Moving into London this fall, recommendation for buying property

limsk63

Hi, i'm moving to London soon to study in Imperial College @ south kensington. I have enough budget to rent a room in south kensington for 3-5 years but i also realize that property in zone 2,3,4 are relatively cheaper (the lowest quartile of property market is reaching the top of my budget)
rent 1 room for 5 years in south kensington. 200 pw x 50 weeks x 5 years = 50k pound
if there are properties around 40-100k per room, (which means 2 bedroom for 200k, 3 for 300k) and is under 30-60mins travel time to south kensington, It is in my comfort zone because even right now in Malaysia, i need to take a 30 mins tube to KLCC twin tower so i was brought up in such environment (not a city boy). I can share the cost with my friends, as they are looking for such opportunity as well.

however, the gloomy house market prospect is scaring me off as generally people think the real house market crunch havent reach yet and the house price might be abit too high now anticipating the olympic, might get into negative equity? will it be hard to sell it off in the future? will the house value drop till half of the current price? if so, i will be better off renting a property...

if it is advisable to buy a property, then where? are tubes the best/only way to get into town (its expensive even with 30% off)? what about bus, bicycle? im ok with both flat and landed, whichever cheaper per room but i dont want shared ownership. after doing some searching, there are plenty of 1 room house for 50k at further part of london. which zone in london is cheap and can go to my school fairly easy. etc, the furthest east station of district line? or properties along great west road up to 10 miles away (cycle)? then i can just hop in bus/tube and sleep all the way through. also, i need to consider oyster card for zone1,2 is 1 price, once it reach zone 3,4 it will be much more expensive

i hope someone growing up in london can share some insight. are people here used to cycle to city? i used to cycle 5 miles (per way) everyday to school when i studied in Zurich, Switzerland. it was ok as long as theres not much hill. what about winter? in Zurich, not everyone is healthy enough to cycle below 0 celcius...

i was brought up the tough way, I understand south kensington is for the richest in London so i hope i can save some money for my parents...

thanks

richardw

There are buses that go south across the thames via the Battersea bridge to Battersea and Clapham where accommodation can be cheaper. bus route maps http://www.tfl.gov.uk/tfl/gettingaround/maps/buses/pdf/southkensington-2236.pdf

Cycling in the busier parts of central London at peak times can be dangerous, there are accidents and deaths. Some cyclists have little cameras on their helmets to record their trips in case of accidents.

hazyjo

Will you be earning while you're studying? Would you be given money by family to buy something, or are you talking about getting a mortgage?

Can't see the point in buying until you know where you'll end up working.

Never advisable to buy with friends!

In your shoes, I would rent for the forseeable future.

You need to realise the rent money pays for accommodation, repairs, upkeep, maintenance, etc. If you owned, you would have to pay for all those other things on top. Also, with a mortgage, a lot of that would be interest you're paying. Would probably take 25 years to 'own' (presuming you'd go for that sort of length mortgage). By the time you're earning, you might find you'd have bought something completely different in a different location.

Fares are also far more expensive the further out you go.

Plenty of people do cycle into London - I would never be one of them. Each to their own. I don't even like driving here (hardly ever have), let alone being let loose on London's busiest streets with no protection around me. No thank you! I value my life. Heard/seen too many horror stories.

Jx

limsk63

richardw wrote: »

There are buses that go south across the thames via the Battersea bridge to Battersea and Clapham where accommodation can be cheaper. bus route maps
Cycling in the busier parts of central London at peak times can be dangerous, there are accidents and deaths. Some cyclists have little cameras on their helmets to record their trips in case of accidents.

how would you describe clapham to someone who has never been to london (ok, i've travel to london and exxes in 07 but i was too young to remember)

its very near to south ken, 5 miles i guess 15-20 mins bike ride. for bus seems like it is from clapham junction grey line all the way to south ken? what about acton city? more expensive or cheap. how is it?

limsk63

hazyjo wrote: »

Will you be earning while you're studying? Would you be given money by family to buy something, or are you talking about getting a mortgage?

Can't see the point in buying until you know where you'll end up working.

Never advisable to buy with friends!

In your shoes, I would rent for the forseeable future.

You need to realise the rent money pays for accommodation, repairs, upkeep, maintenance, etc. If you owned, you would have to pay for all those other things on top. Also, with a mortgage, a lot of that would be interest you're paying. Would probably take 25 years to 'own' (presuming you'd go for that sort of length mortgage). By the time you're earning, you might find you'd have bought something completely different in a different location.

Fares are also far more expensive the further out you go.

Plenty of people do cycle into London - I would never be one of them. Each to their own. I don't even like driving here (hardly ever have), let alone being let loose on London's busiest streets with no protection around me. No thank you! I value my life. Heard/seen too many horror stories.

