buying a London flat- doing the right thing?

neverdespairgirl

pickledpink wrote: »

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...................

2 bed Georgian conversions in Clapham aren't exactly unique!

ixwood

pickledpink wrote: »

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.

lol. Touched a nerve? OK, you're on. I bet you £10k that I wouldn't love to live in that flat (or any flat (or in London (Or any city/Large Town)))?

How much will it be worth in a year? Or 2? London has become grossly overvalued IMHO (London bubble on top of already stupid housing bubble) and will take decades to reach the peak again.

We're about to enter a recession, maybe even a depression, the financial industry is on it's knees, Credit/debt is contracting (the only thing that's kept our economy going) and vanishing at a rapid rate (a good thing) and the housing market is crashing. Why would you buy an expensive flat now?

I know London is a bit different in this respect, but I regard flats as starter places with downsides.

When prices come down, it;s the least desirable places that get hit the most, and to me, that's flats and apartments, especially studios. Who wants a flat when you can have a house? How many families would choose a flat given the choice?

I'm not sure that I'm really the one who sounds bitter, but thanks for that.

I like the way you assumed I didn't own because I think now's a stupid time to buy anything, let alone a millstone flat.

FWIW I own a lovely old detached stone cottage in a nice location 20 seconds walk away from beautiful unspoilt countryside.

Doesn't mean I'm blind to what's happening in the economy/market. I'll have made a paper loss on a paper gain. Big deal. I was seriously considering selling up last summer to bank the paper gains, but decided it was too much hassle.

LillyJ

meester wrote: »

It's not difficult to see the price falling to £250k. As others note, it's damned expensive to live in that area.

This is 19 minutes train ride away, same price (well, £395k, which looks priced to sell to me actually), 4-bed detached.

http://www.rightmove.co.uk/viewdetails-17961700.rsp?pa_n=1&tr_t=buy

£1800 mortgage on £3270 salary is quite high IMO, and there shouldn't be a premium for buying over renting, quite the reverse because you have more costs and responsibilities as an owner, and also are putting up £75k of capital!

May only be 19 minutes away, but there is a hell of a difference between buying in Clapham and buying in Woking!
That is like the difference between Islington and Watford (same time on train). Worlds apart.

Do you live in London?

LillyJ

Tassotti wrote: »

75K in savings and 57K per year, I would look at moving to the outskirts of the m25 and buying a beautiful 3/4 bed property with pool and gym..(They are there) Thats just me



Tass

Right move links to these sub £400k beautiful houses with a gym and a pool on the outskirts of the M25??

My parents live in said area and the house 2 doors down sold last month for £900k. They are ugly houses that were built in the early 80s and are like boxes (although they have got 5 bedrooms). Not at all "beautiful". Some in the street have pools, although the gardens aren't huge to start with so they then get a smaller garden.

For that price in my parents area you wouldn't get much more than a small house outside the town or a 2-3 bed flat.

For that you then have £3.5k per year season ticket costs to get in to London (even though it is only 25 mins to Euston).

To be fair you can walk to the mainline train station in about 7 mins (done it enough times to have worked it out!) so houses which you need to drive to a station are prob cheaper.

ojosverdes

Pickledpink,:A
It so nice reading your responses. :T Any chance you want to move back into that area and be my neighbour?

I think you are sooo right: this place is going to be my home!! I'm going to enjoy living there and no longer being anxious every year what the rent increase will be this time. Or moving every 3years as getting too annoyed with LL. As well as chasing the LL - with hardly any luck- to get repairs done!

I can't wait to be in charge.
I think I've thought things through.

Monthly income after tax................ 3270
Partners monthly income after tax....... 0
Benefits................................ 0 (company car – fuel for private use also – bupa insurance – all travel expenses (train- tube)
Other income............................ 0
Total monthly income.................... 3270

