In my 30s and in London - what do I do?

[Deleted User]

Yes, they can retire when they want, as long as they got properties they can rent out/sell. If not, they can work until they are 85 and rent a little room. Don't know what they are worried about! 

Martico

If you do investigate greater London, such as Croydon, then I'd also:

Ask myself if I already have friends or family nearby. If not, then investigate areas near to where you already know people. There are more Croydons out there. It's stuck out as being probably affordable with excellent transport links, but there are others out there.

And if and when you do identify an area that you think is affordable, maybe rent an Airbnb there for a week or so. That will allow you to get to know the area and your commute, and might highlight possible problems (fighty pubs? dealers?) or bonuses (friendly? nice places to hang out? amenities?)

You'd get a much better idea of the area in general and its best parts that way before you commit.

YoungBlueEyes

[Deleted User] said:

Yes, they can retire when they want, as long as they got properties they can rent out/sell. If not, they can work until they are 85 and rent a little room. Don't know what they are worried about! 

This is absolutely true this is. Every word. They’ll work you beyond 85 as long as you don’t drop dead, and the only way to get round it is by having lots of properties. You need to do whatever it takes now to acquire them, literally anything! Start now!! 

*sigh* Where is @canaldumidi anyway? I always look forward to his responses on these things… 

Retireby40

[Deleted User] said:

Yes, they can retire when they want, as long as they got properties they can rent out/sell. If not, they can work until they are 85 and rent a little room. Don't know what they are worried about! 

If you bought a bloody house in Norwich or Croydon, spent the next 20 years working, given you have no children or seemingly no plans you could sell the house for more than you paid and retire in Asia. Easy peasy.

Helplesssheep

Martico said:

If you do investigate greater London, such as Croydon, then I'd also:

Ask myself if I already have friends or family nearby. If not, then investigate areas near to where you already know people. There are more Croydons out there. It's stuck out as being probably affordable with excellent transport links, but there are others out there.

And if and when you do identify an area that you think is affordable, maybe rent an Airbnb there for a week or so. That will allow you to get to know the area and your commute, and might highlight possible problems (fighty pubs? dealers?) or bonuses (friendly? nice places to hang out? amenities?)

You'd get a much better idea of the area in general and its best parts that way before you commit.

Definitely agree with this, re Airbnb. It’s what I did.

I looked at cheaper areas of south london only- Croydon, bits of south Norwood and Catford were the three main options that came up. Also around grove park and eltham. Some of these beyond croydon might still be in budget for a one bed, particularly, if as I said, you can get 20k off the asking price. 

sturgeon

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

roaduser3189 said:

What an interesting thread. I think there are some really solid suggestions made by others in terms of finding places to live around London (some even within) that it's worth looking in to. As you mentioned change wont happen overnight in the practical sense. However perhaps a change in attitude is something worth looking at. You cant change things such the cost of houses nowadays or how expensive commuting is, those are not within your control so for your own benefit stop focusing so much energy on the negatives. Think of the things you can change. From what I have gathered you are lonely and alone. I suggest reading something called "The Happiness Trap" , great book and it can change the way you think about your circumstances . I wish you all the best. 

Thanks. I have been trying to focus less on things I can't change (the state of the country and the lack of opportunities). This is why I've been looking into moving abroad. I've also just gotten my Irish citizenship secured, so that's a big step to being able to do other things. Thank you for the book recommendation. 

I recommended several pages back that shared ownership/help to buy resolves your problem, I couldn’t have bought in London without it and did it twice. What are your thoughts on this as the thread is unnecessarily long and this is your solution to live in London? You hadn’t responded. 

Thanks. I've read up on shared ownership and I've mostly been advised to avoid it like the plague. It appears to be a swindle where you're subject to spiraling fees and stand to gain very little, while housing associations gain a lot. 

And I've never understood why people like you worry about how long a thread is. People reply because they want to. You don't have to read it. 

You’re truly screwed then if you haven’t done the research. There are zero fees with help to buy, the official government scheme. Avoid the private shared ownership schemes. It seems you haven’t checked it out and hence don’t realise the crucial differences. 

