Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.


No announcement yet.

how much to spend and how much to keep back??

  • Filter
  • Time
  • Show
Clear All
new posts

  • how much to spend and how much to keep back??

    Hi friends and thanks for looking at my thread. I have a bit of a strange question and am seeking some advice. I am a 45 year old single male and have been saving for a property since way back when I was 17. Anyways...I now have £270,000 in savings and feel I am now ready to purchase my property (no mortgage needed thankfully) The thing is I don’t really know how much of the £270,000 I should keep back for emergency savings or should I use the lot?? I earn £1400 per month and am in secure employment (or as secure as can be these days). I would just welcome some advice and your thoughts on what sort of funds I should leave myself with. Once again thanks for looking.


  • #2
    Re: how much to spend and how much to keep back??

    It is an interesting problem and potentially, one that could attract lots of responses with no two opinions the same. For what it's worth, I would be tempted to look at it from a completely different angle by asking myself the following questions:

    1. What kind of property do I really want (and is it a "house for life")?
    2. How much, on average, would such a property cost in the area where I live or where I want to live?
    3. Is it within my budget without the need for a mortgage?
    4. If it is, would I have anything left over for: survey, legal/conveyancing fees, stamp duty (the holiday for first time buyers purchasing a property for £250k or less comes to an end very soon), removal costs, building and contents insurance, disconnection and reconnection of utilities, purchase and installation of new white goods if needed, carpets and curtains; and a contingency fund for any repairs, emergencies or other unexpected costs associated with moving home.
    5. Do I still have any money left over and is it enough to give me peace of mind?

    The middle three questions can be pretty much settled by some online research but only you can determine the answers to the first and last questions, particularly as you clearly have developed a prudent and lifetime habit of living well within your means. I am guessing that you will always need to have something tucked away for a rainy day.

    I am sure that other people will have other ideas to offer but I hope this helps a little. Good luck with whatever you decide.


    • #3
      Re: how much to spend and how much to keep back??

      It depends on where you are at with your life really and what you want to do with your time and money.

      Personally I would take out a mortgage for an amount which will not take more than one third of your income to support and keep the rest. My reason for this is that money has never been cheaper to borrow and you get little or no interest if you keep your money in the bank so you may as well invest it in something else.

      If you have no other plans for the money then put it all in the property, you can always borrow it back if you need it but as you have saved that much it seems a shame not to put it to work !
      Adam Long



      • #4
        Re: how much to spend and how much to keep back??

        Hi Chris,

        I assume you have an aversion to mortgages, or maybe to debt in general, as you have taken the trouble to spend so much time saving a large amount of money when you could easily have purchased a property years ago by using your saved capital as a mortgage deposit.

        So presumably you are a cautious individual which would generally suggest that you will not be comfortable using all of your savings to purchase a property and leaving yourself without an emergency fund (the fact that you are asking the question also suggests this).

        How much to keep back is really down to personal preference, everybody has different comfort levels regarding savings & debt. You also might find it useful to consider how much of your £1,400 income you need to live on once you own a property (as your costs are likely to increase, even if you don't have a mortgage) as this will determine if you are able to continue saving after buying a property.
        Property for sale in Torquay