When you buy a house do you do the sums?
Discussion
I don't just mean the 'can we afford the mortage?' sums, but the "what if.." sums of what wil happen if you have an unexpected pregnancy, illness, bill or incrsease in costs (like fuel)?
I am just crunching numbers, and when it comes to projecting what will happen for me on retirement in 7-10 years time it tends to put a whole new slant on things, even if any mortage is paid off by then.
I just wonderd if others are as cautious or is old age getting the beter of me? What do you add into the calcutlaions wheh deciding whether you can afford to move?
Four Cofffee said:
I don't just mean the 'can we afford the mortage?' sums, but the "what if.." sums of what wil happen if you have an unexpected pregnancy, illness, bill or incrsease in costs (like fuel)?
I am just crunching numbers, and when it comes to projecting what will happen for me on retirement in 7-10 years time it tends to put a whole new slant on things, even if any mortage is paid off by then.
I just wonderd if others are as cautious or is old age getting the beter of me? What do you add into the calcutlaions wheh deciding whether you can afford to move?
If you take account of everything that could happen you'd live in a tent (and a rented one at that).I am just crunching numbers, and when it comes to projecting what will happen for me on retirement in 7-10 years time it tends to put a whole new slant on things, even if any mortage is paid off by then.
I just wonderd if others are as cautious or is old age getting the beter of me? What do you add into the calcutlaions wheh deciding whether you can afford to move?
Assuming you pay sensible money for it, if the worst happens you can always sell the thing.
The important thing is to make sure you can cover a mortgage if the rate goes up back into the range (and possibly beyond) what it has historically been.
Iain328 said:
Four Cofffee said:
I don't just mean the 'can we afford the mortage?' sums, but the "what if.." sums of what wil happen if you have an unexpected pregnancy, illness, bill or incrsease in costs (like fuel)?
I am just crunching numbers, and when it comes to projecting what will happen for me on retirement in 7-10 years time it tends to put a whole new slant on things, even if any mortage is paid off by then.
I just wonderd if others are as cautious or is old age getting the beter of me? What do you add into the calcutlaions wheh deciding whether you can afford to move?
If you take account of everything that could happen you'd live in a tent (and a rented one at that).I am just crunching numbers, and when it comes to projecting what will happen for me on retirement in 7-10 years time it tends to put a whole new slant on things, even if any mortage is paid off by then.
I just wonderd if others are as cautious or is old age getting the beter of me? What do you add into the calcutlaions wheh deciding whether you can afford to move?
Assuming you pay sensible money for it, if the worst happens you can always sell the thing.
The important thing is to make sure you can cover a mortgage if the rate goes up back into the range (and possibly beyond) what it has historically been.
Busamav said:
I just ask , can you afford not to 
btw , wtf is an unexpected pregnancy , surely there is no such thing , unless the Mrs is playing away of course
btw , wtf is an unexpected pregnancy , surely there is no such thing , unless the Mrs is playing away of course
Our third was unexpected. He made it through the pill. It turns out that the most efficient forms of pill can't be prescribed to diabetics.
You only have to look at him to know he's not from an away game!
Yes.
Our mortgage is about 60% of what the lender was prepared to give us, based on our salary. It is currently set up to overpay about 50% of the capital every month, which reduces the term from 25 years to 15. We can get these overpayments back should we absolutely have to for whatever reason.
I'm quite financially prudent, so I made sure we could (just about manage) to pay the mortgage, bills and other outgoings on either of our salaries should one of us be made redundant and are building up a good pot of cash should we need to call on it at a future date.
Our mortgage is about 60% of what the lender was prepared to give us, based on our salary. It is currently set up to overpay about 50% of the capital every month, which reduces the term from 25 years to 15. We can get these overpayments back should we absolutely have to for whatever reason.
I'm quite financially prudent, so I made sure we could (just about manage) to pay the mortgage, bills and other outgoings on either of our salaries should one of us be made redundant and are building up a good pot of cash should we need to call on it at a future date.
Four Cofffee said:
I don't just mean the 'can we afford the mortage?' sums, but the "what if.." sums of what wil happen if you have an unexpected pregnancy, ....
and when it comes to projecting what will happen for me on retirement in 7-10 years time....
I just wonderd if others are as cautious or is old age getting the beter of me?
Hang on, your close to retirement, haven't had a mortage before and you're worried about an unexpected pregnancy! and when it comes to projecting what will happen for me on retirement in 7-10 years time....
I just wonderd if others are as cautious or is old age getting the beter of me?
Wow... something doesn't add up there.RichB said:
Four Cofffee said:
I don't just mean the 'can we afford the mortage?' sums, but the "what if.." sums of what wil happen if you have an unexpected pregnancy, ....
and when it comes to projecting what will happen for me on retirement in 7-10 years time....
I just wonderd if others are as cautious or is old age getting the beter of me?
Hang on, your close to retirement, haven't had a mortage before and you're worried about an unexpected pregnancy! and when it comes to projecting what will happen for me on retirement in 7-10 years time....
I just wonderd if others are as cautious or is old age getting the beter of me?
Wow... something doesn't add up there.
Having had 20 odd years in the public sector where the next pay cheque was pretty much guranteed through illness, incompetence and to the grave via their final salary pension I went self employed about 9 years ago and the sums are now very different.
The pension calculation depends very much on predicting broadly what business will be like until 2020, and the old attitude that if we had £100 in the banmk at the end of the month that was OK has been replaced with trying to keep a 12 month reserve (which spunking the savings on the new place would leave a bit precarious). I am also looking at the long term outgoings on the new place which are fine now but might not be as easy come retirement especially if oil prices go up as it has oil heating and no gas supply.
The pregnancy threat was just an illustration, as we are thinking of buying a larger place with the outlaws so we are on hand, but when they are gone and their contribution to the bills goes what does that £4k annual oil fuel bill look like?
At the extreme, one consideration is finding somewhere capable of being converted into flats should the worst happen but I guess by that age equity release could be the answer.
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