buying a London flat- doing the right thing?

ojosverdes

Thanks, DS1980!!:A

I can't see myself moving into another rented flat and pay even more then I pay now! :mad: Also I can see myself being really happy in this flat - it is a dream to me. :rotfl: stripped wooden flooring, original features, garden, 2 bedrooms, 2 reception rooms and separate kitchen. And in a nice area.:j

If in need I can always rent out the second bedroom.

Also I left some other cash - 5times the monthly mortgage payments - in a separate account with fix interest 6% but only matures in spring 2009. I won't use it on anything else then for some difficult times.

lynzpower

I personally agree witjh morg monster, this is an area Ive been watching a little too.
the key question I would ask myself IS

Is it EVER justifiable that a 2 bed conversion in clapham is WORTH that? Yes theyve taken an offer under, but would they have gone lower. they know they COULD have - thats why thery are snapping your hand off after 2 weeks, cos they KNOW they are not selling at the overinflated prices that even you are willing to pay and they wont get another offer as "good" as that for a while.

I totally agree with morg about the aspirational aspects of the area, and also agree its none too far away from downturn. One can easily see a few of those resturaunts & eateries on the high st closed - a few have gone already. clapham high st has quite high letting rates I believe.

ds1980

there will be someone along to shoot me down as usual but if you treat it as a home and not as an investment short term you'll be fine. concentrate on paying what you can off the mortgage and just enjoy it. It's your's it can be your kids and then their kids aswell?

your obviously fairly hard working and frugal as youve saved a lot of money. THe amount of people on here who say why don't these irresponsible people save and wait until they have enough. I think youve saved a lot of money and can do what you like with it. You'll have hard times and the next 3-5 yeasr will be difficult but i'm pretty sur ethat in 10-15 you'll be telling people it was the best thing you ever did.

i imagine you can get 500-600 for the other room which makes it cheaper than renting and its yours.

ill be back tomorrow to chuckle at the abuse ill get.

ha ha

dopester

ds1980 wrote: »

ill be back tomorrow to chuckle at the abuse ill get.

You're not worth it kiddo.

This market will re-educate you in time soon to come.

GracieP

lynzpower wrote: »

I totally agree with morg about the aspirational aspects of the area, and also agree its none too far away from downturn. One can easily see a few of those resturaunts & eateries on the high st closed - a few have gone already. clapham high st has quite high letting rates I believe.

I think I agree with this. I fear that areas which have been "up-and-coming" over the last decade could very easily change back in a prolonged downturn. Clapham is very nice, but a lot of it's appeal is from the lifestyle bars, restaurants and shops which may not survive a recession. When they go, what are you left with?

If I had to buy now for some reason, I would only look at areas which have been consistently pleasant. But maybe that's just because I'm broody and only want to raise my kids in safe area.:o

pickledpink

I would definitely buy it at that price! I know the area very well (used to live that way myself) and it's VERY desirable area.

And as you say, if you were to rent a room out your mortgage would be the same as what you're paying in rent now. You've already lost just under £130.000 on dead rent over the last 9 years', and with rents set to rise you don't want to pour even more money down the drainhole.

Another point to consider is the property itself. You have fallen in love with it, and if you let it slip through your fingers you've lost it forever...................

I know some people will advise you to wait....and wait....and wait.......and they'll say stuff like 'properties are going to keep falling for the next 4000 years - do not buy yet!!' - but those same people are the ones who are waiting like crows hoping to snatch a bargain for themselves!!!! If they thought property was such a bad investment long term, they may as well leave this forum, continue renting and take up a new hobby instead of obsessing over property prices.:p

You obviously love the place. You want to be close to your friends and work..........and it's a fabulous area. Remember; LOCATION LOCATION LOCATION. Most important factor in buying.

Plus, buying your own property gives you freedom and security for the future. You will not have to bow down to landlords demands.......or be turfed out on your ear at their whim.........have rent increases etc........you'll be Queen of your Castle.

pp

ixwood

I think you'd be mad to buy now and I'm not a Waiting To Pouncer and have only been negative on property since last summer (i.e not for the last 8 years!).

People judgement of value ave just gone out of the window. London is going have the biggest falls IMO. It's stupidly over priced/valued. You're buying 20% of a poxy flat for a heck of a deposit.

Wait and save, save, save would be the smartest move IMHO.

pickledpink

ixwood wrote: »

I think you'd be mad to buy now and I'm not a Waiting To Pouncer and have only been negative on property since last summer (i.e not for the last 8 years!).

People judgement of value ave just gone out of the window. London is going have the biggest falls IMO. It's stupidly over priced/valued. You're buying 20% of a poxy flat for a heck of a deposit.

Wait and save, save, save would be the smartest move IMHO.

Ixwood,

I bet YOU'D love to live in said 'POXY FLAT'!

You sound bitter and jealous. You probably rent a POXY hole yourself.

Have you seen the flat this lady wants to buy? NO - you haven't! So how can you call it a POXY flat??!!

The properties in that area are BEAUTIFUL - and the people who live there are professional, well-educated and well-mannered. I doubt they've ever heard the word POXY; that word belongs to sink-estate scum.

pinkshoes

ds1980 wrote: »

there will be someone along to shoot me down as usual but if you treat it as a home and not as an investment short term you'll be fine. concentrate on paying what you can off the mortgage and just enjoy it. It's your's it can be your kids and then their kids aswell?

your obviously fairly hard working and frugal as youve saved a lot of money. THe amount of people on here who say why don't these irresponsible people save and wait until they have enough. I think youve saved a lot of money and can do what you like with it. You'll have hard times and the next 3-5 yeasr will be difficult but i'm pretty sur ethat in 10-15 you'll be telling people it was the best thing you ever did.

i imagine you can get 500-600 for the other room which makes it cheaper than renting and its yours.

ill be back tomorrow to chuckle at the abuse ill get.

ha ha

I agree.

As someone who rented for 10 years, it's so wonderful to have my own home now! There are a lot of people on here that can only see a house as a pile of cash, so perhaps they have wonderful landlords who don't put their rent up, don't issue them with S21s, let them decorate etc...

If this is an investment for 10 years, and you've done your research, and haven't found anything else you want in the area you want, and you can afford it, then I would seriously consider it. If you had 2 kids, would the property be big enough?

Have you installed Property Bee and watched prices in your preferred areas?

Personally I'm not a fan of converted flats due to the noise, so check this one has been well insulated!

Just keep your eyes and ears open for bargains. I'd say now is quite a good time to buy, as sellers who NEED to sell are willing to accept pretty low offers in order to move.

neverdespairgirl

ds1980 wrote: »

there will be someone along to shoot me down as usual but if you treat it as a home and not as an investment short term you'll be fine. concentrate on paying what you can off the mortgage and just enjoy it.

you said something pretty much the opposite earlier in the thread!