Saturday, 10 September 2011
Well it is a sad fact that until I got first hand involvement, I didn't really appreciate the state of the housing market. My flat has now been up for sale for 13 weeks and the truth is that there have not been any viewers at all, not a one! Now I am faced with a bit of a dilemma. In 2008 before the property crash, the flat above mine (which is identical in every way) sold for £8000 more than mine is even on the market for. Now I am also prepared to take another loss when it comes to negotiating, but where is the cut off point? Should I reduce the price to get rid? When I consider that every month I stay here costs me £450 in mortgage payments (most of which is interest) it makes me wonder if it is important to get the highest price possible if it means 6 months of mortgage paying for a flat I don't want to be in.
Anyway, I am going to take the weekend to think about this and next week go and talk to my estate agent and see what is what.
Meanwhile I now have to pull my socks up and find a way to save a bit more money, I have to work out where more cuts can be made. I have been through my direct debits as a start and there is one decision there which I can't quite get my head around. 5 years ago I (perhaps misguidedly) took out British Gas home plan insurance for my boiler. I say perhaps misguided because my boiler was only about 5 years old at the time, so truly, in the last 5 years I have just paid out and never had anything for my money. I now realise that far more financially sound an idea would have been to put that money into a separate account every month which by my reckoning would have come to approximately £1200, more than enough money to cover any boiler costs. I suppose it is like any insurance, you get worried about not having it, it prays on your fear of something going wrong. Now in the future I would not bother with this boiler insurance, but I would, indeed, put some money into an account every month. My dilemma now is whether or not to stop this insurance for the rest of my time here, it really would be sods law if something happened to it now and I have to sell my flat with the boiler in perfect shape. What would you do?
Another way I can cut back further is my mobile phone. I need a phone for work, but I certainly don't need a new one and I certainly don't need the package I have. I have 1000 minutes a month and I recently checked with them and the most I have ever used in one month is 450 minutes. So for 2 years I have had a minimum of 550 unused minutes which I guess I am paying for. So it is time to change - my contract is up in the next 2 months, so need to start checking out new deals that don't provide a new phone, but do provide value for money.
Where else can I cut back? Any suggestions?
Times are hard, especially for a single man who has no-one else to rely on when things get tough financially. London is a drain on the finances and coupled with how much I loathe being in this city, I am finding it tough to not get very frustrated with my present housing predicament.