Should I Buy, Rent Or Commute To London

BECKS7_2

I am starting a new job in London at the beginning of February, and am unsure of what to do with regards to living down there.

My options are:
- commute daily from Leamington (1hr 20) COST £4200/yr
- commute daily from Coventry (1hr) COST £6200/yr
- rent somewhere, although only need Monday - Thursday nights
- buy somewhere

Now i know buying in one sense makes the best financial sense, i don't think there's much around under £225k anywhere central. Therefore i'm after some suggestions, i'm not too keen to be out in the sticks somewhere, as otherwise i'll spend all my time on the tube, and in which case i could commute from Leamington / Coventry.

Any suggestions of perhaps new build apartments / studios, where you can get a 5% deposit paid, etc would be good. Equally suggestions of where to look on the web.

Thanks

F_T_Buyer

If it's a new job, shouldn't you work for 6 months before you consider buying?

By then, you might have a better idea of the good areas and the rental market.

ukslim

I had to think about the same thing -- although the job in question was completely hypothetical, and remained so.

It depends very much on you and your circumstances -- if you have roots (family, friends, partner's job, etc.) in Leamington, if a London social scene attracts you, etc.

Think about what the commute would really entail -- not just the time on the train, but whether you'll be travelling at a time where you can expect to get a seat, how you'll get from Marylebone to your office (I decided the best bet would be to get a tatty second hand push bike and leave it at Marylebone).

Also, see what your employer would think about working during your commute (i.e. could you come in late / leave early on the understanding that you were busy on your laptop on the train), or working from home one day a week.

Personally I'd quickly start to resent the 13 hours/week travelling without those kinds of concessions. Also, find out the cost of the season ticket and include that in your calculations.

30 minutes train/tube journey gets you quite a long way out into reasonably pleasant / cheap areas of London. I have a friend who has a pleasant commute by train from Ruislip, for example.

Don't discount buses or even the most cost effective transport option, walking! Another friend of mine lived in Blackheath, and would routinely walk to and from her job in the Square Mile -- no tickets, and it saves on gym subs too.

F_T_Buyer is right: sort out something temporary for 6 months and find out about the market, your work environment, where your colleagues live, etc.

tanith

Whereabouts is your new Job.. maybe get more replies if we knew a little more ......

Alan_M_2

See if you can find a flat share or similar, get youself aquainted with your job and the area then you can make a far more educated decision.

MascaraMinx

I would commute initially until you have settled into your job and got to know the areas where you could feasibly move to. For £225k you could possibly get a flat somewhere in a Zone 3 region (I'm talking tube zones) - any nearer in and it's likely to be a scary area for that price. Assuming your work is based Central London this probably still means a 30 min commute to work on the tube which would also cost you about £90 per month (it may be more - I haven't lived in zone 3 for ages!). So basically what I'm saying is if I was you I'd hang fire for 6 months or so until you know are able to make an informed choice.

lynzpower

If youve never lived in london I certainly wouldnt buy here from the "off".

Some people actively hate london ( not me :A) and you could end up being one of them with a property which is A) costing you a fortune to live in b) will cost you money and hassle to sell

There are areas of london i wouldnt live, but you wont know that or have those sort of preferecnes without living here first, likewise, some areas are great for transport say to waterloo but pants to marylebone.

Only living here and working out the citys foibles for yourself will work, I strongly suggest renting, in a houseshare make some mates here and then see what happens. Personally, I wouldnt commute, as Im too tight for those crazy season ticket prices!

BECKS7_2

Thanks for the advice so far.

I have now decided that commuting from Coventry is also a possibility due to the journey time, plus it's only a couple of stops (no changes) on the Northern Line to Angel.

I'm not too keen to live outside Zone 1/2 as if i'm going to spend 30-40mins commuting each way every day, i feel i might as well commute from the Midlands.

I'm swaying towards buying somewhere, even though i don't need it at weekends, as i feel it's a waste to rent. I'm thinking more along the lines of an interest only mortgage, 30year term. I just want to find a half decent studio / 1 bed flat somewhere central. Any suggestions on new builds, or particular developments would be helpful

Thanks

Bargain_Rzl

I hope you don't mind me asking, but why an IO mortgage and why a 30-year term? The combination of the two suggests to me that you're thinking of really overstretching yourself at a time when the market is at high risk of collapsing.

Bargain_Rzl

Some more constructive information:

The best bargains are to be had in the parts of London which are served by overground rail and buses rather than the Tube. The Tube is not the be-all and end-all, and as long as I've been in London I've always taken care to live in areas where there were alternative means of transport.

In some of the nicer parts of South-East London you could get a really nice 2-bedroom flat, either newbuild OR with character, for well under £200k.

Try Blackheath or Greenwich if your budget will allow it; Forest Hill or Crystal Palace if you wanted to look in a lower price range. All of these are leafy areas with good "communities" and amenities; all are less than 20 minutes' commute from a major London rail terminus and are well-served by public transport (Blackheath a little less so than the other places I mentioned).

If you're working in Angel, perhaps you might think about flat-hunting in the nicer parts of Hackney and the surrounding areas. You could certainly get a decent one-bed round there for your money, and the buses are excellent.

Bargain_Rzl

Another point:

I quote "I'm swaying towards buying somewhere, even though i don't need it at weekends, as i feel it's a waste to rent. I'm thinking more along the lines of an interest only mortgage".

How is renting different from an IO mortgage, in "wastage" terms?

If all you can afford is IO for 30 years, this sounds like you'd be pushed to afford a repayment vehicle to repay the capital at the end of the term.

sooooooo....

You'd basically be renting the flat off the bank rather than off a landlord, but unlike actual renting, you'd also be responsible for all the maintenance costs and the risk!

Sorry but I really do think you might be best off in the long run if you rent. In London.