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redgenieuk

A Chat With A Friend.....

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Hi all,

I forgot to post this yesterday. I went out with a good friend on Sunday for a meal and we got chatting about house prices. She bought her house 6 months after i sold mine. She works for a big DIY chain in our area as an assistant manager.

She bought her house for about 120K I think, fixed a mortgage for 2 years @ 4.6%, a mortgage of 35 years! Jesus. I thought it would be interesting to see hwo she is getting on, so i asked. She said she has no money left at month end allowing for 100 quid for food and 100 quid for clothes, makeup and going out e.t.c. She was clearly worried about the interest rate rises and kept saying they had to stop ... blah blah blah.

The main reason she cited for buying was that they were due to build a new rail link through our town direct to London......... sadly thats gone by the wayside now.

She is a godo friend and I did try and stop her before... but you know how people are! But I think she will be OK as she will just get a lodger... but imagine living life this tight! Not nice!

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Hi all,

I forgot to post this yesterday. I went out with a good friend on Sunday for a meal and we got chatting about house prices. She bought her house 6 months after i sold mine. She works for a big DIY chain in our area as an assistant manager.

She bought her house for about 120K I think, fixed a mortgage for 2 years @ 4.6%, a mortgage of 35 years! Jesus. I thought it would be interesting to see hwo she is getting on, so i asked. She said she has no money left at month end allowing for 100 quid for food and 100 quid for clothes, makeup and going out e.t.c. She was clearly worried about the interest rate rises and kept saying they had to stop ... blah blah blah.

The main reason she cited for buying was that they were due to build a new rail link through our town direct to London......... sadly thats gone by the wayside now.

She is a godo friend and I did try and stop her before... but you know how people are! But I think she will be OK as she will just get a lodger... but imagine living life this tight! Not nice!

I don't call £100 for food and £100 for going out "this tight". But obviously it's all relative.

I'm glad she's got a lodger. Not only can she get the tax free sum from that but (with the right lodger) she can also have somebody to chat to, to prevent her going mad when she's down to beans on toast.

I tried lodgers once ... lasted a month. One was having 1 hour long showers - on a water meter with South West Water (highest water bills in the country) and leaving on up to 5 lights in the house AFTER they'd gone out. Drove me nuts, but I don't play well with other people in my space.

I also had to phone around to change my house insurance. Surprisingly, whereas one company would accept one lodger, I had to find another company to accept two. Didn't cost a lot more though - and I was pleased I did it as I don't like breaking the rules "just in case".

Edited by ScaredEitherWay

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I don't call £100 for food and £100 for going out "this tight". But obviously it's all relative.

I'm glad she's got a lodger. Not only can she get the tax free sum from that but (with the right lodger) she can also have somebody to chat to, to prevent her going mad when she's down to beans on toast.

I tried lodgers once ... lasted a month. One was having 1 hour long showers - on a water meter with South West Water (highest water bills in the country) and leaving on up to 5 lights in the house AFTER they'd gone out. Drove me nuts, but I don't play well with other people in my space.

I also had to phone around to change my house insurance. Surprisingly, whereas one company would accept one lodger, I had to find another company to accept two. Didn't cost a lot more though - and I was pleased I did it as I don't like breaking the rules "just in case".

tell me about it - i was in a houseshare a few yrs ago- absoloute slobs- i once found the rugby captain p155ing in a corner of the kitchen !!! - that was the last straw 4 me- i had 2 leave i know share a flat with 1 other person - who is pleasant and decent company - the best thing is that i have an ensuite bathroom -

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I don't call £100 for food and £100 for going out "this tight". But obviously it's all relative.

I'm glad she's got a lodger. Not only can she get the tax free sum from that but (with the right lodger) she can also have somebody to chat to, to prevent her going mad when she's down to beans on toast.

I tried lodgers once ... lasted a month. One was having 1 hour long showers - on a water meter with South West Water (highest water bills in the country) and leaving on up to 5 lights in the house AFTER they'd gone out. Drove me nuts, but I don't play well with other people in my space.

I also had to phone around to change my house insurance. Surprisingly, whereas one company would accept one lodger, I had to find another company to accept two. Didn't cost a lot more though - and I was pleased I did it as I don't like breaking the rules "just in case".

Maybe its just me who thinks 200 quid spare at the end of the month for all your food and extras is not much? She is young, 23, you know how the young 'uns are! We like a drink! (I include myself in that! Although I am not a heavy drinker!)

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Maybe its just me who thinks 200 quid spare at the end of the month for all your food and extras is not much? She is young, 23, you know how the young 'uns are! We like a drink! (I include myself in that! Although I am not a heavy drinker!)

It's called having priorities.

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Can you let me know how you eat on 3 quid a day? I'm genuinely curious.

£200 for food per month is not £3 per day. She isn't forced to go out on the lash. That's her choice.

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Can you let me know how you eat on 3 quid a day? I'm genuinely curious.

I usually manage on about £2.50 a day, though I got by ok on a pound a day at one stage but that involved a bit more shopping around for bargains etc. Check moneysavingexpert.com's 'old style' forum for ideas.

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It's called having priorities.

Or, putting your life on hold for the sake of buying a house

NO house is worth losing your social life over, we're here for a good time, not a long time

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Can you let me know how you eat on 3 quid a day? I'm genuinely curious.

