What would you do? Does this sound manageable?

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Fallen in love with a property which is over budget, quite a bit over budget! I need to work out if this is possible or if I need to be more realistic.

For context, the house is a doer upper, it will need a new kitchen, both bathrooms will need to be replaced and things like flooring which are 30+ year old carpets (even in the kitchen and bathrooms). The property is 200sqm. Windows are another big expense as they definitely need doing.

Take home pay is around £4500pcm but should go up to £5000-5500pcm in the next 12 months.

House has been on the market with no offers for 5 months so I’m hoping to put a cheeky offer in and if accepted, the mortgage would be £1300-1500. Bills would be unknown but CT is also extortionate.

Does this sound doable or do I need to find something smaller/ less expensive?

You say yourself it's over budget. Sometimes you just have to let it go.

Could you afford to do it up?

It would have to be in stages. If something desperately needed to be done, yes, it could be done. Other than gas, it could all be done DIY so that does help keep the costs down.

It ticks every box so before I say it’s a definite no, I want to think it through properly. It’s slow around here and there are hardly any houses coming on to the market. I don’t have a tonne of options.

You'll inevitably uncover something you can't do. I'd be very nervous if you don't have a decent cushion for when something crops up.

Could you offer your budget?

Sorry but that would be way too much for me. What interest rate are you basing it on?

And how many years?

Am I missing something? A third of your take home salary on the mortgage is a normal amount surely? Dd and her dp’s take home is similar and their rent higher - they’re certainly not on the bones of their arses each month!

Have you done a budget -
mortgage
utilities
insurances
phone
Travel expenses
food
tv
loans
Fun/travel/gift etc

is it doable?

When you say “uncover something you can’t do”, what do you mean? Uncover an issue that needs fixing?

It would be a very cheeky offer! I wish the EA hadn’t sent it through.

4.5% and 35 years

Would you be happy to spend so much of your time and money on your house? And not on other good things in life?
and will you have the energy and time, if you’re working full time , I assume, on a well paid job, to afford your home.
is it the works, life balance that you want, with family wants and needs covered.
its not just the actual money that you’re committing to here.

This is good to know! Peoples reactions have made me think this is not so normal?

That you can't DIY.

If they knew your budget and sent it they could be aware they might accept lower (or they could just be not thinking).

😬 my opinion is you would be crazy to do this.

All the fixed costs which can easily be transferred, yes - phone, food, internet etc (easily done and already in an excel spreadsheet).

Utilities - how could I even estimate this?

Mortgage and insurance I have run through online calculators so I have a rough idea on those.

I think so - I know it’s bloody hard work. This won’t be my first rodeo! There have been moments of physical, emotional and mental exhaustion but I look at my beautiful home and feel nothing but pride. I would hope to have a similar experience the next time around but with more experience this time!

Google what would a rough estimate for electric etc I a xXsized house X age in X town . It will give you a idea.
you would ideally want some spare money each month to save / deal with unexpected costs

Upper end heating and electric costs £250pcm according to Google but that seems cheap to me!

There's a lot to weigh up.

Does it need the technical stuff done (drains, roof, rewire, plumbing)?

Kitchen and Bathroom. Are they broken or just not to your taste?

I would need a better look at everything to say what needs doing but from the very brief viewing, the roof looks ok, the windows need replacing, they are blown in places and the upvc looks very tired/ mouldy and just old. The bathrooms and kitchen are very old. Could definitely live with the bathrooms for a year or two, they are basic so not much to go wrong (hopefully) but the kitchen is fairly non-existent. There are three cupboards knocking around in this fairly large kitchen - it’s very odd! I’d make do for a few months until the layout was adjusted.

If you’ve done a doer upper before, why are you looking at a 35 year mortgage term? Surely you’ve been paying in for some years? Or is it the only way you’ll be able to afford it? What sort of deposit will you be putting down?

what is your family situation? Are you single, no kids? Is that likely to change in the next 10years or so? All of these will affect your likely expenses or change in financial circumstances.

£300k equity but realistically, I would need a bigger mortgage to get a house worth moving to. It’s expensive and then add on stamp duty etc.

I’m 30 so yes, life could change in the next 10 years!

What are the percentages you would work from? It would be below the 50% based on the 50/30/20 model.

Its definitely doable. It just depends how much money you want in your pocket each month.
My mortgage is 1200 and my take home is about 4k