With HTB you buy a share, you pay nothing on the share you don’t own until year 5 where you pay a very small amount of ‘rent’. If you sell before or remortgage to buy the rest etc then there’s no fee. You just benefit from the profit of the sale (you would hope) and get your % share of that. With other shared ownership schemes you pay rent on the share you don’t own from day one, can be restricted when selling to only those applying for similar schemes, and other downsides. You don’t get these main issues with Help to Buy. 

It’s not great that your only option is to buy a share in a home. But that’s your option in your circumstance wanting to live in London. As I said, I’ve done it twice and very profitably. Would still be saving for a deposit otherwise. 

If you’re taking some online naysayers and disregarding it then you really are in a hopeless position. All the best. 

I have researched. That's great if it's worked for you. I'm concerned about things such as the following:

"If your home goes up in value, you will need to repay more than the government initially loaned you. For example, if you took out a 20% Help to Buy equity loan on a property worth £180,000, this loan would be worth £36,000. However, should you want to repay in full, and your house has risen in value to £200,000, you would have to pay back £40,000 (20% of £200,000)."

Then you need to do more research. 

If in the above example the house has increased to be worth £200k when sold, you’re keeping 80% of the £20k profit (£16k) and the government get their 20% cut of it (£4k). 

Your mortgage and deposit combined when purchasing this £180k property in the example would be £144k (£180k minus the £36k lent through the scheme). So when selling for £200k, you instantly pay off the remaining mortgage plus keep the £16k profit. Plus the amount owed on the mortgage depletes meaning you benefit from a bigger cash pile to go to your next property. 

This is why I’m saying it’s a good solution. The property is how you pay the loan. Or, when hopefully your salary improves over time you just remortgage for the higher amount and then you instantly pay off the government loan and then the property is 100% yours and you keep the entire profit when you eventually sell. 

You’re banking on the property value increasing over time but it also is a roof over your head and your monthly mortgage is paying your house off-not paying a landlord mortgage as with renting. 

[Deleted User]

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

roaduser3189 said:

What an interesting thread. I think there are some really solid suggestions made by others in terms of finding places to live around London (some even within) that it's worth looking in to. As you mentioned change wont happen overnight in the practical sense. However perhaps a change in attitude is something worth looking at. You cant change things such the cost of houses nowadays or how expensive commuting is, those are not within your control so for your own benefit stop focusing so much energy on the negatives. Think of the things you can change. From what I have gathered you are lonely and alone. I suggest reading something called "The Happiness Trap" , great book and it can change the way you think about your circumstances . I wish you all the best. 

Thanks. I have been trying to focus less on things I can't change (the state of the country and the lack of opportunities). This is why I've been looking into moving abroad. I've also just gotten my Irish citizenship secured, so that's a big step to being able to do other things. Thank you for the book recommendation. 

I recommended several pages back that shared ownership/help to buy resolves your problem, I couldn’t have bought in London without it and did it twice. What are your thoughts on this as the thread is unnecessarily long and this is your solution to live in London? You hadn’t responded. 

Thanks. I've read up on shared ownership and I've mostly been advised to avoid it like the plague. It appears to be a swindle where you're subject to spiraling fees and stand to gain very little, while housing associations gain a lot. 

And I've never understood why people like you worry about how long a thread is. People reply because they want to. You don't have to read it. 

You’re truly screwed then if you haven’t done the research. There are zero fees with help to buy, the official government scheme. Avoid the private shared ownership schemes. It seems you haven’t checked it out and hence don’t realise the crucial differences. 

With HTB you buy a share, you pay nothing on the share you don’t own until year 5 where you pay a very small amount of ‘rent’. If you sell before or remortgage to buy the rest etc then there’s no fee. You just benefit from the profit of the sale (you would hope) and get your % share of that. With other shared ownership schemes you pay rent on the share you don’t own from day one, can be restricted when selling to only those applying for similar schemes, and other downsides. You don’t get these main issues with Help to Buy. 

It’s not great that your only option is to buy a share in a home. But that’s your option in your circumstance wanting to live in London. As I said, I’ve done it twice and very profitably. Would still be saving for a deposit otherwise. 

