Discussion
So I'm really unsure what we need to do an flick between the two options day to day...
Currently live in a nice 2 bedroom flat in the London suburbs, purchased (share) exactly 1 year ago. Nice flat, s
t area (although there are worse around). Within the last month (often daily) I have had to put up with mass chav fights outside the bedroom window, joyridden motorbikes (mine was nicked a month ago), noise (blasting radio daily to silly am, the radio, adverts and all), setting bins on fire, a tt who keeps on parking in our allocated space (have asked, he ignores, park on the road outside and aforementioned chavs walk along the row of parked cars - one is particularly fat...)
I work 60+ hour weeks and have had enough.
Luckily my flat, despite this, has gone up 25% since purchase so I now have a decent deposit to utilise elsewhere, however, I'm still in my fix...
£5k sees me out of that but the next issue is affordability, we were wanting to move next year but at 25 next step should be a proper house, in a decent area. However, that's £400k+...as I've been in my job 18 months and had only 1 annual bonus they aren't included in mortgage calculations yet (inv. bank so substantial element of salary). So I'm limited to shy of £300k borrowing...with my £30k deposit...not enough.
Do I stick it for another year, pay of (0%) CC's and move then - could borrow £350k+ next year, or do I look to move now into a smaller 2 bed house as a stepping stone...bit incur £12k of fees and costs (most stamp and legals) to move again in 2 years...
I'm split, changing day by day on chav actions...having to be up at 5 for work it wasn't nice being woken up at 4 by a group blading a car horn then smashing up a shop...
What would you do in my circumstance?
Currently live in a nice 2 bedroom flat in the London suburbs, purchased (share) exactly 1 year ago. Nice flat, s
t area (although there are worse around). Within the last month (often daily) I have had to put up with mass chav fights outside the bedroom window, joyridden motorbikes (mine was nicked a month ago), noise (blasting radio daily to silly am, the radio, adverts and all), setting bins on fire, a tt who keeps on parking in our allocated space (have asked, he ignores, park on the road outside and aforementioned chavs walk along the row of parked cars - one is particularly fat...)I work 60+ hour weeks and have had enough.
Luckily my flat, despite this, has gone up 25% since purchase so I now have a decent deposit to utilise elsewhere, however, I'm still in my fix...
£5k sees me out of that but the next issue is affordability, we were wanting to move next year but at 25 next step should be a proper house, in a decent area. However, that's £400k+...as I've been in my job 18 months and had only 1 annual bonus they aren't included in mortgage calculations yet (inv. bank so substantial element of salary). So I'm limited to shy of £300k borrowing...with my £30k deposit...not enough.
Do I stick it for another year, pay of (0%) CC's and move then - could borrow £350k+ next year, or do I look to move now into a smaller 2 bed house as a stepping stone...bit incur £12k of fees and costs (most stamp and legals) to move again in 2 years...
I'm split, changing day by day on chav actions...having to be up at 5 for work it wasn't nice being woken up at 4 by a group blading a car horn then smashing up a shop...
What would you do in my circumstance?
Edited by kiethton on Wednesday 27th May 16:43
Edited by kiethton on Wednesday 27th May 16:46
None are really great options to be honest with you. I do feel for you as I wouldn't want to be in that position.
Is there any mileage in keeping your property for another year but renting it out and then renting somewhere cheaper? Remember to take into account any tax you'd have to pay on the rental income.
Part of me says suck it up, sell your car if it's nice and buy a stter. I know you shouldn't have to but it's only a year.
Another part of me says your home is your castle and you should be able to come home from work and chill.
Hard one. I'd probably suck it up and sell the car if it was me. If you've achieved (actual) 25% capital growth in a year, I'd probably consider that worth it and would flog the car and deal with the st location as best I could.
Good luck!
Is there any mileage in keeping your property for another year but renting it out and then renting somewhere cheaper? Remember to take into account any tax you'd have to pay on the rental income.
Part of me says suck it up, sell your car if it's nice and buy a s
tter. I know you shouldn't have to but it's only a year.Another part of me says your home is your castle and you should be able to come home from work and chill.
Hard one. I'd probably suck it up and sell the car if it was me. If you've achieved (actual) 25% capital growth in a year, I'd probably consider that worth it and would flog the car and deal with the s
t location as best I could.Good luck!
