Buying a House in London

Idonex

Blacksheep1979 wrote: »

So you're completely spouting rubbish then as you have knowledge that it doesn't take that long - also docklands is a little bit of a special case as is out of the way.

Guess it depends. I live in Zone 2 and it takes anywhere from 1hr to 1.5hrs to get to work in Zone 1. (Hackney to Paddington with no Overground until June )

I guess the answer is the OP needs to at least base his location around where he'll be working, as commute times can differ drastically, even over the same miles travelled.

As for some of the other areas. Peckham & Mitcham, no way, East Dulwich, maybe. Norwood..hmmm. don't really like the area. I grew up in S London and that area (Norwood, Croydon -eugh, and Crystal Palace) has always been a dump. Although with the new East London line taking you straight into the City maybe things will change, i doubt it though as it's still a commute to London and generally people who want to commute want to live in nicer places like Kingston & Richmond

St00zer

Would people recommend I bought a flat in a nicer area and then eventually moved up the ladder with a house rather then buy a house in a not so nice part of London?

Or what if I bought a house in a not so nice part of London and rented it out and then in 2-3 years sell up and with a bigger deposit buy a house in a nicer area?

What do people think? What would you do?

RacyRed

Blacksheep1979 wrote: »

So you're completely spouting rubbish then as you have knowledge that it doesn't take that long - also docklands is a little bit of a special case as is out of the way.

Nope - the average journey time info I gave is based on the journey times of all sorts of people I know living in various areas and working in the city, west end or docklands - the three main areas. Faster journey times are possible, but can they be relied on if you want to make sure you are not going to be late?

Walking to and from Bow to Docklands in 45 mins was only possible if I walked the canal tow paths - not recommended on dark evenings, which is when the transport gets full. If I went in late or early I could do the journey in 20 mins or so on the bus, but NOT during the peak rush hour, it just didn't happen!

If your home and workplace are both close to the tube/train and you don't have to change lines then that is great, a fast journey is possible, but is it really the norm? Living near Highbury and Islington and working near Moorgate was heaven, going in on the train in no time at all, but in all the years I worked in London I wasn't often so fortunate.

I frequently did a journey where the actual tube travel time was 15 mins, but it often took me 20 minutes to actually get into the station and get on a train becuse they were heaving by the time they arrived at the station (Mile End) I got on at.

Ask around if you think I'm wrong, I'm not grinding axes or spouting rubbish here, just trying to give realistic rather than optimistic information.

Do you travel by train into Moorgate Blacksheep1979? That would explain your great journey times. I'd be really suprised if you have such a short journey on the bus or the tube.

St00zer, the renting option wouldn't really work because the capital increases in the house you bought and the property you might want to buy would be fairly proportionate, unless you were able to overpay on your mortgage so increase your deposit that way?

Corona007

There has been some good advice posted so far.

The golden rule about moving to London when you don't have ties to any specific area is always, always, always rent first. Find an area you like and feel comfortable in before you commit yourself long term. I've lost track of the number of people I know in London who moved to an area they don't know well and find they regret it (e.g their commute is ok on paper but a nightmare in real life, the area is dodgy at night etc etc).

A big mistake people make is choosing where to live based on the post code alone. London is very diverse and a nice upcoming area can become the complete opposite by walking one street away. Take SW19 for example - it famously covers Wimbledon tennis club and the surrounding multi-million pound mansions. But SW19 also includes South Wimbledon which whilst not the worst area in London is predominately council estates and has a very different character.

If you really want to buy, the best advice that I can give is to plan your transport links very carefully. They are more important in some respects than the house itself. You will pay more to be near a tube / main line train but it is worth every penny when you factor in the amount of time you will spend commuting over a year. One change on the tube might not sound much but in reality it could add 10 mins each way, every day on your door to door time. That could grind you down over time but you won't know this until you have spent a few months regularly doing it.

