How do you resist the urge to buy in London?

remorseless

I have been in London for just over a year and even though I have no intention to settle in London or UK really, I have this urge of wanting to buy real estate! Prices in London are obviously over the roof and the rental yield don’t seem too good either for BTL.

I am happy renting, I only spend a small amount of my income in rent with an easy commute to the office, the rest I save and/or invest. I already own a flat back home where I will be retiring in a very distant future and it’s mortgage free.

Should I bother getting on the real estate mad-wagon in the UK?

stator

It's quite easy for me to resist since I don't live in London and I don't have any money.

As an investment I certainly wouldn't consider it. The prices have fluctuated far too much.

Pixie5740

With great ease. One I don't live in London and when considering BTL investments I wouldn't look at England never mind London. Buying property in England is a circus and unnecessarily stressful. Not to mention when you "buy" a flat (and this applies to some houses as well I think) you don't really own it but are just leasing it for 99 years (or however long the lease is).

Then there's the matter of managing a property from overseas (if you have no intention of settling in the UK).

Acc72

remorseless wrote: »

I have this urge of wanting to buy real estate!


Prices in London are obviously over the roof and the rental yield don’t seem too good either for BTL.

You have answered your own question.

fairy_lights

That's a very strange question to ask. Most people who live in London and want to buy there struggle to be able to afford it, 'resisting the urge' to buy is the complete opposite of most peoples situation.

hildosaver

In my opinion it would be total madness to buy in London at the moment. Prices MASSIVELY inflated imo and will burst significantly at some ppint in the future. I wouldnt touch it with a barge pole.

remorseless

fairy_lights wrote: »

That's a very strange question to ask. Most people who live in London and want to buy there struggle to be able to afford it, 'resisting the urge' to buy is the complete opposite of most peoples situation.

I think there are still some affordable finds but when I made some calculation I am better off renting than paying a mortgage despite low interests!

jools182

How do you resist the urge to buy in London?

I look at the prices, then look at my wages, then cry

remorseless

hildosaver wrote: »

In my opinion it would be total madness to buy in London at the moment. Prices MASSIVELY inflated imo and will burst significantly at some ppint in the future. I wouldnt touch it with a barge pole.

That's what I am also afraid!!! Surely prices will keep going up forever and ever (and another ever) in London!:rotfl:

jjlandlord

I know what you mean...

I was in London on Friday, saw all these nice buildings, and... couldn't resist. I'm probably right behind the Duke of Westminster in terms of portfolio value now.

My wife's going to kill me as we were supposed to save for a new TV. Oh well.

supermassive

Why not BTL elsewhere in the UK? If you're on London wages, you can definitely afford it.

http://www.rightmove.co.uk/property-for-sale/property-33502392.html

http://www.rightmove.co.uk/property-for-sale/property-33502389.html

They're undesirable homes for anyone that knows the areas, but they're very popular rentals purely because the people that live in those areas are not exactly eligible for mortgages. The houses are wrecks inside (and probably outside) which would require a budget refurb - people in these areas don't expect much. Bog standard bathroom/kitchen, etc. Everything ultra-basic.

The rental for houses on those streets is between £450 & £500 pcm. Which will easily outweigh the cost of purchase & refurb in a very short timespan. Especially if, at an auction, you managed to get the price somewhere near the guide.

Smaller figures than London, obviously, but a far wiser investment.