I'm half thinking that but after suffering with little sleep it's starting to jarr.
Car isn't worth much but is now mechanically sound and good cosmetically after some considerable expense (late E39 540i sport). Sold an E92 335i to free up cash to start saving for this deposit in a previous job 3 years ago.
Car isn't worth much but is now mechanically sound and good cosmetically after some considerable expense (late E39 540i sport). Sold an E92 335i to free up cash to start saving for this deposit in a previous job 3 years ago.
I can understand both perspectives. It's all about how much that capital appreciation is worth to you. It's unlikely if you move you'll achieve similar capital growth (unlikely but not impossible).
One thing to bear in mind is that often mortgages are portable to a new property.
I'd probably still suck it up and deal with it for the capital growth at your stage in life.
If the car is good, and you care about it cosmetically, then sell it and buy something you don't give a st about. It's actually quite liberating.
I had an old stter of a Mondeo 2.5L V6 Ghia X (if you must know!) between cars waiting for a bit of engine work to be completed on my new car. Within the first hour of owning it, I bumped into a low wall parking at a restaurant. It was only as I was sipping my drink that I realised that I hadn't even bothered to look at the damage I'd done 
One thing to bear in mind is that often mortgages are portable to a new property.
I'd probably still suck it up and deal with it for the capital growth at your stage in life.
If the car is good, and you care about it cosmetically, then sell it and buy something you don't give a s
t about. It's actually quite liberating.I had an old s
tter of a Mondeo 2.5L V6 Ghia X (if you must know!) between cars waiting for a bit of engine work to be completed on my new car. Within the first hour of owning it, I bumped into a low wall parking at a restaurant. It was only as I was sipping my drink that I realised that I hadn't even bothered to look at the damage I'd done Thanks all, am toying with selling the car, may have to look at doing so, values are all over the place for late E39 540i's though!
Moving back into the parents is a no-go they've given my old room away and the GF doesn't get on too well, likewise renting, dead money that will end up costing near double, month to month.
Further capital growth here is limited tbh, where I am looking is likely to be better.
Just checked and the mortgage is portable and would give us more than enough to move to a smaller 2 bed semi, limit under current affordability of £325k or so... Very close to just doing it, even if for just a few years and then taking a chance to upgrade to the level beyond (£500k+) when the time for family comes and I progress my career further with proper IB bonuses...
Moving back into the parents is a no-go they've given my old room away and the GF doesn't get on too well, likewise renting, dead money that will end up costing near double, month to month.
Further capital growth here is limited tbh, where I am looking is likely to be better.
Just checked and the mortgage is portable and would give us more than enough to move to a smaller 2 bed semi, limit under current affordability of £325k or so... Very close to just doing it, even if for just a few years and then taking a chance to upgrade to the level beyond (£500k+) when the time for family comes and I progress my career further with proper IB bonuses...
How about moving further out to a more affordable area and either changing jobs or accepting more of a commute?
£400k for anything within an acre of a neighbour seems silly to me.
Im not suggesting this far up north but to give you an idea of what I'd pay for something like this...
http://www.rightmove.co.uk/property-for-sale/prope...
£400k for anything within an acre of a neighbour seems silly to me.
Im not suggesting this far up north but to give you an idea of what I'd pay for something like this...
http://www.rightmove.co.uk/property-for-sale/prope...
Indeed it is a share so am currently restricted.
This can be lifted easily, by buying the additional share.
I could rent, if I purchased the above, but would not want to. Given the location I would not want to as rent collection/tenant desirability/repairs could be an issue.
Re. Moving further out, it's a no go. Family/friend ties plus my job (at desk for 6:30am) limits options there, it's a good job with very good prospects so really don't want to change careers an this is strictly desk based, often with 80+ hour weeks so can't be too far away
This can be lifted easily, by buying the additional share.
I could rent, if I purchased the above, but would not want to. Given the location I would not want to as rent collection/tenant desirability/repairs could be an issue.
