How I bought a flat in London at age 25

Owleyes00

AdrianC said:

38.7m2 flat for £200k (after 20% "discount")

https://goo.gl/maps/ecqbCy9BRN39CHpU8
https://www.rightmove.co.uk/properties/108605285#





Minimum space standard is 37m2 for a one-bed with one occupant, 50m2 for one-bed with two occupants.

£36k salary.
15% so £30k equity, north of a year's post-tax income without any spending at all, no student loan repayments, no pensions etc etc.
85% so £168k mortgage, so 4.6x.

"The Garden Room is communal space with bean bags and laid-back interior décor, this versatile room can be booked out for fitness classes, yoga or events. There are electrical sockets and workspaces – just in case you fancy working somewhere other than your home."

Any bets on the service charges?

There's stretching yourself for a benefit, and there's stretching yourself for a millstone around your neck without much in the way of future-proofing at all.

Don’t forget no parking either!

AdrianC

Owleyes00 said:

Don’t forget no parking either!

It's inner London, a <10min walk to a reasonable-size station (two tube lines, overground). No car needed.

grumiofoundation

AdrianC said:

Any bets on the service charges?

There's stretching yourself for a benefit, and there's stretching yourself for a millstone around your neck without much in the way of future-proofing at all.

100 pm quoted in article. 

AdrianC

grumiofoundation said:

AdrianC said:

Any bets on the service charges?

There's stretching yourself for a benefit, and there's stretching yourself for a millstone around your neck without much in the way of future-proofing at all.

100 pm quoted in article. 

Furry muff, I missed that. I wonder if that's during the three months of free internet...?

StandingInTheSun

£36k salary

Lived at home to save

Bought what is essentially a box for less than £200k

Is this really news?

Greymug

grumiofoundation said:

So saved ~30k in 3 years. Although not completely clear if a) living at home and b) if so was rent paid?

What absolute monster of a parent make their children pay for rent?

MaryNB

grumiofoundation said:

So saved ~30k in 3 years. Although not completely clear if a) living at home and b) if so was rent paid?

As often the case with articles like that no actual details provided. 

If paying rent and doing temporary jobs for most of the time saving - very impressive. And the article actually does her a disservice but not making this clear! 

If living at home, paying no rent, on 36.5k (>2k per month) for most of that time then saving <1k per month looks less impressive. 

Further highlighting the journalist quality I noticed the quote: 

“Taking advantage of the stamp duty holiday” 

Is that the stamp duty holiday that made absolutely no difference to a FTB buying a property less than 300k (price in article 198k)? 

This is a big omission. So many stories like hers involve people living at home not paying rent. It's not an option for a lot of us. I had to emigrate to find work so impossible for me. Also £36k is a very good salary for someone at 25. In my line of work graduate salaries start at about £23k. I was careful with my savings but did enjoy myself. Never owned a car and I'm not one for drunken nights out but I still had the odd holiday and gigs with friend etc. However, even if I somehow managed to double my savings I'd still struggle to buy before I turned 30. Property prices where I live when up faster than I could save.

I'm not ragging on her achievements, good for her for getting on the ladder at 25, but it's not a case of if she can do it anybody can.

AdrianC

MaryNB said:

grumiofoundation said:

So saved ~30k in 3 years. Although not completely clear if a) living at home and b) if so was rent paid?

This is a big omission. So many stories like hers involve people living at home not paying rent. It's not an option for a lot of us.

It does state that she was living with her parents until she bought. It doesn't mention if she was paying rent.

AdrianC

Greymug said:

grumiofoundation said:

So saved ~30k in 3 years. Although not completely clear if a) living at home and b) if so was rent paid?

What absolute monster of a parent make their children pay for rent?

We're talking about working adults here...

Greymug

AdrianC said:

Greymug said:

grumiofoundation said:

So saved ~30k in 3 years. Although not completely clear if a) living at home and b) if so was rent paid?

What absolute monster of a parent make their children pay for rent?

We're talking about working adults here...

Yes, and just like my parents would not let me pay rent if I lived at home with them, the same way I would not let my children pay rent if they lived at home with me.

I guess some people are just less generous than others.