Stuff

So, my sister put me onto her financial advisor - pretty amusing considering I haven't actually got any finances to advise on. Laast night I went round hers and we all discussed the options as to whether, after all, it might be possible for me to buy her flat off her. And after a bit of back and forthing and various sums we came up with the following:


Total cost of the property: £128,000

To get the best deals on the mortgage I need to be putting down a deposit of 25 percent or more. That basically works out as a deposit of £32,000 needed to get the mortgage deals that aren't crippling.

My parents will lend me that, with certain conditions obviously, but they're prepared to lend me something towards the place.

So, that makes it a mortgage of £96,000 to pay off. This breaks down as:

£520 per month over 25 years or

£471 per month over 30 years.

On top of that I'll have the following costs per month:

Gas/Electricity £50 per month

Maintenance/contents insurance £50 per month

Council tax £66 per month

Other expenses (mainly Student loan) £58 per month

Which comes to a grand total of £754 per month outgoing on the flat alone if I do it over 25 years.

My wages each month are £1179.00

So I'll have around £420 per month to live on.

Think I can do it?


Basically I have no savings, what money I do have is gonna be eaten straight away in purchase tax and solicitors fees as well as the fee for the financial advisor. I won't have anything left for furniture or stuff like a cooker or washing machine.

What do people think? Is it sensible to buy my sister's place that I know and is a really nice place and good investment, or should I go for something cheaper, maybe not as nice, to start me off?

Opinions?