Re. Moving further out, it's a no go. Family/friend ties plus my job (at desk for 6:30am) limits options there, it's a good job with very good prospects so really don't want to change careers an this is strictly desk based, often with 80+ hour weeks so can't be too far away
Edited by kiethton on Thursday 28th May 10:07
Examples of things that I can afford now and am considering – neither in the core target area – optionality to add some value through refurbishment but not much can be done to add significant value:
http://www.rightmove.co.uk/property-for-sale/prope...
http://www.rightmove.co.uk/property-for-sale/prope...
Sort of thing I would be targeting next year:
http://www.rightmove.co.uk/property-for-sale/prope...
plus others around Bromley/Lee/Chislehurst/Petts Wood
and what I may be able to move onto in a couple of years’ time should I get something like the first 2 and work goes well….
http://www.rightmove.co.uk/property-for-sale/prope...
http://www.rightmove.co.uk/property-for-sale/prope...
I’m currently in here:
https://www.google.co.uk/maps/place/Ranmore+Path,+...
Hope the links work...as it gets more expensive the area gets nicer, chav element down etc. always naturally target a wreck/in need of modernisation home, allow us to decorate/extend as we like without paying for the taste of others.
http://www.rightmove.co.uk/property-for-sale/prope...
http://www.rightmove.co.uk/property-for-sale/prope...
Sort of thing I would be targeting next year:
http://www.rightmove.co.uk/property-for-sale/prope...
plus others around Bromley/Lee/Chislehurst/Petts Wood
and what I may be able to move onto in a couple of years’ time should I get something like the first 2 and work goes well….
http://www.rightmove.co.uk/property-for-sale/prope...
http://www.rightmove.co.uk/property-for-sale/prope...
I’m currently in here:
https://www.google.co.uk/maps/place/Ranmore+Path,+...
Hope the links work...as it gets more expensive the area gets nicer, chav element down etc. always naturally target a wreck/in need of modernisation home, allow us to decorate/extend as we like without paying for the taste of others.
Have done, alongside Blackfen and Bexleyheath only to be ruled out by the GF as too far away from her family. I'm daily easy though but she can't get away - all I need is sub 30 minutes drive to Sundridge Park for golf.
Broad search area is pretty big and roughly bounded by Orpington/Chelsfield, Hayes, Beckenham Town Centre, south Catford (E of A21), Hither Green, New Eltham, Sidcup (W of railway line) and back to Orpington (north of Sevenoaks Way).
There are exclusion zones - St Pauls/Mary Cray for current reasons, Chinbrook estate, Downham/Bellingham and the Belmont estate area in Chislehurst...she's not picky!
Railways not too much of an issue - in by 125cc motorbike/push bike for cost/fitness/convenience reasons - currently 15 miles from work which, given hours and level of (un)fitness can't be daily, of was sub 10 miles and/or north of chislehurst hills it probably would be.
Broad search area is pretty big and roughly bounded by Orpington/Chelsfield, Hayes, Beckenham Town Centre, south Catford (E of A21), Hither Green, New Eltham, Sidcup (W of railway line) and back to Orpington (north of Sevenoaks Way).
There are exclusion zones - St Pauls/Mary Cray for current reasons, Chinbrook estate, Downham/Bellingham and the Belmont estate area in Chislehurst...she's not picky!
Railways not too much of an issue - in by 125cc motorbike/push bike for cost/fitness/convenience reasons - currently 15 miles from work which, given hours and level of (un)fitness can't be daily, of was sub 10 miles and/or north of chislehurst hills it probably would be.
Was in a similar position years ago and didn't sell the car, move, etc.
I'd advise you to do the complete opposite.
It will eat away at your soul and no amount of money is worth the mental anguish of being stuck somewhere you don't like.
Get the flat prepped and on the market. Rent if you can't find somewhere to move to.
I'd advise you to do the complete opposite.
It will eat away at your soul and no amount of money is worth the mental anguish of being stuck somewhere you don't like.
Get the flat prepped and on the market. Rent if you can't find somewhere to move to.
MGTS said:
You might want to check whether you can ever actually get a higher mortgage based on your bonus. Most banks see a bonus as just that (I.e. Not guaranteed) and therefore won't lend on it. Are you sure you can get the higher lending next year?
Most banks average the last 3 years bonus.Edited by MGTS on Thursday 28th May 12:46
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