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How much excluding mortgage to live

(8 Posts)
BrentCross Sun 24-Jan-16 19:14:20

Ok so I have been under serious stress due to my job. It has made me ill and I can't continue. Will have around £10k savings and have 300k equity in house. DS costs effectively nothing as his DF pays for all his costs. My plan is to relocate to a place where I can buy a house for £100k, and buy a 1 bed flat to let which after ea coSt's should bring in £600 a month. At th moment I have an average lifestyle small car shop at market etc and reckon I spend net £13000 a year on everything except mortgage. So amd this is where I am looking for reassurance to maintain the same life where I am relocating(same cost of non housing living as SE England where I am now) I would need (£13000-(600*12)) ie £5800 a year net. Does this sound reasonable? I earn good £ now but really really can't carry on the stress is killing me.

specialsubject Sun 24-Jan-16 19:23:26

definitely time to change, life is too short.

but two big questions:

1) if a house is £100k, are you sure that flat would bring in that much? In my area (perfectly liveable part of the world) 2 bed semis are about £130k and 1 bed flats about £90k. But they bring in £400 GROSS at most. Then you have EA fees, hefty insurances, fixes, maintenance etc etc. And tax.

2) I live frugally but comfortably, but I could NEVER do it for £6k a year. One person doesn't cost half of two. I think the real essentials are the best part of £800 a month without a mortgage/rent.

BrentCross Sun 24-Jan-16 19:36:18

special very helpful. Have done my research and a £200 flat will bring in 6kish a year after tax. I know I can't "retire" on that, should have explained in my post but I was thinking of working for myself and reckon I could close the ca. £6k gap on that. I was working on £1000 pcm excluding mortgage.

sootica Sun 24-Jan-16 19:37:13

You need to factor in
One month's rent as a tenant finding fee for the agent
Tax on rental income
Periods where the flat is empty - I'd allow for a month a year
Worst case scenarios of nightmare tenants- have a decent capital sum to fall back on for legal costs and months of no rent if so!
Maintenance costs for two properties not one
You will have to pay ground rent and any service charge as that's usually the landlord responsibility

Owllady Sun 24-Jan-16 19:40:06

You will have 1k pm
No mortgage? Just you and your son?
I think that would be quite easy done tbh as long as you don't have high childcare and travel costs

Owllady Sun 24-Jan-16 19:41:46

Sorry I think I've misunderstood. You will have 650 a month?
It depends where you live?

specialsubject Sun 24-Jan-16 19:44:21

aha, i see. Not impossible. £1000 does allow haircuts and stuff, but clothing only when needed and only in the £20 trousers range. Car use needs to be minimised - but you'll have time to plan and shop around. I think it can be done.

rental costs: legal expenses insurance, rent guarantee, malicious damage insurance, home emergency cover, landlords buildings and contents, boiler service, gas safe cert (if you have gas, possibly not in a flat), plus agent fees.

future? Pension?

BrentCross Sun 24-Jan-16 19:46:36

Well 1k pcm implied making £350 net myself which I hope to be capable of. As I said net costs of DS are zero as his DF pays

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