Monthly Expense Details
Mortgage................................ 1800
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 50 (I pay much less now- just allowing for extra)
Gas..................................... 100 (I pay much less now- just allowing for extra)
Oil..................................... 0
Water rates............................. 50 (I pay much less now- just allowing for extra)
Telephone (land line)................... 0
Mobile phone............................ 0 (company mobile phone)
TV Licence.............................. 0 (haven’t had TV in 9 Years and prood of it!!! Have a big stack of DVD’s though)
Satellite/Cable TV...................... 0
Internet Services....................... 0 (3G card on company laptop)
Groceries etc. ......................... 400
Clothing................................ 100
Petrol/diesel........................... 0 (company pays for it)
Road tax................................ 0 (company pays for it)
Car Insurance........................... 0 (company pays for it)
Car maintenance (including MOT)......... 0 (company pays for it)
Car parking............................. 10 (permit holder approx £100 pa)
Other travel............................ 0 (tube cards payed by company on expenses)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20 (ground rent and building insurance £250 pa)
Contents insurance...................... 13
Life assurance ......................... 0 (company pays for it)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0 (not every month)
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2963[/b]

That’s £300 left a month. And if needed I just won’t spend that £100 on clothes, or a bit less on entertainment. So could have £500 spare if I’m being careful.:cool:

Also will put some money aside for yearly skiing trip and summer holiday.

Thanks for the advise on renting the room out: it would be great if I can have £600 pm for that if needed!

Would like to do £100 a month of overpayment on the mortgage.

Also just got a 0% Credit card for 6months on purchases (£6000 limit) so I can buy some new furniture. (my rented flat is full of IKEA furniture 3years old – so in need of some new items) and will pay off in 6 months time or get a new Credit card 0%!) Had 3 in the last nine years and never paid a penny interest!!):money:

After paying £75000 on deposit and stamp duty I still have £9000 left in Cash Isa – so 5 times my mortgage payment in case I loose my job for being on the MSE too much!!!! :eek:

In the very very worst case I still have a flat in France I can sell (bought it 3years ago for €70.000) but that would be a shame as the rent covers the mortgage. Oh I shouldn’t forget to calculate in my outgoings: €400 on ground taxes a year I have to pay in France.

I’M GOING TO DO THIS!!!!!

pickledpink

ixwood wrote: »

lol. Touched a nerve? OK, you're on. I bet you £10k that I wouldn't love to live in that flat (or any flat (or in London (Or any city/Large Town)))?

How much will it be worth in a year? Or 2? London has become grossly overvalued IMHO (London bubble on top of already stupid housing bubble) and will take decades to reach the peak again.

We're about to enter a recession, maybe even a depression, the financial industry is on it's knees, Credit/debt is contracting (the only thing that's kept our economy going) and vanishing at a rapid rate (a good thing) and the housing market is crashing. Why would you buy an expensive flat now?

I know London is a bit different in this respect, but I regard flats as starter places with downsides.

When prices come down, it;s the least desirable places that get hit the most, and to me, that's flats and apartments, especially studios. Who wants a flat when you can have a house? How many families would choose a flat given the choice?

I'm not sure that I'm really the one who sounds bitter, but thanks for that.

I like the way you assumed I didn't own because I think now's a stupid time to buy anything, let alone a millstone flat.

FWIW I own a lovely old detached stone cottage in a nice location 20 seconds walk away from beautiful unspoilt countryside.

Doesn't mean I'm blind to what's happening in the economy/market. I'll have made a paper loss on a paper gain. Big deal. I was seriously considering selling up last summer to bank the paper gains, but decided it was too much hassle.

Whatever your opinion is about the London property market (and that's all it is - YOUR own personal opinion) you have no right calling the flat POXY. It makes you look unrefined, not to mention - STUPID - because you haven't even seen it!

As it happens, that area is one of the most desirable in London. It's a fabulous location, and that's why professionals choose to live there. There's a lot of doctors, executives, entertainers.............Fiona Phillips and Gordon Ramsay for example. Now why do you think we all the money THEY have they would choose to live there? Hmmmm?

What's more, the Victorian flats in that area are far superior to the average semi/terraced that you find all over Britain. The ones which look almost identical and often have paper-thin walls so that you can hear your next-door neighbour's every move!!:eek:

The Victorian flats in that area are solidly built (hence why noise is rarely an issue); they have beautiful features, high ceilings, original fireplaces....and are often bigger than the average semi/terrace. They have Wandsworth Common on the doorstep; some of the best restaurants in the country; good wine bars/shops/delis'.......and you're 3 minutes from the River Thames. Very nice!

