwise so very much agree with you on that. 

mark55man

I'm pretty sure there is no CGT on your primary residence however much you make or however often you move.  You would do better to check on the cutting tax board.  but the website seems pretty clear

Private Residence Relief

You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

• you have one home and you’ve lived in it as your main home for all the time you’ve owned it
• you have not let part of it out - this does not include having a lodger
• you have not used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)
• the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
• you did not buy it just to make a gain

If all these apply you will automatically get a tax relief called Private Residence Relief and will have no tax to pay. If any of them apply, you may have some tax to pay.

Jill12

Thank you @mark55man, your advice is as always helpful and appreciated. 

Yesterday discovered the joy that is Lidl in the town next to me. Extra 5 mins to travel there rather than Asda but I am a convert. I went and filled my trolley up and amazingly the shopping came to £102, getting at least enough food for 10 days. Lovely and quiet and just overall a much better experience. Fuel cost £70, cleaning products and shampoo £33 and saw and mitre block to finish off skirting boards £16. I sent over £104 to credit card, new balance £1144. Savings have £681. I was disappointed my wages were so short yesterday by at least £600  . I ll phone and speak to my manager about that today as that really is disappointing.

I had three kids off yesterday with gastro related complaints but they will defo be back to school today. I managed to get a fair amount of cleaning completed yesterday and will finish the rest off after drop off. Excited and nervous about valuation today. Once this is complete I ll have a better idea of what the next steps are going to be for us as a family. Gotta be honest I dont like having a tidy house, organised chaos is much easier to live with!!