Have I made a mistake purchasing a London new build?

noddynoo

London is falling quite significantly but if its a home you can probably ride it out

Crashy_Time

tom9980 wrote: »

MORE debt? oh crashy i didn't know things were so bad for you! i thought you were investing in "other things" so had it all covered?

Well I`ll take my chances with global equities over London property, especially since the EU now has a reason to undermine London, and no I don`t have any debt so you can relax.

Crashy_Time

https://www.theguardian.com/business/2017/may/11/stagnant-buyer-demand-puts-the-brakes-on-uk-housing-market

glasgowdan

Did you read all of that article?

Cakeguts

The point is that you are going to have to pay to live in London. So even if the flat you buy is a bit on the expensive side you would still have to pay to live somewhere if you were renting. So if you are going to have to pay to live somewhere you might as well pay to live somewhere where no one is going to tell you how to decorate or not do anything to the flat. Also your mortgage will only go up if the interest rates rise so you know how much you will be paying to live there. No surprise rent rises. When you come to sell this flat you will get some money back. You don't get anything back from renting.

What people forget is that if prices go down you get less for the property that you are selling but you also pay less for the property you are buying so it all balances out.

always_sunny

Cakeguts wrote: »

The point is that you are going to have to pay to live in London.

Yes and no, but I guess you either pay in accommodation or in transports.
There are some locations outside of London that are quicker to reach into town.

I feel for the OP though, at 26 with a mortgage on zone 2! Well it all depends on the ratio between houses expenses vs income!

cloo

Forget about if it's a mistake and enjoy living there... many Londoners would give *anything* to be that close into town.

Crashy_Time

Cakeguts wrote: »

The point is that you are going to have to pay to live in London. So even if the flat you buy is a bit on the expensive side you would still have to pay to live somewhere if you were renting. So if you are going to have to pay to live somewhere you might as well pay to live somewhere where no one is going to tell you how to decorate or not do anything to the flat. Also your mortgage will only go up if the interest rates rise so you know how much you will be paying to live there. No surprise rent rises. When you come to sell this flat you will get some money back. You don't get anything back from renting.

What people forget is that if prices go down you get less for the property that you are selling but you also pay less for the property you are buying so it all balances out.

London rents are falling, rates can only go up from here.

Crashy_Time

Cakeguts wrote: »

The point is that you are going to have to pay to live in London. So even if the flat you buy is a bit on the expensive side you would still have to pay to live somewhere if you were renting. So if you are going to have to pay to live somewhere you might as well pay to live somewhere where no one is going to tell you how to decorate or not do anything to the flat. Also your mortgage will only go up if the interest rates rise so you know how much you will be paying to live there. No surprise rent rises. When you come to sell this flat you will get some money back. You don't get anything back from renting.

What people forget is that if prices go down you get less for the property that you are selling but you also pay less for the property you are buying so it all balances out.

Not if it`s worth less than he paid (borrowed)? Big debt on a property that could be very hard to sell in future at record low interest rates is a massive gamble IMO.