properties and their service charges

14 Jan

london 3.10pm 10C a bit of sun/cloud. monday 2019

i got a letter from the housing estate saying they have now renewed the building insurance for another 5yrs, with a new contract, having put out for tender when the old one expired. and the amount i have to pay is £265.70 a year. the estimated annual cost  is £2,362,417 a year to insure the whole estate. it is the rebuild insurance, in case of destruction of the building, so is quite unlikely. it is such a lot of money isn’t it? but maybe there is also other damage that it insures against, because there is a  £100 excess per flat. they mention terrorist damage, and subsidence, so those are the other things that is included. anyway, that is the incidental cost when u own a property and it is a compulsory thing, every estate have to have building insurance. i am thinking thank goodness it is not a house i have got, otherwise i have to pay all of the building insurance for a house and that must be quite a lot of money. as it is , the cost is spread out and shared for all of us living in this housing estate so it is manageable. though they did say it is likely to go up year on year. it will all go into our yearly service charge.

i still think it is quite a lot of money to pay for insurance of this kind. i mean it is rare for a whole block to burn down. grenfell tower is an exception it seems, and yet the building insurance do not cover their rebuild… why is that? isn’t that exactly the kind of situation which the insurance is meant to cover?? you can see how lucrative the insurance business is , can’t you? 

it is still better than renting i suppose. this 2bd flat i am in will most probably have a £1800 a month rent and i certainly wont be able to live here if i have to rent it. as it is i can only live here because i own it outright,  rent free, and mortgage free. 

am seeing a tv program, a place in the sun, about flat hunting in murcia.spain.  their budget is £55,000 which makes me marvel at  how cheap it is , quite nice flats too. they are seeing a 2bdroom flat for £57000 now. and later they are seeing a 2bed bungalow in balsicas, furniture included for around their budget price, but it is inland. its a new build and no one lives there since it was built. this program is recent, 2018/19 and still got such low priced properties. or maybe brexit is making those places hard to sell, and so if u dont mind the uncertainty of brexit, there might be bargains to be had.

no  wonder so many brits are buying there, but  brexit is coming so people will have all that being denied them…  people must be looking back on all this with nostalgia and regret i bet. but if my experience with my flat is any indication, it is likely that once u have bought the place, they will start to hike up the  service charges and insurance and all that will rise and you will be locked in and have to pay those charges.

at the end of the program, the buyer decided to rent one of the apartments she liked for 6months, so that she can live there and get to know the area rather than make an offer. (pity they did not say how much she rented it for) perhaps that is the best thing to do, after all why bother to buy when it may not be possible to live there all year round when we brexit, so just go there for a few months holiday by renting a place without all the bother of the cost of owning property there.

the most important factor is that health care in europe may not be free to the brits living in the eu countries once we brexit. though to my mind all it needs is the uk govt saying they will reimburse the EU country for the costs… but it will be dangerous to say so, because then the costs will be very large as they all bill the uk and  inflate the charges.

and health costs can be very high.

when we age , and i am using my own experience as an example, we use more health services. right now, my doctor has been taking blood and doing tests to see if my markers for prostate cancer has dropped. it had been high when i got that bladder infection. and now he has said he will refer me to have a abdominal scan of the prostate. before he decides whether to refer me to the hospital for a specialist in prostate cancer treatment. it might all turn out ok and the scan shows no growth and so no need for any treatment… i hope so, but there are all these tests to be done. imagine the costs if it were done in a spanish hospital and they bill it back to the govt. not the first time that i am glad for the nhs.

 

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