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Budgeting

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    Budgeting

    Hi all, when buying a property would you:
    (a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
    (b) keep a bit for a rainy day

    If I told you this is for a flat with a north-facing balcony and rooms that are not rectangular?

    Tks.

    #2
    Originally posted by mickey View Post
    (a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
    (b) keep a bit for a rainy day
    (b) - always, and if you are really good have (c) and (d).

    Comment


      #3
      Originally posted by mickey View Post
      Hi all, when buying a property would you:
      (a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
      (b) keep a bit for a rainy day

      If I told you this is for a flat with a north-facing balcony and rooms that are not rectangular?

      Tks.
      I wouldn't buy a flat with a north facing balcony - simply because North facing is very cold for most of the year.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        A mortgage is the cheapest way to borrow money. If you get a good discounted rate you could be looking at around 3%. Find something that out performs that and stick it in that. If you need it it's there, if you don't it's making more money than the interest payments anyway. Have to be disciplined if the aim is to pay off your mortgage with it in the long run though, don't just spend the interest. Personally I wouldn't also gamble it in shares etc. Find something fairly safe so you know full well the amount you put in will always be there with a rate at least the mortgage income. If you are talking a decent wage spare then get a BTL. Right property could easily get you ROI's of up to 10%+

        If you are interesting in BTL's have a look at the spreadsheet at the site below. Be pragmatic with the numbers though, don't just stick ridiculously high forecasts in because it looks attractive.

        Buy To Let

        If it isn't that big think of something else. I don't have a clue what ISA's are doing nowadays but there is the crowd funding things or whatever.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by northernladuk View Post
          A mortgage is the cheapest way to borrow money. If you get a good discounted rate you could be looking at around 3%. Find something that out performs that and stick it in that. If you need it it's there, if you don't it's making more money than the interest payments anyway. Have to be disciplined if the aim is to pay off your mortgage with it in the long run though, don't just spend the interest. Personally I wouldn't also gamble it in shares etc. Find something fairly safe so you know full well the amount you put in will always be there with a rate at least the mortgage income.
          So what 'safe' investment returns >= 3%?

          Comment


            #6
            Originally posted by northernladuk View Post
            Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.

            Comment


              #7
              Originally posted by mickey View Post
              Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.
              I know vendors/buyers normally go by a number of bedrooms, while the agents go by a £ per square foot. What would you say is a sane price for a sq ft of indoor space in London?

              Comment


                #8
                Originally posted by mickey View Post
                What would you say is a sane price for a sq ft of indoor space in London?
                About half of what it currently costs.
                While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'

                Comment


                  #9
                  Originally posted by mickey View Post
                  Hi all, when buying a property would you:
                  (a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
                  (b) keep a bit for a rainy day

                  If I told you this is for a flat with a north-facing balcony and rooms that are not rectangular?

                  Tks.
                  Get an overdraft account for the mortgage, like Virgin One Account.

                  You can use it exactly like a bank account with a low-interest overdraft. You stick your cash savings in there to get the repayments down, but always have the option of spending it any time if you need to.

                  Note that the interest repayments you save doing this will always be higher than the return you'll get in a cash savings account, so it's a no-brainer really.

                  Does the north-facing balcony overlook anything interesting?
                  Last edited by Doggy Styles; 30 October 2013, 10:23.

                  Comment


                    #10
                    Originally posted by mickey View Post
                    Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.
                    Erm, there is a line for Annual Expenses which you would put the charges in. Service charges do indeed eat up a lot of it so maybe there is a lesson there?

                    I had a flat on BTL and never again. The service charge did eat in to it plus lots of arguments with the management company about upkeep over the years. I wouldn't get a flat again. I am in the NW so different options to London of course.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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