Studio flat in Canary wharf

Little_Bunny

Hi everyone,

I was hoping for some advice particularly from someone who has bought a studio flat in the past. A bit of background is I am 29 and single so for the moment I could handle living in a studio for the next couple of years. I was thinking of buying a studio near Canary wharf which I believe can command a good rental yield - I think it can bring in approx £1200 a month.

However I'm not looking at this option to be a btl investor, I just want to get on the ladder and not have to live a million miles away from where I work.

So my question is despite it being harder in general to buy a studio although it shouldn't be impossible since its an excellent location, how realistically will I be able to afford a deposit for a larger place in the future bearing I like to think I will be lucky enough to have a family in a few years time? Or should I just bite the bullet and buy a 1 or 2 bed miles away from London?

Ps I have a MIP with a mortgage loan of £220k and up to a £50k deposit - thanks!

Bunny

phill99

Little_Bunny wrote: »

how realistically will I be able to afford a deposit for a larger place in the future?

Bunny

How on earth would we know? We have no idea how much you earn, your spending habits, inheritance potential etc. Only you will know what you can afford at any point in the future, and even that is just conjecture.

This really is a non-question.

BitterAndTwisted

Studios are harder to shift than 1 or 2 bedroom flats. If property is currently over-priced at that location and there's a "correction" in property-prices you are likely to be saddled with an albatross, with only your deposit and mortgage over-payments to use as equity for your onward move. If there is any equity left after the correction. In my opinion London property-prices are over-heated and a correction is on its way. Not next week, perhaps, but on its way.

Landofwood

Can you really get a studio near canary wharf for that little?

I know some people renting a studio near Kings Cross for £1800

Annisele

I think you're going to struggle to find anything. I've just looked on Rightmove for studio flats in "Canary Wharf", and I've only found one in your budget. Most of them are at least £300k.

Of course, you don't have to live in Canary Wharf - but the further out you go, the less attractive a studio would be. People only tend to want studios if they can't get anything else - and as B&T says, if there's a market correction you'll struggle to shift it.

As to your actual question, you're going to have to tell us a bit more about yourself - at least your salary!

benjus

Depends what you mean by "Canary Wharf"... The actual CW estate is private land and is mostly offices and retail. I'm not actually sure if there's any residential space at all. Then you've got areas around South Quay which would be over £300k for a studio. Then there's the (fairly ropey) areas around CW line Poplar which will be cheaper.

Little_Bunny

Hi thanks for all the responses so far, and yes sorry for forgetting vital info! My current salary is £44k but this will go down in a months time but at this stage I am not sure what as I'm still negotairing but probably around £38 to £40k. I am not the biggest spender and I can't rely on an inheritance but what my major fear is being stuck in a studio - yes fine as a single person but not like I said if I want to raise a family which id like to think is a possibility in say 3 years time.

So I have a 2 year fixed mortgage and would like to convert it to a btl when that comes to an end but is it possible when I remortgage to gain some equity to help me towards buying a new place as long as I save like crazy as well? I understand there is less capital appreciation with studios but if I overpay my mortgage won't I have enough equity to put as a deposit on a new place? As you can appreciate I am a ftb so don't really have the best idea as to how these things work!! Thanks!

gfplux

My daughter was recently sharing in Ste David's Square E14. Two bedroom two bathroom. She has recently moved but I am sure the present rental will be a total of £2000.
In my opinion a high quality modern studio would achieve £1200 and from what I saw there is a strong demand for all types of flats in that area.
If you only have to think about yourself I would go for the studio to get on the ladder in that area, or a one bed in bad condition.