A pint of larger and two packets of crisps - £2.70 - 30p change to go towards the depoist for a house! <_<

Whoops sorry - forget the crisps!!

Edited by flapjack

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So lets review:

1) She is 23

2) She works as an assistant manager in somewhere like B&Q

3) She had the foresight to buy her own place on a fixed rate mortgage.

4) She has the space to get a lodger if required.

5) She can she still spend £100/month on booze and nights out.

Poor thing, my heart bleeds :)

Honestly, you don't need to be worried. Sure, she will have to curb her nights out, but it seems like she is in a pretty good situation really.

If she can control her spending, in five or ten years time her payments will be significantly lower, her equity will have risen, and she will be in a good position for someone her age.

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So lets review:

1) She is 23

2) She works as an assistant manager in somewhere like B&Q

3) She had the foresight to buy her own place on a fixed rate mortgage.

4) She has the space to get a lodger if required.

5) She can she still spend £100/month on booze and nights out.

Poor thing, my heart bleeds :)

Honestly, you don't need to be worried. Sure, she will have to curb her nights out, but it seems like she is in a pretty good situation really.

If she can control her spending, in five or ten years time her payments will be significantly lower, her equity will have risen, and she will be in a good position for someone her age.

It will be bleeding when she comes off that 4.6% fixed ,can't afford the arrangement fee for another fix ,and goes onto 8% plus variable as rates rise.

Edited by crashmonitor

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It will be bleeding when she comes off that 4.6% fixed ,can't afford the arrangement fee for another fix ,and goes onto 8% plus variable as rates rise.

I doubt that. Sure, the rise will eat into her £100 spending money, but as mentioned, she justs gets a lodger and bingo, problem (almost certainly) solved.

Once rates come down again (doesn't everything go in cycles as people keep saying??), she keeps the lodger and overpays the mortgage (or wastes it if she is not the smartest person in the world), or kicks him out and has the place back to herself.

Even if the worst come to worse, surprising I know, but there is no crash yet, so her property has almost certainly risen in value now, so she can sell it without worry about negative equity and probably make a profit.

Still, I suppose you are right.. Maybe she could have not bought the place, and continued paying off someone elses mortgage instead..

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Even if the worst come to worse, surprising I know, but there is no crash yet, so her property has almost certainly risen in value now, so she can sell it without worry about negative equity and probably make a profit.

To be wiped out by the increased cost of her next place :rolleyes:

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I usually manage on about £2.50 a day, though I got by ok on a pound a day at one stage but that involved a bit more shopping around for bargains etc. Check moneysavingexpert.com's 'old style' forum for ideas.

£2.50 a day? And I though its all those 20 in 1 house types that are cheap! :blink:

£2.50 a day for food? To live on, care for the only precious thing you have - your health?? Wow!! What on earth are you eating?? :blink::blink::blink:

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To be wiped out by the increased cost of her next place :rolleyes:

Of course, but she will end up paying the increased cost anyway, so at least this way she has something to contribute to it, rather than nothing.

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''she can sell it without worry about negative equity and probably make a profit. ''

A profit in South Lincolnshire on a recent purchase....that would be a miracle.

Edited by crashmonitor

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I doubt that. Sure, the rise will eat into her £100 spending money, but as mentioned, she justs gets a lodger and bingo, problem (almost certainly) solved.

Once rates come down again (doesn't everything go in cycles as people keep saying??), she keeps the lodger and overpays the mortgage (or wastes it if she is not the smartest person in the world), or kicks him out and has the place back to herself.

Even if the worst come to worse, surprising I know, but there is no crash yet, so her property has almost certainly risen in value now, so she can sell it without worry about negative equity and probably make a profit.

Still, I suppose you are right.. Maybe she could have not bought the place, and continued paying off someone elses mortgage instead..

Less competing for BTL flats hastening their demise :lol:

Seriously though, " she just gets a lodger". It isn't that simple, economically and psychologically lodgers are draining. No more walking around naked, it is no longer your own mess, she is going to face tough challenges ahead

Edited by me me me

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Seriously though, " she just gets a lodger". It isn't that simple, economically and psychologically lodgers are draining. No more walking around naked, it is no longer your own mess, she is going to face tough challenges ahead

There's a lot of this about. I've lost count of the number of times someone has said "just rent it out".

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£200 a month spare cash isn't much at all, not when you take into account food for a month and maintaining some kind of a life. £100 a month for going out is nothing - £25 a week. That's a couple of cheap nights out a week and the rest of the time the drudgery of sitting in front of the TV.

Actually, that's what I liked least about owning my own property - I felt because I owned, I somehow should be staying in "enjoying" the house and saving money for the next crisis. It depressed the hell out of me. Renting makes me want to be out enjoying life. I certainly would 't want to be tied down to a mortgage that stopped me doing what I wanted to do - you only live once and you can't take anything with you when you go.

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"just rent it out".

yeah, like its the simplest thing in the world.

I've seen men and women age prematurely because of their reliance on rental income.

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No more walking around naked, it is no longer your own mess, she is going to face tough challenges ahead

Sure, I don't think many people who chose to have one, but if it is get a lodger, or lose the house, it becomes a no-brainer in most cases.

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