Is this financially sound

Alan2020

Chinkle wrote: »

This is somewhat of a gamble:

Firstly that interest rates will be 'here or hereabouts' - there's only one way for interest rates right now
Secondly studios can be difficult to sell as nobody really wants something that pokey if they have other options
Thirdly you are assuming the £200K house won't rise in price
Fourthly, realistically how much higher will your salary go? If you're looking for a £140k mortgage you'd be looking to earn £45k+
Fifthly, as already mentioned if BTL your studio you'll only be able to do so for 75% of the value and demonstrate the rental generated after all costs covers 125% of the mortgage

Thanks, lots of good points as you point out, more thought needed!

I wanted to see the sellability of studios, are they very hard to sell

Alan2020

Chinkle wrote: »

Would your quality of life be much better in a dingy, pokey studio?

Well I thought it should be better than a house share, but I may be wrong, just want to see what other peoples experience on this :beer:

Alan2020

FTBFun wrote: »

I think you should look at the house share route. I've had to do it for the past 5.5 years before buying.

If you're careful you should be able to find one where your needs as a professional are taken into account - I've managed to work at home and also study for professional exams whilst living in flat shares.

I think its a better idea then buying a bedsit first.

Thanks for sharing your experience, do you know of any websites that advertise such arrangements? :beer:

B.E.N

Alan2020 wrote: »

I am saving but it is not fast enough and I am becoming an old git :rotfl:


To be honest, I hate the words 'property ladder' - it's a mis-leading myth put up by Estate Agents and naff TV shows and is ludicrous.

The way house prices have been going over the last 10 years mean that the idea of buying a small property then 'trading up' with the equity built up is illogical - the price of your property on 'the first rung' may have increased by 50%, but so has the price on the bigger property that is on the 'second rung'.

Try not to get caught up in the mania of property and buy in to anything - I have seen bedsits in awful places, for sale on Rightmove for £60/£70k. The market is only now adjusting to the fact that we've had a property bubble where prices were overinflated. Don't buy a lemon that you won't be able to sell in a few years time.