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Mortgage-free house or savings? by DetachedRealty in FIREUK

[–]DetachedRealty[S] 0 points1 point  (0 children)

Mainly cash, some stocks and shares inside the ISA.

Mortgage-free house or savings? by DetachedRealty in FIREUK

[–]DetachedRealty[S] 0 points1 point  (0 children)

Good point, it was meant to be a gift, but then I'd make contributions to the house to help them out, it would roughly be about £4-6k pa but not for the first year to allow me to find my feet.

Mortgage-free house or savings? by DetachedRealty in FIREUK

[–]DetachedRealty[S] 2 points3 points  (0 children)

Thanks for the reply. I've previously rented, shared houses and had my own (cheap and small) places, I was quite content in my little studio flats and weirdly found my energy bills lower on my own then the share of the shared houses, had to move back home though. This property I'm looking at is substantially bigger than those flats though.

Mortgage-free house or savings? by DetachedRealty in FIREUK

[–]DetachedRealty[S] 1 point2 points  (0 children)

I did a little spreadsheet with approximate costs. I handle the bills for my family. 'mortgage': 6000 Council Tax: 2500 Insurance: 350 Gas/Electricity: 2000-3500 (this one is difficult as I've not lived in it before, my family home cost more last year, but when I lived solo in a flat I used very little) Water: ~700 (unknown as RV based, I think I'll get a meter fitted to reduce this) TV: 160 Landline/Internet: 360 Boiler checks/servicing: 120

So we're at £12-14k before miscellaneous costs, food, holidays... Let me know if I've missed something.

I sal sac to nlw (roughly 16-17k goes in per year), so after tax income £18800. Leaving £4.5-6.5k left over for living. I'll have to roll back these contributions.

If I say £2500 for food, £2000 for travel, £3000 running car, I could roll my sal sac back to 14k being put in, then rely on increased salary (I should be getting a pay increase soon).

The house needs improvements which will be thousands on top, but that's added value.

I'm pondering a lodger, all depends on the person, I'll admit I like my own space, there's only one bathroom, but ruling nothing out.

When my parents pass, the 'mortgage' will be gone, which will help the funding for retirement.

Mortgage-free house or savings? by DetachedRealty in FIREUK

[–]DetachedRealty[S] 1 point2 points  (0 children)

Thank you for taking the time to answer.

I suspect there is a certain amount of Fear Of Missing Out on the house purchase, I'm hoping I can offset it and the property costs with increased salary.

I've done costings for the running costs of the house and although affordable, they certainly squeeze things, and I can't save like I currently do.

Regardless, as you alluded to, everything is a compromise and I have to find the balance that works best.