Jx

i might ask my parents to pay for it then i'll pay them back slowly if mortgage is not feasible here. (int rate for buying house in malaysia are dirt cheap) i just want to be more independent and was thinking about climbing the property ladder a step ahead of my peers.

i will receive a 1100 pound living allowance from my scholarship, i can work during the weekends (16 working hours per week). if the house is 60k for my share, (120 for 2 rooms), my parents can pay 60k and i'll return them 30k in the course of 3-5 years.

why not with friends? my best friend wif his gf, me and my gf, 4 of us can afford a 2 room apartment under 200k. if buy alone it might get really tight. or buy a property and collect rent from my friend?

yes, my initial plan was renting too as it is always the safest choice. it only strike to me recently that i might want to explore the possibility of buying a property

how do you/london commoners normally travel around town then?

kmmr

quest_5692 wrote: »

rent 1 room for 5 years in south kensington. 200 pw x 50 weeks x 5 years = 50k pound
if there are properties around 40-100k per room, (which means 2 bedroom for 200k, 3 for 300k) and is under 30-60mins travel time to south kensington, It is in my comfort zone because even right now in Malaysia, i need to take a 30 mins tube to KLCC twin tower so i was brought up in such environment (not a city boy). I can share the cost with my friends, as they are looking for such opportunity as well.

if it is advisable to buy a property, then where? are tubes the best/only way to get into town (its expensive even with 30% off)? what about bus, bicycle? im ok with both flat and landed, whichever cheaper per room but i dont want shared ownership. after doing some searching, there are plenty of 1 room house for 50k at further part of london. which zone in london is cheap and can go to my school fairly easy. etc, the furthest east station of district line? or properties along great west road up to 10 miles away (cycle)? then i can just hop in bus/tube and sleep all the way through. also, i need to consider oyster card for zone1,2 is 1 price, once it reach zone 3,4 it will be much more expensive

Quest - I think you may need to slightly rethink your budget. What houses are you looking at at these prices?

I definately think you should try to buy if you can, but at these low prices you may be surprised at how little you get! Perhaps you can put up a few links as to what you have seen and it makes it easier to advise when we understand what you are thinking of. London is a very big place, and there are cheap places beside even the most expensive locations, it just depends what you are willing to accept in terms of lifestyle and personal risk!

agrinnall

I think maybe hayzjo has misunderstood your intention, although of course it's possible I have. I think what you mean is that you will buy the property then share it with friends, charging them rent which will help you repay your parents. If that is the case then it's not really a problem, although you should make sure you have a proper lodger agreement between you to protect all parties.

Cissi

As I see it you'll only be able to buy if your parents can give/lend you the cash as you won't be able to get a mortgage based on a student allowance. And while £1100 per month may sound like a lot to you right now, that is going to be very, very tight to live on in London so you'll need those weekend working hours just to make ends meet IMO. I think you and your friends should look at renting something together instead - unless your parents have a lot of money to spare, buying doesn't seem like a realistic option right now.

Cissi

agrinnall wrote: »

I think maybe hayzjo has misunderstood your intention, although of course it's possible I have. I think what you mean is that you will buy the property then share it with friends, charging them rent which will help you repay your parents. If that is the case then it's not really a problem, although you should make sure you have a proper lodger agreement between you to protect all parties.

quest_5692 wrote: »

if the house is 60k for my share, (120 for 2 rooms), my parents can pay 60k and i'll return them 30k in the course of 3-5 years.

why not with friends? my best friend wif his gf, me and my gf, 4 of us can afford a 2 room apartment under 200k. if buy alone it might get really tight. or buy a property and collect rent from my friend?

I read it the same way as Hazyjo, that OP is exploring the idea of buying a property together with friends, and envisaging borrowing £60k from his parents for his share. Sounds like a very risky plan to me.

BigAunty

Buying a property with friends is a sure fire way to ruin your relationship - don't mix business with family and friends. Any issues that crop up around the ownership (or tenancy if you become a landlord instead of joint owner) will invariably fracture the social side of your relationship.

bargainbetty

You can rent a room in SW or SE London in a shared house for £400 per month, half your proposed budget. You can't buy a 1 bed property in London for £50k, you might find one in Bradford, but the commute is a bit long.

The most sensible option is for you to get here and look around. Find an area you like, but go a bit further out of town to save money. I have many friends who cycle in quite happily, but do advise caution when near larger vehicles!

If you parents can buy something outright (via mortgage) and your friends rent from you, great. If you are talking about sharing a mortgage with your friends, I would be very careful. Living with people changes the dynamic of the friendship, and you might find within a year that you can't stand each other.... you've then got a property to sell as well as study.

Rent, relax and enjoy your studies for the first year at least.

Good luck