# Future First Time Buyer



## GaryF1 (Jun 4, 2008)

Hey All!

Looking some vague advice \ guidance on the costs of owning your own place.

Just trying to work out in my head what sort of salary im going to need to get myself sorted in my own place, atm im a civil servant and contrary to whats generally thought the pay isnt great at the lower end of the grades.

The way the current property market is its looking to be about 100-125k for a decent apartment or semi detached place here in NI

Its the associated costs that I dont really have a clue about...like heating, electric, rates etc etc.

I was thinking in my head about £600 + a month spare once the mortgage and car was paid for...how far from the mark am I?


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## organgrinder (Jan 20, 2008)

It's a long time since I had a one bed flat but I'll try to help.

Council tax is the first cost. I would think a flat would cost about £800/£1000 a year (easier if you pay monthly by direct debit). However, it would be best to pick an address you like and then contact the local authority to find out what the Council Tax banding is for the property and how much that would cost a year. You should also get a discount of 25% if living alone.

Most flats/appartments have factors bills: these are to cover costs of cleaning and repairing common areas and just managing the property e.g. if you have water coming in, a phone call to the factor should be enough to get someone out to fix the problem. I have seen factors fees of anything from £50 to £300 a month but obviously a block of smaller cheaper flats will fall towards the bottom of this scale. Make sure there are no large works being considered on any property you are looking at otherwise you may get a large one off bill. Your Solicitor should help in confirming this.

Very often your property insurance will be included in your factor costs, so take that into account when comparing properties. If you have to get the insurance yourself it could be anything between £250 and £500. Over and above this you need contents insurance which will again be £150/£250 depending on the value and type of your contents.

Generally and in particular in new builds, the costs of heat and light aren't massive. If you budgeted on £50/mth that should be enough to cover it, especially if you have flats above and below you where you can benefit from some of their heating. Top and bottom floors tend to cost a bit more. If it is an old draughty flat you will be more.

The above should cover most of your outgoings and anything over and above that is largely within your control.


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## ryanuk (Jun 22, 2007)

id say about 900 per month with rent,gas,elec,food,tax ect..... maybe more.


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## Roan (Jun 13, 2007)

First of all factor in the costs of buying. You'll need at least a 25% deposit so you get a reasonable mortgage deal and also to avoid instant negative equity (especially here in NI), so say £25,000 minimum. Then solicitor's costs of at least £600, a valuation fee of probably £300 (home-buyer's valuation only - condition report or structural survey will be more). Moving costs (van hire? - £60 per day) and utilities connection charges (BT can charge £125 for a new line!). 

Based on a 2 bedroom apartment or house, Pheonix Gas will be £50-60 pcm, NIE will be £25-30 pcm, rates probably £50-60 pcm, buildings and contents insurance £20 pcm, Mortgage term assurance £10 pcm, TV Licence £12 pcm, plus you'll need to set aside some money every month for repairs/maintenance and/or a proprty service charge (£ depending on the age/condition of the property).

Factor in the costs of a cooker, fridge, freezer, basic furniture, new flooring, decorating, blinds/curtains, TV etc - even if you go to charity shops which is great value btw you're still looking at the best part of a couple of grand for all this. 

So you might need £30k at the outset and an extra £200 pcm for basic bills. Add in Sky/Cable TV, food, car payments/insurance/tax/petrol/maintenance, other travel, clothes, entertainment etc and £600 extra would be about right (depending on these figures).

HTH :thumb:

P.S. I would wait at least a year before buying. No point in buying in a falling market even if you are a cash buyer. In a year or so property prices may have stabilised but more importantly for you, mortgages should be significantly cheaper!


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## Gruffs (Dec 10, 2007)

Holy Crap NI is expensive.

I found that if i stretched myself completely thin, there would be no 'rainy day' money.

Make sure you leave a certain amount per month to cover extras. 

Don't forget all those little expenses when bugeting either. Car tax, insurance, fuel, food, medical bills, repairs to the household etc.

When you get your own place, it is much easier to stay in doing the ironing, Cleaning or watching the box. You would be amazed how much money you waste trying to get a little time on your own when you live with your folks. 

If you crave a social life, get your mates round to yours instead of going out.

When i moved out, i taught myself guitar to fill in the boring moments. Once you've paid for the guitar and a book, it's free entertainment. However, now i live with SWMBO i never get to play it


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## treaclesponge (May 29, 2008)

My monthly bills and outgoings amount to about £1200 inc the mortgage. Got a couple of luxuries such as broadband and sky+ but they add up to about £40 so not a massive difference.

Have you also thought about life insurance to guarantee the mortgage?


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## Roan (Jun 13, 2007)

treaclesponge said:


> Have you also thought about life insurance to guarantee the mortgage?


As I said above, it should be around £10-15 pcm depending on the size and length of the mortage term.

<pedant mode> It's actually term *assurance* rather than *insurance* since death is the only certainty in life... :thumb: </pedant mode>


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## GaryF1 (Jun 4, 2008)

Thanks for all the replies guys

Yeah at the moment I really wouldnt have the salary to cover all that, it really does seem that to have your own place as a single person you'd need to be on upwards of very high 20's \ 30k, which for someone of 20 is a tall order haha....or maybie it isnt? 

I think the only way for me is to save save save money over the next couple of years anyway, get abit deposit gathered.

Maybie i'll have to give up on this bachealor pad idea and get myself a full time missus... *sigh* hahaha


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