First time buyer: one bedroom in London

redefinr

The problem is waiting for a while can probably means prices going up again...

hazyjo

They won't go up overnight. If there are genuine signs of improvement in the market, you'll stand a better chance of getting one.

Or talk to a broker. I'd try that before putting it on hold.

numbercruncher8

IMO then you have to weigh it up.

On the reduced mortgage you can still buy somewhere, but it won't be Islington/Shepherds Bush.
Even if you have to commute all over London there are still quite a few places which offer decent connections and fit within the budget.

Most housing decisions are about compromise. A decade ago had you only wanted live in a certain area of London and thus refused everywhere else, you would end up being priced out of everywhere, whereas people that did choose to live in the poorer areas of London gained 100%+ on their investments. 

I don't think that scenario will play out over the next decade, to be honest. But perhaps other areas should be considered. 

redefinr

I hear you...but if I can manage to get this £220K mortgage I'm literally going to thick all of my boxes. If you talking outskirt of London...yeah, I can probably get it something with my budget...but not much within zone 1-2-3 wether North, South, East or West. Also, I'm holding a lot on this choice because in the end it's my house and I genuinely want to get something i want, instead of a 'compromise' (although we all compromise something...sure).
Below £300K there's just a lot of social housing....and you leave it to luck in that case. I do rent privately now in a very small social housing building and trust me 2 days a week you find people doing drugs on the staircase, I often hear neighbours fighting, etc etc. I had enough of it to be honest.

redefinr

After going back and forth with the bank I finally got a new decision in principle with a decent mortgage proposal.
I've been exploring different areas as well, I saw some very new flat in Deptford - I don't know the area very well do you guys think is a good investment?
Particularly this one:

https://www.rightmove.co.uk/property-for-sale/property-68280933.html

In front of the DLR...not bad! Price is appealing. I was looking at a £350k average flats but I think it would put way too much pressure on me

hazyjo

I should imagine the service charge will be extortionate. Let us know when you find out.

redefinr

hazyjo said:

I should imagine the service charge will be extortionate. Let us know when you find out.

That's what I thought. I'm calling in tomorrow morning if service charge and ground rent are reasonable I will be off a viewing

Miranda25

hazyjo said:

I should imagine the service charge will be extortionate. Let us know when you find out.

Tenure: Leasehold, 991 years
Estimated ground rent: £300 p.a.
Estimated service charge: £1288.88 p.a. 

hazyjo

Sure that's a year and not twice a year? Thought it'd be a lot more.

redefinr

It's actually quite reasonable!