Things wot I have done - Tactical Ninja
Jun. 2nd, 2011
10:51 am - Things wot I have done
Made an appointment to find out how big the absorbed twin on my cochlea is and whether I'll need a hearing aid.
Made an appointment to see if I'm suitable for laser-eyes.
(i win at transhumanism)
Run some numbers in contemplation of attempting to buy the house I'm living in.
In a display of fiscal responsibility that our government could do with copying, I am not actually going to commit to anything till the money is safely in my bank account. I'm old and ugly enough to know just how easy it is for the coffee to end up in your lap and on the keyboard instead of in your mouth, despite everything seemingly being in order. And spending money I don't yet have isn't in my vocabulary.
Tats No.1 Rule For Life: Keep your arse covered.
But naturally I like to dream. And since the moving to Hong Kong thing went on hold in favour of finishing my degree, and since finishing my degree happens about the same time as Dr Wheel's contract in HK finishes, it seems likely that I won't be flipping burgers in the Hong Kong version of McDonalds and instead will be here with a small pile o cash.
Previous musings have concluded that I want to do two things: buy some illusion of security, and have adventures. These are not mutually exclusive but this is somewhat of a zero sum game because of, you know, there being a sum involved. That sum equals a decent deposit on a house plus a bit extra. So I could feasibly do both. The question then becomes, how much of both do I want to do, and is the house I'm living in the best choice?
I talked with the landlords a while ago about this and they were amenable, so it'd be a matter of negotiating a price. I've run the numbers on deposit vs income vs what I'm already spending, and it's likely that I could do it but that the mortgage would be getting close to the top end of what I could afford.
The thing is, I've been paying X rent plus Y half-a-mortgage for 5 years, and this house has a flat attached that has been let for the entire time I've lived here. Polly and I have a pretty stable thing going on living-wise. The house is pretty sound and has all the things I want in a home - it's low-maintenance, sunny, warm and mostly dry (although I'd probably add a heat pump on the south side), and has off-street parking. I've lived in it for 2 1/2 years and know all its foibles and I still like it.
The way the numbers add up at current interest rates, depending on what the flat was leased for I'd probably be slightly better off paying such a mortgage than I have been just renting - mostly because of the extra I'll have through not paying the mortgage on Mum's house. It's not quite as close to town as I'd like but looking around at the equivalent (essentially 4 brm 2 bthrm), I'd have to lower my standards quite a lot to get the same nearer to town and the sublettability of the flat is a real bonus. Also, Crofton Downs is a developing area and the houses up the road are posh so it'll probably increase in value.
So, on face value it seems like a good plan, and would leave me with enough play money to get my eyes lasered (not negotiable), rebuild The Kid's computer, have a trip to see Dr Wheel, and put aside a little nest egg for having adventures when my degree is complete.
However, I'm flinching somewhat at the idea of a) being that much in debt and b) committing myself for the next 25 years, complete with projected reroofing, repainting and re-everythinging that seems to go with house buying. I could just bung the money on term deposit for a while but I've been thinking about this for a year already and most advice seems to be that rent = dead money, mortgage, while owie on the interest, equals progress towards a large asset.
I'm 41. By the time I paid off such a large mortgage I'd be retiring. And I'd be committed to earning X amount of money until that happens, and that's scary.
So I'm looking for a reality check here. Am I missing something? Should I do the dreaded open home thing to look at other houses that are comparable price-wise? My kid will be leaving home in the next few years, do I really need 3 brms with a flat attached (which is still a good investment regardless)?
TELL ME WHAT TO DO!