House buying dilemma - criticize my thinking please.

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annabanana82 said:

In all your figures have you accounted for the costs as and when a baby arrives? Reduction in salary, maternity pay, nursery fees or reduced hours at work? Plus other baby/child related expenses? 

Thank you for your note.

Not yet, but working on the numbers as well. For the time being, we're willing to understand what are our options and how to plan well ahead. Of course those cost associated with the baby will be there, but these could have occurred irrespective of whether we decide to buy or rent.

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hazyjo said:

That £30k salary is very low for London. Is that full-time? Can that be increased? Should easily be able to earn more than that in town.

Yeah, sadly that's the situation, my partner works in hospitality.. Probably the salary will grow as the time goes by, but for the current maths i've just accounted for the realistic/ conservative scenario (ie as if nothing improves). Byt yeah - trying to work out the alternatives as well.

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Schwarzwald said:

Subject to how you define East London, but I have been living in East for 7 years and recently bought here, zone 2, and overall v happy. But admitting I cant really imagine living outside London (I am not from the UK).

Overall, well done research, but also highly rational i find. If you not planning to have a child in the v short term, and assuming you still enjoy london life, i would rather opt for a 2/3 bedroom flat for the interim until your family has actually expanded.
that’s personal, but commuting such long distances is inherently less reliable than living closer to work, and I would go nuts after a few times of train cancellations, interruptions, delays on my way to work …. unless I really needed to, eg due to actually having a kid and wanting live outside London.

Couldn't have agreed more re living outside London, but that's what we can afford atm so wanted to know what people think/ suggest. 

Thanks, whereabouts in East London are you based in? If you do not mind me asking of course.

hazyjo

I've lived in leafy North Chingford E4 before, and Highams Park, both of which are lovely. Highly recommend. But I don't think your budget will stretch for a house in roads I'd want to live in. Same for Wanstead.

I can't think of anywhere else in East London I'd consider going for a house on your budget. Essex borders like Barkingside or Woodford Bridge may just be doable. Wouldn't touch East Ham, Barking, Ilford, etc, but others will prob disagree.

theoretica

You have not mentioned the possibility to change where you rent - somewhere in the one of the areas you are considering buying in and trying out the commute - see if you really do like the new location. 

Also, now you mention your partner works in hospitality - might changing jobs to cut the commute be something she would consider?

Doodles

If you are willing to go an extra 10mins on the train into London, consider Andover (same line as the Woking one). I've lived here a year so far and really like the area.  Basingstoke isn't bad and under the hour to Waterloo but is quite built up now.  

Thrugelmir

With regards to mortgage interest there's a very eay solution. Take care of your budgets and don't be frivalous with the money you spend. Instead overpay the mortgage. It's an aspect you can control. The less debt you owe/ the greater the amount of equity you have, the sooner you can move up the ladder to your next property. 

Rambosmum

Personally, an 80 minute commute each way every day will be a nightmare, especially with kids. You'll be adding almost 2 hours to your current day - do you feel that's doable long term? 

Plus the cost of kids- 1/3 of take home is a lot. Add in the rising fuel prices, nursery/ childcare fees and it quickly becomes untenable. Nursery costs in the northwest at about £1000 a month full time. Yes, free hours kick in at 3 but as kids get older expenses add up- wrap around care, hobbies, swimming lessons etc. 

What's your salary prospects like? Regular increases? 

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hazyjo said:

I've lived in leafy North Chingford E4 before, and Highams Park, both of which are lovely. Highly recommend. But I don't think your budget will stretch for a house in roads I'd want to live in. Same for Wanstead.

I can't think of anywhere else in East London I'd consider going for a house on your budget. Essex borders like Barkingside or Woodford Bridge may just be doable. Wouldn't touch East Ham, Barking, Ilford, etc, but others will prob disagree.

Thanks, I think i know the area of Chingford, we absolutely adore Epping Forest, so been there a couple of time, and yes - perhaps budget would be a struggle here.. 

Been to East Ham, Barking, Ilford a couple of times - tbh, i'd be better rending where we are based now in Kilburn.

ACCA

theoretica said:

You have not mentioned the possibility to change where you rent - somewhere in the one of the areas you are considering buying in and trying out the commute - see if you really do like the new location. 

Also, now you mention your partner works in hospitality - might changing jobs to cut the commute be something she would consider?

Thank you - good points. Nope, haven't considered living in remote areas just because of the high train costs. We are cycling to work, so our commute price is nil atm.

And yes - change of jobs is also on the radar, not sure how doable is that really, but working on that. For the scenario purposes, we assumed things will not improve (market, rates, salaries etc) just to be safe and conservative, if things get better - that would be a great bonus for us.