House buying dilemma - criticize my thinking please.

ACCA

Doodles said:

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.  

Thank you.

Sadly the annual train season ticket is just over £5,400, so that is over the amount I considered in my analysis, which means it's gonna drive the 'sunk' costs pot even higher, making it even less attractive from economics perspective. But thank you, I will research that place just for information purposes, 10 minutes wouldn't change the 2h routine really, but the cost will. 

ACCA

Thrugelmir said:

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. 

Thanks, I've played a couple of models on excel and do totally agree with your judgement. The issue is that the first 5 years, even with 1k per month overpayment, the interest will still be in the region of 800 per month, that's quite heavy if you add charges, train, tube and other things on top. So that's my question really - what would be the option here.

Section62

hazyjo said:

I'd add Hertford, Ware, and Bishops Stortford to the list (if that budget stretches, not looked there for ages)

...You might as well avoid tubes, plus that'll add loads of time - and stress - to your journey!

I'd agree with those locations as being good prospects.  Crossrail 2 was heating things up along the route of the Lea Valley line but now that project has been reduced to safguarding only (and no realistic prospect of a restart) there could be reasonable value to be found.  It does remain a corridor for growth though and with linkage to Stansted there will need to be future upgrades, even if CR2 remains dormant.

I'd also consider stations that are walkable (nice weather) or a bus ride (less nice weather) from the workplace rather than relying on the tube.

theoretica

ACCA said:

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.

Yes, trying out the commute would be an added expense - but not as expensive as buying and then realising you had made a mistake.

Thrugelmir

ACCA said:

Thrugelmir said:

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. 

Thanks, I've played a couple of models on excel and do totally agree with your judgement. The issue is that the first 5 years, even with 1k per month overpayment, the interest will still be in the region of 800 per month, that's quite heavy if you add charges, train, tube and other things on top. So that's my question really - what would be the option here.

Interest rates are only heading one way at the moment, and that's upwards.  Home ownership gives you security of tenure , somewhere to call home. Not everything can be valued in £'s. The more you dither the quicker that time will pass. That's something none of us have any control over. 

Rumana03

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.

I agree with the Barkingside comment. It's a really nice area and I have lived here for 4 years. You should be able to get a 3 bedroom within your budget around here. Or Hainualt even which I heard isn't a bad area either but a little bit further out.
Definitely don't go to Gants Hill, Ilford, Plaistow...these areas are rough.

hazyjo

For anyone thinking of moving out and commuting, I find it's the bits either side that make it unbearable.

A 10 min walk to a station (in my case, with this beautiful view every day), a 45 ish min train journey where I often watch something on Netflix/Prime, and a 5 min walk the other way end is perfect. I'd rather that than stand for 30 mins on a tube. I most certainly wouldn't want a bus journey or a drive to a station, and a tube journey or 20+ minute walk the other end (and the same in reverse coming home) 

MysteryMe

Just seems so odd that with all this research you've done you've not listed a single location in East Herts or Essex which are the locations which along with Cannon Street are most convenient for Bank going into Fenchurch Street and Liverpool Street.

hazyjo

MysteryMe said:

Just seems so odd that with all this research you've done you've not listed a single location in East Herts or Essex which are the locations which along with Cannon Street are most convenient for Bank going into Fenchurch Street and Liverpool Street.

Lots in Essex but the nicer areas are pricey. May get something in Shenfield. The likes of Central Line nice bits of Essex are well out of budget.

I really like Stansted Mountfitchet too, but it may be a little quiet. Lots nearby though.

ACCA

hazyjo said:

For anyone thinking of moving out and commuting, I find it's the bits either side that make it unbearable.

A 10 min walk to a station (in my case, with this beautiful view every day), a 45 ish min train journey where I often watch something on Netflix/Prime, and a 5 min walk the other way end is perfect. I'd rather that than stand for 30 mins on a tube. I most certainly wouldn't want a bus journey or a drive to a station, and a tube journey or 20+ minute walk the other end (and the same in reverse coming home) 

Oh, wow, where is that if you do not mind me asking?