London first time buying

vicky04

I'm looking for some advice on first time house buying in london - either central or greater

I will have around £30,000 deposit (including my student loan which i have stoozed and plan to use as rates are so low)

I have no debts (only the student loan that i have stoozed), and will hopefully graduate on around £25,000-£30,000 to start (based on current job interviews and offers). I also have built up a positive credit rating from mobile contracts and credit cards (all of which i pay off in full every month).

I was planning on renting when i first move, but this seems like a waste seeing i have saved alot. Therefore is it possible to purchase anything in London for my circumstances?

Any advice is appreciated

BitterAndTwisted

Renting is never a waste as it lets you test the waters in different areas before you take the plunge. Take your time: there will always be flats to buy

brit1234

You will have to declare you are using your student loan as a deposit or you are commiting fraud. Far better to save and enjoy the price falls this year as rates go up and stimulas ends.

pie81

Assuming 3.5x salary plus £30k deposit, that will give you a budget of about £125k. However they may lend you less than this, given you have a student loan to service. You'll also have legal and moving costs to consider.

Could you buy in London for that price...? Possibly, but it would be a long way from the centre and in a less favoured area. Or a shared ownership place (i.e. you own some, the govt co-owns with you).

I agree with BitterandTwisted that, if you don't know London, it would be better to rent for a while (housesharing is cheaper than a place on your own) in order to check out which areas you like/can afford, before you commit yourself. Try renting for 6 months or a year. I very much doubt prices are going to rise much in that time.

BitterAndTwisted

At a £125k budget the choices would be strictly limited, possibly a one-bed in a less desirable area if it had an actual London post-code. One-beds are not the easiest properties to sell on. I'd be thinking about buying out in the suburbs on that sort of budget but the travel-costs would have to be factored in as those can be rather high, depending on how far out the property was.

laughingcow81

As others have suggested you would be better off renting somewhere (or housesharing) first, see how the job and travelling goes, and also see if you like the area.

Me and my OH rented for four years in the area before deciding to buy.

nollag2006

Where do you plan to work? There are still a number of areas that are reasonably affordable, and will pick up as the market rises.

Have you considered areas like Streatham or Crystal Palace?

I would strongly counsel renting for a while though in your target area to get to know the market and what you like.

Don't leave it too long to buy though - house prices are rising rapidly in many parts of London

Have a look here for some ideas:
http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E87490&minPrice=110000&maxPrice=130000&index=10

Paws

brit1234 wrote: »

You will have to declare you are using your student loan as a deposit or you are commiting fraud. Far better to save and enjoy the price falls this year as rates go up and stimulas ends.

Says who? :rolleyes: Presumabley she worked to finance herself through Uni, therefore it's just savings.

I agree that I persoanlly wouldn't buy right now, and for 125k you won't get very much, Greater London or a rotter yes but not in zone 1/2/3.

I'd never buy a 1 bedroom anyway, at least with a 2 bedroom you can take a lodger in when times get tough. :beer:

nollag2006

Paws wrote: »

Says who? :rolleyes: Presumabley she worked to finance herself through Uni, therefore it's just savings.

I agree that I persoanlly wouldn't buy right now, and for 125k you won't get very much, Greater London or a rotter yes but not in zone 1/2/3.

I'd never buy a 1 bedroom anyway, at least with a 2 bedroom you can take a lodger in when times get tough. :beer:

It's probably something worth discussing with a mortgage broker. I'd also go for a 2 bed if poss, but that's going to be difficult to find on this budget.

Good for you for getting onto the market so soon, by the way. That first flat could be a very nice little BTL in years to come

:beer:

nollag2006

Hi Vicky

It's also worth checking out Chickmug's excellent thread on what to offer:
http://forums.moneysavingexpert.com/showthread.html?t=1907059

As a FTB, you are in a very strong position compared to many purchasers

Good luck !

morg_monster

I seriously wouldn't buy so soon after finishing uni. I really don't think you will want to be tied down like that. Do you have any friends also moving to London? House sharing is fun and so much cheaper than renting or buying your own flat (and usually a lot nicer than manky student houses!). To be honest I found my first couple of years living and working in London just like being a student in terms of going out and having fun, but just with more money in my pocket! You need to get to know the areas, especially if you don't know London at all at the moment. There are some great areas very close to some hideous areas, and many hidden gems to discover.
Even just renting for 6m or a year will give you a chance to get to know your new life... Also it will make sure your job is definitely what you want to do, and gives you the freedom to change thinigs without having monthly mortgage payments making the decisions for you!