If you’re taking some online naysayers and disregarding it then you really are in a hopeless position. All the best. 

I have researched. That's great if it's worked for you. I'm concerned about things such as the following:

"If your home goes up in value, you will need to repay more than the government initially loaned you. For example, if you took out a 20% Help to Buy equity loan on a property worth £180,000, this loan would be worth £36,000. However, should you want to repay in full, and your house has risen in value to £200,000, you would have to pay back £40,000 (20% of £200,000)."

Then you need to do more research. 

If in the above example the house has increased to be worth £200k when sold, you’re keeping 80% of the £20k profit (£16k) and the government get their 20% cut of it (£4k). 

Your mortgage and deposit combined when purchasing this £180k property in the example would be £144k (£180k minus the £36k lent through the scheme). So when selling for £200k, you instantly pay off the remaining mortgage plus keep the £16k profit. Plus the amount owed on the mortgage depletes meaning you benefit from a bigger cash pile to go to your next property. 

This is why I’m saying it’s a good solution. The property is how you pay the loan. Or, when hopefully your salary improves over time you just remortgage for the higher amount and then you instantly pay off the government loan and then the property is 100% yours and you keep the entire profit when you eventually sell. 

You’re banking on the property value increasing over time but it also is a roof over your head and your monthly mortgage is paying your house off-not paying a landlord mortgage as with renting. 

The bottom line here is that there are opportunities for OP to live in the greater london area. The compromises involved such as the above, labelled a the OP as a concern, are part of the london deal. To be fair, London is an expensive global city. The fact that OP really does have options to reside there, undermines the tone of grievance.

Going back 6 years, I too could have setup in london. However, I had more ambitions to save and less inclination to live in a small flat with commuting costs. Instead I bought in another city. As well as being able to have a spacious property, the city has boomed, and the house value  is up 60 to 70 percent. 

[Deleted User]

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

roaduser3189 said:

What an interesting thread. I think there are some really solid suggestions made by others in terms of finding places to live around London (some even within) that it's worth looking in to. As you mentioned change wont happen overnight in the practical sense. However perhaps a change in attitude is something worth looking at. You cant change things such the cost of houses nowadays or how expensive commuting is, those are not within your control so for your own benefit stop focusing so much energy on the negatives. Think of the things you can change. From what I have gathered you are lonely and alone. I suggest reading something called "The Happiness Trap" , great book and it can change the way you think about your circumstances . I wish you all the best. 

Thanks. I have been trying to focus less on things I can't change (the state of the country and the lack of opportunities). This is why I've been looking into moving abroad. I've also just gotten my Irish citizenship secured, so that's a big step to being able to do other things. Thank you for the book recommendation. 

I recommended several pages back that shared ownership/help to buy resolves your problem, I couldn’t have bought in London without it and did it twice. What are your thoughts on this as the thread is unnecessarily long and this is your solution to live in London? You hadn’t responded. 

Thanks. I've read up on shared ownership and I've mostly been advised to avoid it like the plague. It appears to be a swindle where you're subject to spiraling fees and stand to gain very little, while housing associations gain a lot. 

And I've never understood why people like you worry about how long a thread is. People reply because they want to. You don't have to read it. 

You’re truly screwed then if you haven’t done the research. There are zero fees with help to buy, the official government scheme. Avoid the private shared ownership schemes. It seems you haven’t checked it out and hence don’t realise the crucial differences. 

With HTB you buy a share, you pay nothing on the share you don’t own until year 5 where you pay a very small amount of ‘rent’. If you sell before or remortgage to buy the rest etc then there’s no fee. You just benefit from the profit of the sale (you would hope) and get your % share of that. With other shared ownership schemes you pay rent on the share you don’t own from day one, can be restricted when selling to only those applying for similar schemes, and other downsides. You don’t get these main issues with Help to Buy. 

It’s not great that your only option is to buy a share in a home. But that’s your option in your circumstance wanting to live in London. As I said, I’ve done it twice and very profitably. Would still be saving for a deposit otherwise. 

