FTB London? Are there any left...

adamL

Hi,

I’m a first time buyer in London and after 5 years of searching I’ve finally found a house, albeit a small 2 bed house in the SW regions of London I’d like to buy. Am I crazy? Is there actually any first time buyers left in London. We have a deposit of 20% and mortgage we’ve been offered has an interest rate of 1.55% which makes it very affordable to us (it’s a about the same as the rental value - £2k per month and not much more than we already pay in rent for something much worse). I’d happily take a hit on the property value of Rent minus mortgage interest every month but that only works out to about 3% a year decline in the value of the property.

I’m not sure if I know what good value looks like in London anymore. And yes, I know things have definitely got cheaper and there are very few buyers around but I’m puzzled over what kind drops would be required to get all first time buyers back in the game again. This particular area of SW London is somewhere that will hopefully always remain very nice.

Any view

ruby2sday

I feel like anything you can buy in London that's relatively affordable is always a good financial decision. The more affordable outskirts areas fast become known as the place you can afford to buy, making them very sought-after and soon they're the place to be and get gentrified and the house prices shoot up. London just keeps getting more and more populated and it pushes people further out so I reckon if you can afford it go for it!