We found our (my?) dreamhouse this weekend. We went to go look at it, decided we could both live in it, figured that it was a good investment, crunched the numbers, and then had to let it go. It would be doable but just too tight. I looked online today and saw it was sold. It took less than 2 days to sell. I’m not surprised. It was lovely, in a great location, and competitively priced.
letting go … Does anyone else see a THEME DEVELOPING HERE?
The good thing about the process, however, is that it made us take all of our Kakebo budget books, that have been on hard paper sheets, and put them all in an excel file.*1 We did this so we could then caclulate out 1-year projections. And we made graphs. I fucking love graphs. That in an of itself was an excellent thing to do as it helped me see exactly the kinds of savings / pay off debt choices that we are able to make over the next year and the maximum savings rate (20%) that we can achieve. Except I never do it because the 20% I might save (just under 1000 pounds) goes to pay off the credit card every month. We also pinpointed where we might be able to cut spending (maybe on switching car insurance).
So, 1 year from now we can either have a downpayment for a flat or, alternatively, we could be in half as much debt. This would be the result of saving my husband’s bonuses and saving 20% of our income. What would you choose? To pay down debt or to buy?
In the meantime, I see a lot of mortgage advice. Make sure the mortgage downpayment is 20%, make sure that you pay bi-weekly, make sure that the length of the mortgage is not more than 15 years. Of these, which do you think it most important?
I’m going to talk to a mortgage broker tomorrow and I promise to report back (if you care). I don’t know so much about the U.K. property market and I’m not even sure what she will think that we can afford (maybe nothing?). But I do know that with the house we looked at, the yard was smaller and the house itself was smaller and I was totally fine with that. But it wasn’t in the country. Do we need to be in the country?
*1 I will ask said husband if we can make these available as templates that you can use too if you want