If you’re taking some online naysayers and disregarding it then you really are in a hopeless position. All the best. 

I have researched. That's great if it's worked for you. I'm concerned about things such as the following:

"If your home goes up in value, you will need to repay more than the government initially loaned you. For example, if you took out a 20% Help to Buy equity loan on a property worth £180,000, this loan would be worth £36,000. However, should you want to repay in full, and your house has risen in value to £200,000, you would have to pay back £40,000 (20% of £200,000)."

Then you need to do more research. 

If in the above example the house has increased to be worth £200k when sold, you’re keeping 80% of the £20k profit (£16k) and the government get their 20% cut of it (£4k). 

Your mortgage and deposit combined when purchasing this £180k property in the example would be £144k (£180k minus the £36k lent through the scheme). So when selling for £200k, you instantly pay off the remaining mortgage plus keep the £16k profit. Plus the amount owed on the mortgage depletes meaning you benefit from a bigger cash pile to go to your next property. 

This is why I’m saying it’s a good solution. The property is how you pay the loan. Or, when hopefully your salary improves over time you just remortgage for the higher amount and then you instantly pay off the government loan and then the property is 100% yours and you keep the entire profit when you eventually sell. 

You’re banking on the property value increasing over time but it also is a roof over your head and your monthly mortgage is paying your house off-not paying a landlord mortgage as with renting. 

The bottom line here is that there are opportunities for OP to live in the greater london area. The compromises involved such as the above, labelled a the OP as a concern, are part of the london deal. To be fair, London is an expensive global city. The fact that OP really does have options to reside there, undermines the tone of grievance.

Going back 6 years, I too could have setup in london. However, I had more ambitions to save and less inclination to live in a small flat with commuting costs. Instead I bought in another city. As well as being able to have a spacious property, the city has boomed, and the house value  is up 60 to 70 percent. 

Glad it's worked out well. Unfortunately my work is always going to be in London and so I am hindered by that. My plan was to buy in Norwich as I can afford a nice place there. But I can't deal with travelling back and forth every week. It's really run down my mental health and has left me feeling like I don't have a home. I know plenty of people on this thread will see that as weak and millennial and 'feeling sorry for myself' etc but it's just how I am. I don't enjoy living a hundred miles from my friends and family and shaping my life around £80 trains back and forth every few days. 

So I am thinking to buy something with a shorter, more affordable commute, even if I get much less for my money. 

Thanks for your input. Makes a lot of sense. 

lookstraightahead

When I was in my late twenties (30 years ago) I bought in Croydon (or just outside) and commuted into London. I couldn't afford to live any closer, same situation as people have always found themselves in if they work in London. All my family are in the north of the country but I did it anyway. It was a lovely one bed flat but my days were long. Don't regret it though, I love London. I moved out of London in thirties and then moved more north to a terraced house with a 1 hour commute. I now live too far north to commute 🤣 in the middle of the countryside.

I love London but you have to make some choices here - my daughter rents in zone 2 and is building up her career - far too young to settle, but she will be faced with the same issues I'm sure.

My choice was always longer commute but nicer area. 

[Deleted User]

[Deleted User] said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

sturgeon said:

[Deleted User] said:

roaduser3189 said:

What an interesting thread. I think there are some really solid suggestions made by others in terms of finding places to live around London (some even within) that it's worth looking in to. As you mentioned change wont happen overnight in the practical sense. However perhaps a change in attitude is something worth looking at. You cant change things such the cost of houses nowadays or how expensive commuting is, those are not within your control so for your own benefit stop focusing so much energy on the negatives. Think of the things you can change. From what I have gathered you are lonely and alone. I suggest reading something called "The Happiness Trap" , great book and it can change the way you think about your circumstances . I wish you all the best. 

Thanks. I have been trying to focus less on things I can't change (the state of the country and the lack of opportunities). This is why I've been looking into moving abroad. I've also just gotten my Irish citizenship secured, so that's a big step to being able to do other things. Thank you for the book recommendation. 

I recommended several pages back that shared ownership/help to buy resolves your problem, I couldn’t have bought in London without it and did it twice. What are your thoughts on this as the thread is unnecessarily long and this is your solution to live in London? You hadn’t responded. 