So tell me what's POXY about that?:cool:

YOU for some reason have a bee in your bonnet about London; maybe you wanted to live there but couldn't afford the prices and had to settle in the sticks miles from anywhere.................remember LOCATION LOCATION LOCATION!!:p

ojosverdes

Thanks LillyJ,
I have been living in central London- zone 1 for 9years and won't like to move away. Also friends are nearby and family and friends from abroad come to stay a lot. Especially my brother with the small kids and my sister with hers. I love being central. They love it as well.

There is so much more charm in areas in central London than the ones on the outskirts. :rotfl:

ojosverdes

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?

Great to read you are enjoying your own place!!!:j

It's a bit too early for me to think about kids. But I think yes, when they are small I could have the second bedroom become the kids room. Would have 1 or 2 max anyway. I could move in 10y, so then the kids would only be 4-5y.
Also if I'm in the need for a bigger place I could rent out until a good time to sell.

But a bit too early- I would freak out my boyfriend if he reads this. We've been together nearly 2 years now - and as he keeps saying - I'm too independent. But one day maybe he'll make an honest woman of me???

The subject of moving in together has come up, but it's a bit too early. Also he has his own place and he understands I want mine. (independent and future security things as well as gues!)

harbinger13

A bit tight on expenses to earning - meaning just 500 savings - but do able.

Good Luck!! :beer:

pickledpink

ojosverdes wrote: »

Pickledpink,:A
It so nice reading your responses. :T Any chance you want to move back into that area and be my neighbour?

I think you are sooo right: this place is going to be my home!! I'm going to enjoy living there and no longer being anxious every year what the rent increase will be this time. Or moving every 3years as getting too annoyed with LL. As well as chasing the LL - with hardly any luck- to get repairs done!

I can't wait to be in charge.
I think I've thought things through.

Monthly income after tax................ 3270
Partners monthly income after tax....... 0
Benefits................................ 0 (company car – fuel for private use also – bupa insurance – all travel expenses (train- tube)
Other income............................ 0
Total monthly income.................... 3270

Monthly Expense Details
Mortgage................................ 1800
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 50 (I pay much less now- just allowing for extra)
Gas..................................... 100 (I pay much less now- just allowing for extra)
Oil..................................... 0
Water rates............................. 50 (I pay much less now- just allowing for extra)
Telephone (land line)................... 0
Mobile phone............................ 0 (company mobile phone)
TV Licence.............................. 0 (haven’t had TV in 9 Years and prood of it!!! Have a big stack of DVD’s though)
Satellite/Cable TV...................... 0
Internet Services....................... 0 (3G card on company laptop)
Groceries etc. ......................... 400
Clothing................................ 100
Petrol/diesel........................... 0 (company pays for it)
Road tax................................ 0 (company pays for it)
Car Insurance........................... 0 (company pays for it)
Car maintenance (including MOT)......... 0 (company pays for it)
Car parking............................. 10 (permit holder approx £100 pa)
Other travel............................ 0 (tube cards payed by company on expenses)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20 (ground rent and building insurance £250 pa)
Contents insurance...................... 13
Life assurance ......................... 0 (company pays for it)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0 (not every month)
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2963[/b]

That’s £300 left a month. And if needed I just won’t spend that £100 on clothes, or a bit less on entertainment. So could have £500 spare if I’m being careful.:cool:

Also will put some money aside for yearly skiing trip and summer holiday.

Thanks for the advise on renting the room out: it would be great if I can have £600 pm for that if needed!

Would like to do £100 a month of overpayment on the mortgage.

Also just got a 0% Credit card for 6months on purchases (£6000 limit) so I can buy some new furniture. (my rented flat is full of IKEA furniture 3years old – so in need of some new items) and will pay off in 6 months time or get a new Credit card 0%!) Had 3 in the last nine years and never paid a penny interest!!):money:

After paying £75000 on deposit and stamp duty I still have £9000 left in Cash Isa – so 5 times my mortgage payment in case I loose my job for being on the MSE too much!!!! :eek:

In the very very worst case I still have a flat in France I can sell (bought it 3years ago for €70.000) but that would be a shame as the rent covers the mortgage. Oh I shouldn’t forget to calculate in my outgoings: €400 on ground taxes a year I have to pay in France.

I’M GOING TO DO THIS!!!!!

:T You've certainly chosen a lovely area, Ojo..............it's got everything. You will be very happy there I'm certain.

Lucky you!!

:beer: