To buy or not to buy? That is the question.....
Discussion
I'm in a bit of a quandary. My life situation has radically changed in the past 12 months ( see my other posts) and with it i've had a series of financial blows which is making me hesitate about future investments.
Basically after two years of fighting my corner on my own i got divorced last year. I received my share of the house equity, paid off the divorce debts and set myself up in a rented 2 bed flat. Under French tenancy agreements the flat was unfurnished so i had to fit it out from top to bottom. That took a chunk out of my cash but on the other hand i signed a three year tenancy for a clean, modern, comfortable 2nd floor flat with an underground parking space in a gated residency, and with a guarantee of no rental increase during this period! As a bonus all the furniture/kitchen appliances/beds/TV etc is mine. My kids stay here 1 week in 2.
Unfortunately, in the past 12 months my monthly finances have taken some battering: combined monthly salary from my 3 jobs dropped from 2800 euros to just under 1800 euros due to getting fired from the 2 part time teaching jobs ( university budget cuts!)and having to accept a drop of 400 euros/month net in my main job in order to keep it ( and so that my daughter can carry on going to the school).I'll have to work more hours for less pay to keep the job.
Consequently, i have to dip into my savings every month just to survive.
Furthermore, i invested 30% of my savings in a short term high risk fund ( on the advice of my now previous personal banker) and the fund went belly up due to 'financial irregularities'. The legal case might take a further 2 years.
I placed the rest in several low interest accounts. I don't smoke/drink/go out, and my only real leisure spending is my monthly gym membership and cinema card. My son is probably going to a top 'Prepa' ( cramming university) in Paris from September, so that's extra expenditure to budget for.
I spend around 350 euros/month on petrol but my annual mileage can be declared to get a tax deduction. As a result i shouldn't pay tax next year!
Several French banks have offered me a 20 year fixed rate mortgage at 2,75 -3,5 % despite my drop in income, but that means putting down 50 - 70% of my savings. A bit risky, especially considering my current situation. However, i'll be 50 next year so it could be my last chance to get back into the housing market. The area where i live is booming with 3 huge shopping centres nearby, excellent transport links to Paris, hi tech industries setting up etc, but property prices have doubled in ten years.
There's no chance of me returning to the UK for at least another 5 years, but i don't really fancy paying 750 euros a month in rent for that long.
Basically after two years of fighting my corner on my own i got divorced last year. I received my share of the house equity, paid off the divorce debts and set myself up in a rented 2 bed flat. Under French tenancy agreements the flat was unfurnished so i had to fit it out from top to bottom. That took a chunk out of my cash but on the other hand i signed a three year tenancy for a clean, modern, comfortable 2nd floor flat with an underground parking space in a gated residency, and with a guarantee of no rental increase during this period! As a bonus all the furniture/kitchen appliances/beds/TV etc is mine. My kids stay here 1 week in 2.
Unfortunately, in the past 12 months my monthly finances have taken some battering: combined monthly salary from my 3 jobs dropped from 2800 euros to just under 1800 euros due to getting fired from the 2 part time teaching jobs ( university budget cuts!)and having to accept a drop of 400 euros/month net in my main job in order to keep it ( and so that my daughter can carry on going to the school).I'll have to work more hours for less pay to keep the job.
Consequently, i have to dip into my savings every month just to survive.
Furthermore, i invested 30% of my savings in a short term high risk fund ( on the advice of my now previous personal banker) and the fund went belly up due to 'financial irregularities'. The legal case might take a further 2 years.
I placed the rest in several low interest accounts. I don't smoke/drink/go out, and my only real leisure spending is my monthly gym membership and cinema card. My son is probably going to a top 'Prepa' ( cramming university) in Paris from September, so that's extra expenditure to budget for.
I spend around 350 euros/month on petrol but my annual mileage can be declared to get a tax deduction. As a result i shouldn't pay tax next year!
Several French banks have offered me a 20 year fixed rate mortgage at 2,75 -3,5 % despite my drop in income, but that means putting down 50 - 70% of my savings. A bit risky, especially considering my current situation. However, i'll be 50 next year so it could be my last chance to get back into the housing market. The area where i live is booming with 3 huge shopping centres nearby, excellent transport links to Paris, hi tech industries setting up etc, but property prices have doubled in ten years.
There's no chance of me returning to the UK for at least another 5 years, but i don't really fancy paying 750 euros a month in rent for that long.
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