Thanks. I've read up on shared ownership and I've mostly been advised to avoid it like the plague. It appears to be a swindle where you're subject to spiraling fees and stand to gain very little, while housing associations gain a lot. 

And I've never understood why people like you worry about how long a thread is. People reply because they want to. You don't have to read it. 

You’re truly screwed then if you haven’t done the research. There are zero fees with help to buy, the official government scheme. Avoid the private shared ownership schemes. It seems you haven’t checked it out and hence don’t realise the crucial differences. 

With HTB you buy a share, you pay nothing on the share you don’t own until year 5 where you pay a very small amount of ‘rent’. If you sell before or remortgage to buy the rest etc then there’s no fee. You just benefit from the profit of the sale (you would hope) and get your % share of that. With other shared ownership schemes you pay rent on the share you don’t own from day one, can be restricted when selling to only those applying for similar schemes, and other downsides. You don’t get these main issues with Help to Buy. 

It’s not great that your only option is to buy a share in a home. But that’s your option in your circumstance wanting to live in London. As I said, I’ve done it twice and very profitably. Would still be saving for a deposit otherwise. 

If you’re taking some online naysayers and disregarding it then you really are in a hopeless position. All the best. 

I have researched. That's great if it's worked for you. I'm concerned about things such as the following:

"If your home goes up in value, you will need to repay more than the government initially loaned you. For example, if you took out a 20% Help to Buy equity loan on a property worth £180,000, this loan would be worth £36,000. However, should you want to repay in full, and your house has risen in value to £200,000, you would have to pay back £40,000 (20% of £200,000)."

Then you need to do more research. 

If in the above example the house has increased to be worth £200k when sold, you’re keeping 80% of the £20k profit (£16k) and the government get their 20% cut of it (£4k). 

Your mortgage and deposit combined when purchasing this £180k property in the example would be £144k (£180k minus the £36k lent through the scheme). So when selling for £200k, you instantly pay off the remaining mortgage plus keep the £16k profit. Plus the amount owed on the mortgage depletes meaning you benefit from a bigger cash pile to go to your next property. 

This is why I’m saying it’s a good solution. The property is how you pay the loan. Or, when hopefully your salary improves over time you just remortgage for the higher amount and then you instantly pay off the government loan and then the property is 100% yours and you keep the entire profit when you eventually sell. 

You’re banking on the property value increasing over time but it also is a roof over your head and your monthly mortgage is paying your house off-not paying a landlord mortgage as with renting. 

The bottom line here is that there are opportunities for OP to live in the greater london area. The compromises involved such as the above, labelled a the OP as a concern, are part of the london deal. To be fair, London is an expensive global city. The fact that OP really does have options to reside there, undermines the tone of grievance.

Going back 6 years, I too could have setup in london. However, I had more ambitions to save and less inclination to live in a small flat with commuting costs. Instead I bought in another city. As well as being able to have a spacious property, the city has boomed, and the house value  is up 60 to 70 percent. 

Glad it's worked out well. Unfortunately my work is always going to be in London and so I am hindered by that. My plan was to buy in Norwich as I can afford a nice place there. But I can't deal with travelling back and forth every week. It's really run down my mental health and has left me feeling like I don't have a home. I know plenty of people on this thread will see that as weak and millennial and 'feeling sorry for myself' etc but it's just how I am. I don't enjoy living a hundred miles from my friends and family and shaping my life around £80 trains back and forth every few days. 

So I am thinking to buy something with a shorter, more affordable commute, even if I get much less for my money. 

Thanks for your input. Makes a lot of sense. 

Your family connection makes it a hard decision. My original move to london was for work and it took me overseas from my family. So leaving london was easier for me as i wasnt leaving someone behind.

I hope you can find a way. I knew a couple of people who stretched themselves to buy in london. Whilst they seemed to live paycheck to paycheck at the start they were happy enough. 

As this is a money saving forum, i would add that i dabbled with having a lodger before. If that can be possible for you i think its up to 7200 per year tax free?