MrsE_2

RacyRed wrote: »

st00zer, no matter where you buy in London within your price range you will find yourself in very close proximity to "rough" areas. In London you are either very streetwise or incredibly rich, there is very little left in between..

"Most" residential areas of London are a street or two away from a crap area.
East London & South East London are the pits.
South West London is the best quarter - but possibly the most expensive.

St00zer

RacyRed,

Why would the renting option not work? I was thinking along the lines of buying a flat with the aim of recieving enough income to pay the mortgage. In the mean time continue to save more money on the side and then in 2-3 years time sell the house and use the proceeds plus additional savings and hopefully a few payrises to buy an even larger house in a nice area?

Would this not work? What do others think?

My biggest concern is being trapped because house prices take a tumble.I think it is pretty clear to everyone that house prices are overpriced and being really honest I think it will only take interest rates to rise a few % points and then the market could take a tumble. I just don't think the policy makers will increase interest rates because they know this very fact. But eventually people will pay of enough of their mortgage to make it affordable and inflation will errode away the debt which will allow higher interest rates to be more manageable.

The other option I am considering is to just keep saving and then buy a nice house in a nice area £3-400K but who knows where house prices will be when I reach that point!

What would others do? Would be interested to hear others views...thank you for all the advice.

MrsE_2

St00zer wrote: »

What would others do? Would be interested to hear others views...thank you for all the advice.

As a born & bred ex Londoner, I would NEVER live there again.

DH commutes into London everyday (as do half the workers in Surrey).

Corona007

RacyRed wrote: »

If your home and workplace are both close to the tube/train and you don't have to change lines then that is great, a fast journey is possible, but is it really the norm?

Spot on RacyRed, some people make the mistake of looking at the tube journey alone as their commute and forget the walk or bus at each end. My tube ride is 20 mins but it usually takes me 40 mins door to door once you factor in the walk to the station, the escalators, a few mins to wait for the next train and then the same at the other end etc etc. And I live 0.6 miles from a tube which in London terms is considered close.

st00zer, another thing to consider is where you need to get to outside London. If your family are all up North then it might rule out SW or SE London as it will add a significant amount on your time to travel there. Equally if they are along the M4 corridor you should discount NE London.

Corona007

St00zer wrote: »

Why would the renting option not work? I was thinking along the lines of buying a flat with the aim of recieving enough income to pay the mortgage. In the mean time continue to save more money on the side and then in 2-3 years time sell the house and use the proceeds plus additional savings and hopefully a few payrises to buy an even larger house in a nice area?

Would this not work? What do others think?

Bear in mind that in London there is a chronic shortage of quality "family" properties on market. Flats are plentiful and you will find a nice two bed flat in zone 2/3 for £250k but to find a 3 bed house of equivalent standard and location you will be paying significantly more - much more than the equity you'll earn over a few years. You'll either have to compromise on location or quality.

St00zer

Corona,

I think you hit the nail on the head. I have actually always been agaisnt buying a flat in London but have recently come round to thinking it is not such a bad idea providing it is very central london.

The general problem with flats is they are aplenty....and most people eventually want to buy a house so inevitably move out.

Therefore those that can skip the flat phase generally end up staying in their house for a very long time which works out very well in the long term.

I think the reality is if the housing market were to crash then houses in general will more liklely retain their value whereas flats would be vulnerable to price slumps unless the flat is in central london where there will always be demand.

I don't think I would ever buy a flat in the outskirts of London. But would certainly consider a house.

I am currently thinking North/North West London...

Finchley, High Barnet, Mill Hill, Hendon, Edgware, Wembley, Harrow and Pinner

Very pricey areas I know but I think very desirable to live. Although these areas do have their bad parts as with most other London boroughs.

I am trying to figure out a strategy to make more money to make the above possible.........

I am starting to think it is pointless buying a property in a crap part of London as it could turnout to be a total nightmare and may end up struggling to sell it and then eventually sell at a low price just to get rid considering how illiquid property is.