First time buyer: one bedroom in London

jonnygee2

A brand new studio (34.6sqm) literally in front of the tube it's not happening in Hackney, Brixton or anywhere you want in London at that price.

True but also I wouldn't live in one of those even if it were free! I can see we probably have different property tastes. Hope your offer goes well! fingers crossed...

jimbog

numbercruncher8 said:

 I thought you said you didn't know Deptford that well?
I'd be going back and checking out the surroundings at various times of day/night. Probably the biggest purchase of your life so far. 

A good point. @redefinr have you thought of booking a hotel room in that immediate area for a weekend to get a real feel of it?

redefinr

I went down a few times this week to check around. It's actually pretty nice around, the gentrification is definitely on.
The building it's in a nice block of new builds. There is some good green areas around and each building is medium size, not too big. Here's an aerial:

There are just 2 things for me that are not exactly as I wanted. First, it's the shape of the house which make it harder to separate the rooms...but I can get a bit creative with that I guess. Second, it's quite a high traffic area, but to a certain degree it's everywhere I been looking at. 
The flat is brand new, it's nicely priced, band B in Greenwich council tax, Service Charge are decent (1288pa) considering concierge,gym and pool and most importantly ews1 certificate it's there. I called a bunch of new builds I was interested in various area and none of them told me they had the certificate. Not even 1.
There is a Travelodge next to the building and I could spend the night there, but to be honest it's not going to make any difference...it could be the quietest night ever or there could be some major crime happening it's London.
I'm sending an offer for £255K and see where it goes. If the vendor accept, great! If not, I'm still looking around. In fact, I will be looking anyway even if the offer get accepted. So far, I have only one regret, that I missed on this property on Goldhawk Road:

This was the property I should have bought. Unfortunately, I was haggling too much on the price and missed it.

numbercruncher8

Personally I think that offer will be snapped up. It's been on the market a while, with no reduction. Either this is a lack of interest, or some other impediment (documents?) that prevents it selling.

The studio has been on the market since pre-lockdown, and had no takers. The other one that was SSTC which I'm sure you saw was £265k, but probably had the layout you wanted, with a segregated bedroom, but no balcony.

Question is, this must lie well within your affordability range. Like many ex-new builds in London, listing to sales ratio is quite poor. The most current market price for a 1-bed is around £300k which covers those blocks near the station, those are sold prices as opposed to asking prices.
 
Would the value not be better in going for one of those? IMO having a separate living room and bedroom might cost c.15% more but offers a much more conventional layout which is easier to sell going forwards.

jonnygee2

There is a Travelodge next to the building and I could spend the night there, but to be honest it's not going to make any difference...it could be the quietest night ever or there could be some major crime happening it's London.

Agreed, I think you'd waste time and money tbh. Greenwich is almost entirely a tourist area - seeing it now wouldn't mean much.

Traffic is an issue, in these smaller flats you need the windows open pretty much all the time. More of an issue as it's on a junction, so you'll also get horns all night - fine if you are a good sleeper though. Air pollution is another worry. Depends a lot on what floor its on.

For 255k  I think it's a decent buy given its age and the fact its a short walk to Greenwich town centre. I wouldn't pay a lot more for it myself, so I think you've started about the right place.

redefinr

Initially I was keen to spend a bit more for a property but due to the current situation I'd rather play safe. You all have some valid points, and I'm also wondering why that studio hasn't gone already - although there is quite a good amount of similar properties in the area. 
I could go £300K for a one bedroom, but I noticed that Service Charges goes up, and quite a lot. Once the mortgage is paid that service charge is still going to knock at my door, forever.I considered all costs (council tax, ground rent, service charge...) and that one is the best bang-for-bucks. It's a lightweight mortgage with low risk.
Also, Lewisham College is just opposite the flat, as well as Goldsmith etc etc. if I get tired of it there is good potential renting I'd say. 
The flat it's on the 5th floor, so the noise level it should be slightly less....Fair point on the pollution. The balcony is a nice extra, it wasn;t essential for me but it's nice to have it there. 

hazyjo

Check the lease to see if it can be rented out if that's important to you. These modern concierge and gym type places often can't be.

redefinr

I will double check now with the EA, but the flat is currently rented out by a girl.

bouicca21

Studios are typically difficult to sell when the market is flat.  Sound is sometimes worse on upper floors than lower.  But totally agree on rental potential.

redefinr

AE said there is no problem in renting the property and he's confirming the tenant currently in there it's renting.