Buying in London - what would you do?

zagubov

beaming said:

theoretica said:

Why 2 bed?  You might find it worthwhile to also look at larger 1 bed and see what is available.  Occasionally it is the same property, just described/used differently.

Hoping to have a 2nd bedroom for guests. Not essential but highly desired

I don't know anyone in London who as a single owner hasn't taken in a lodger at least temporarily.

bouicca21

2 beds sell far more readily than 1 beds, especially during periods when the market is flat.  Besides having a room for work/ junk/ friends/lodgers is always useful.

blue_max_3

zagubov said:

beaming said:

theoretica said:

Why 2 bed?  You might find it worthwhile to also look at larger 1 bed and see what is available.  Occasionally it is the same property, just described/used differently.

Hoping to have a 2nd bedroom for guests. Not essential but highly desired

I don't know anyone in London who as a single owner hasn't taken in a lodger at least temporarily.

I rented a two-bed flat for 2.5yrs and never had a lodger. Now bought a three bed and no intention of having anyone else stay. Just buy as much as you can afford, but keep on eye on the possibility of interest rates rising, albeit slightly.
I live in Muswell hill, which is a leafy Edwardian suburb. Around there is East Finchley, Highgate and Crouch End. You'll get a one-bed and maybe a two if you are prepared to make a lot of compromises. The cheaper properties are 'convenient' for the North Circular. There's no tube, but East Finchley and Highgate are close by. 
Finsbury Park is a bit closer in and has good transport links. You really have to visit I think. Or make use of google maps and streetview. 

Indigo_and_Violet

There are plenty people on here who wouldn't touch a leasehold with a bargepole. Personally, we've accepted the compromise. I'd much rather have a 30 minute commute rather than a 60 minute commute and I'm prepared to accept much less space and being in a flat rather than a house to achieve it. Plenty of our friends (particularly those with kids) have moved out to the 'burbs and while it works for them the thought of a 3rd or even 4th bedroom that I'd just have to find time to clean plus losing an hour every day plus having to pay season ticket prices just doesn't do it for me. Also, my boyfriend's work situation is like yours in that he's a contractor so moves office every 6 months and if we'd been further out there are some contracts he'd probably have turned down. That said, we have gone for converted house rather than purpose-built block and did our due diligence on our freeholder (they're responsive and helpful which makes a big difference). 

Assuming not ground floor = prepared to accept no outside space you might still get some 'bargains'. We're in Finsbury Park where you'd have limited choice for £425k. Agree Wanstead is nice. A lot of our friends have bought in Walthamstow which is on the Victoria Line and should have choice for your budget. If you like the boutique feel of Kings X then you could look at Stoke Newington/Crouch End but they're not so good for transport. I know plenty people would never consider Tottenham but there's lots of development around Tottenham Hale which has great transport links (I probably wouldn't buy new build) and even parts of Wood Green are gentrifying rapidly. Sorry, these are all very predictable options!

It's a very personal choice. Plenty of people think we're mad for having paid a lot of money for a small leasehold in a densely populated area. But it's our life and we love it. It might end up not being the best financial investment, but property is such a gamble anyway and even freehold houses get subsidence or damp or bad neighbours we decided to buy to live rather than buy to invest.  

Good luck!

Windofchange

If you are looking for a long term hold, then you have to consider life events. I am assuming young(ish), single, no children etc etc? Your wish for the hustle and bustle of central London may well disappear in 5 years time if children come along and you need more space, or you get a bit older and don't care for only being a 5 minute stumble to a tube station as you no longer go out drinking three times a week. I'm approaching my mid 40's, and what I wanted 10 years ago is vastly different to what I have now. Looking back 20 years to when I was in my mid twenties and partying non stop, again, huge huge difference to the small cramped smelly flat I rented with a friend because it was right in the middle of the Clapham night life. God, it was lucky we spent so much time out as the place was so cramped, the traffic noise never stopped, the pubs and clubs kicking out in the early hours most nights. It didn't bother me then, but now, jeez I'm glad I never brought anything round there! 

I would second the comments above about moving out into the suburbs to get a better quality of life, and many places have very fast links into town. I have spent all my life south of the river, but can second Croydon as being 15 mins train into Victoria, Wimbledon / Earlsfield / Raynes Park / Soutfields all pricey areas but again fast transport links. Given the vast majority of tube stations are north of the river, I can't imagine it being any different there in terms of living slightly out and then coming in. If your two bed cramped flat money for Zone 1/2 could stretch to 4 bed house money in zone 5/6, that gives you a far higher potential for rental money in the future. You also are likely to only attract party animals and youngsters in your Central London flat which might be fine now, but in 10 years time do you want to listen to your 21 year old flatmate getting it on with his latest Saturday night conquest? I'm generalising massively and of course not all of Central London is like that, and not all flatmates are like that, but it is a thought all the same? 

