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  • FIRST POST
    • Mark1987
    • By Mark1987 9th Oct 16, 6:05 PM
    • 63Posts
    • 1Thanks
    Mark1987
    First time buyer in London with 160k deposit
    • #1
    • 9th Oct 16, 6:05 PM
    First time buyer in London with 160k deposit 9th Oct 16 at 6:05 PM
    Hi everyone!

    I'll try to be short and direct without telling you the story of my life.
    I'm a 29yo single professional guy, currently living and working in west London. I think it's time to start looking for something to buy (I spend £1200 a month for the rent which means wasting a lot of money).

    My savings are £160k and my current salary is £45k/year, which could raise to 50-55k within one year.

    Considering 2 bedrooms properties, how would you move into the market? What property should I consider to pay a reasonable mortgage considering that I am single?

    This would help me to have a generic idea since I don't know much about properties.
    If anyone knows London, I would like to consider areas from Staines to Isleworth/Brentford.

    Thanks!
Page 2
    • HouseBuyer77
    • By HouseBuyer77 10th Oct 16, 10:20 AM
    • 756 Posts
    • 716 Thanks
    HouseBuyer77
    Bear in mind that once you've got a house you want a reasonable amount of easily accessible savings for rare, expensive repairs/mainteance and need to budget for ongoing maintenace and such.

    So avoid spending all of your savings on the purchase along with the biggest mortgage you can get. Due to the size of your deposit this shouldn't be too difficult.
    • Mark1987
    • By Mark1987 13th Oct 16, 2:19 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    Just move to Bristol, if you're half decent in IT you'll earn 40k, and that sort of deposit will get you a place in Clifton. And no need to consider getting a lodger!
    Originally posted by Bluebirdman of Alcathays
    I was considering to move out of London but I am scared of the idea that probably I would be bored after a while. So I am not sure to buy a property anywhere else.
    Bristol is lovely and there are many IT jobs, it could be an idea...

    Is it really worth to buy a flat above 400k in my situation?
    I mean, there is the risk to pay a very long mortgage + maintenance costs for something that it will never be 100% yours.
    What is a reasonable amount of years for the leasehold to buy a flat? Is there a risk that when you are still paying the mortgage you won't be allowed anymore to renew the leasehold so at some point when you will pay all the mortgage you will have something that is going to expire and it won't be yours anymore?

    To me, flats are a good option if you are going to pay them in a reasonable short time and possible resell them, otherwise I would go for a house. What do you think?
    I would like to avoid to live in a small flats with kids when I am 40-50yo and still paying that mortgage.
    • ap1985
    • By ap1985 13th Oct 16, 2:44 PM
    • 265 Posts
    • 105 Thanks
    ap1985
    I lived in London for 11 years and moved out in May this year as I realised that I wouldn't be able to get a nice enough property on my budget....I now live in the Midlands and I don't miss London at all. I managed to get a good job albeit a slight pay cut but do not regret my decision at all.
    • bownyboy
    • By bownyboy 14th Oct 16, 12:52 AM
    • 318 Posts
    • 375 Thanks
    bownyboy
    I echo what others have said. With that much savings I would move to Bristol. Its a great city, vibrant, young, lots going on, IT / Media jobs. Housing stock is much cheaper, you get a house and then a lodger to help with mortgage.

    You will get so much more for your money and quality of life will be streets ahead of London (no 1 hour commuting!).

    I know London can be seductive, I know as I did it, however it was much cheaper when I did it!
    early retirement wannabe
    • bownyboy
    • By bownyboy 14th Oct 16, 12:57 AM
    • 318 Posts
    • 375 Thanks
    bownyboy
    Is it really worth to buy a flat above 400k in my situation?.
    Originally posted by Mark1987
    I think you are answering your own question. You are realising that 400k is a ridiculous amount for a flat. You will not get bored outside London, what do you think everyone else does? Bristol, Leeds, Manchester, Edinburgh, life goes on. London is not the be all and end all of the world.

    I say this as someone who graduated and went straight to London in 1997, but it was much cheaper then. I am hiring graduates now on £35k who can't afford to live as they are paying £1200 per month each for a flat share.
    early retirement wannabe
    • Mgman1965
    • By Mgman1965 14th Oct 16, 8:42 AM
    • 52 Posts
    • 58 Thanks
    Mgman1965
    If you buy a leasehold flat don't forget to factor into your outgoings ground rent and service charges which can be eye-wateringly expensive.

    Funny how these get left off EA's details and if you don't ask they forget to tell you about them !!!!!!!
    • Mark1987
    • By Mark1987 14th Oct 16, 6:24 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    I echo what others have said. With that much savings I would move to Bristol. Its a great city, vibrant, young, lots going on, IT / Media jobs. Housing stock is much cheaper, you get a house and then a lodger to help with mortgage.

    You will get so much more for your money and quality of life will be streets ahead of London (no 1 hour commuting!).

    I know London can be seductive, I know as I did it, however it was much cheaper when I did it!
    Originally posted by bownyboy
    I am considering Bristol but no way that I will share my new house with someone. I'd rather eat plain rice all the time to save money.

    I am not sure about moving out of London because I am used to change job very often and in London this is very easy. Somewhere else probably I need to stay in the same company for many years and I wouldn't have many opportunities to change or progress in my career.
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