You probably need to assess where you see your life going as much as is possible. Nobody can tell you what house prices, rental yields, demographics etc etc will do in the coming years, but all you can do is buy as wisely as you can now. For me that would never be a small freehold flat in Zone 1 or 2. Too much risk that my life changes, my needs change and I want more space. Some people however love living in the middle of it all, and none of the above bothers them. You are the only one who can answer what you want. 

nkarma

This topic comes up quite a bit on here.

Me and my friends are pushing 40 /45 and we all in some ways are mourning a bit of our younger years.  I'm not going to say it was the 'best' times of our lives but it certainly was totally wonderful.

Why push the OP to cut that brief window where you are young but also in a position of some financial and personal security short to become the person they are in 10 years.  You are literally robbing them of some wonderful times.  And maybe they need to go through it to become their future self.

Live in London in the place that makes your heart sing even if it's a tiny box.  Or go live in your home by yourself where your friends forget to invite you out cause you live so far out and always have to leave early to catch the last train.

I did the first - paid as much as my friends who bought a 3-4 bed freehold house for a small 2-bed garden flat in zone 2.  Haven't regretted it for a second! My home provides me everything I need in terms of space and life as well as the lifestyle I want with like-minded people living nearby are at my doorstop.

lisyloo

beaming said:

bouicca21 said:

So much depends on the type of area you want to live in.  Acres and acres of suburban housing and little else?  Cafes, restaurants?  Green space?  Diverse demographic?  Quirky shops?  And then there is the time and cost of getting into Town - and deciding which bit of Town is going to be best - City or West End?

when we know the answers to those questions people will be able to advise further.

My ideal place to live would be around Kings Cross. I love the cafes/restaurants, near the canal, superb for travelling whether that's across the UK or getting  the eurostar to Europe. I see that’s pretty unrealistic though with regards to my budget ( a decently sized 2 bed flat with a good lease)

I guess my query is more about investing wisely for the long term. I’m fortunate to have £420k to spend on property. I can be flexible with location, good transport links is really my only non-negotiable (eg. 10mins walk to station)

I'm interested in other people's views. Should I try and buy as centrally as possible (likely small leasehold flat)... Or prioritise getting a freehold 

I'm surprised I'm the first one to say it, but I don't think your budget will go very far in zone 1 and definitely not 2 bed (assuming you don't want to live next door to a crack den).
I rented in an ex social housing block - so acceptable (just) but far from luxurious - 1 bed was worth about £500K and that was the minimum acceptable and 1 bed.

I am absolutely not saying don't go for that - we loved it.
I just saying you may well have to adjust your expectations if you want to be central.
It's really time to decide what is most important to you as London really pushes your budget/red lines.
so do you need space or do you want to reduce travel/commute?

We went for somewhere central and very small and eye-wateringly expensive (for what it was) and loved it but that won't suit everyone.

Sometimes you need to see a few places to refine what you really want.

personally I'd probably go central - seeing you asked

gwynlas

There are advantages to having a ground floor/garden flat in that it extends your living space on good days and you can erect a shed for additional storage. I lived and worked in Camden and Islington for a number of years and thoroughly enjoyed it. Whilst a second bedroom is useful for storage and guests you might be better off in a spacious one bed if the bathroom is off the hall then a sofa bed will suffice. Outside space is important so consider balconies and terraces and keep away from main road noise and pollution. Avoid ex local authority because of potential for large repair bills. Central is obviously best but good transport links including night bus routes are useful. I normally advocate for freehold houses rather than leasehold flats but you might get a shared freehold property and have some control over service charges. 

MandyMcG

I have a 2 bed flat in the Falcons, next to Clapham Junction station. The prices there are steadily ticking back up to pre-pandemic highs. You could get a decent 2 bed - 2 bath for £400ish, which could easily be worth north of £550k by the end of 2025 if you follow the 18 year property cycle.

The beauty of the Falcons is that it is directly opposite Clapham Junction station, and has its own onsite residents gym and pool as well as secure parking. 

Great rental yields too

beaming

I appreciate the comments and opinions - thank you.
I'll expand my search and have a look at some of the areas mentioned. Money seems to go much further with property sizes a bit more South. 
Whilst I could find a house on the outskirts, I think I'll be going for a flat more centrally (out to zone 4) to be able to afford a 2 bed. 
In regards to comments about the 2nd room, I enjoy hosting. I know one can always be generous and hospitable, no matter how small the space, but I think generally it’s much more comfortable for guests when there’s a spare room (and I’d be willing to go further out to afford that) 
On I go with rightmoves