Help with deciding on property based on finances

F37A

Hi 

I am planning to change jobs shortly after buying a property. My options:

 i go for this studio in london in a residential area a bit further from amenities but very affordable and i'd have no worries even if a new job doesn't work out and I have to leave - in this case I would comfortably have enough cash to cover the costs. Service charge very small.

I go for 1 bed flat more spacious, good amenties, better if I want to have kids, but my monthly costs all include are 83% of my monthly salary albeit i'd have 15k-18k sitting in a bank for situation where i lose my job or have reduced pay. Service charge is 2.1k which annoys me as that will always rise.

I am apprehensive about having little headroom against monthly take home pay for the flat. If rates rise any more could be very painful. I am in a position to get a decent pay rise should i change jobs but that has its risks. Thoughts welcome? am i being too risk averse. I want the flat but a little scared of cost of living situation. 

MFWannabe

If you are planning to change jobs soon why buy before? Why not get new job first and see how it goes before committing finances to a mortgage. 

Do you need to buy now? 

F37A

I've been looking for 2 years so am quite desperate to buy and I know that a senior job will be high stress for at least 12 months. Given how stressful the FTB buying process has been I'd want to wait until a new job is secure before looking to buy (assuming I buy after a job change).  Given how some firms operate it is possible that I may have to leave in a new job as I work in a notoriously stressful field. But of course lenders frown on your profile if haven't been in a job long and you applying for credit

Emily_Joy

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

F37A

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

MFWannabe

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Only you can decide what is the best decision for you and your circumstances 
Are these the only properties you are considering? You were asking about a house near train track 

Emily_Joy

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Great. Will you be able to afford mortgage if for whatever reason you do not have any income for a year? 

F37A

Emily_Joy said:

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Great. Will you be able to afford mortgage if for whatever reason you do not have any income for a year? 

Thanks for help. With the studio, I would comfortably be able to pay mortgage even if no income for a year. With the desirable 1 bed flat with assumed redundancy pay of at least 8k i would be able to pay mortgage for a year. I suppose i could stay in current job for 6 month longer. 

F37A

MFWannabe said:

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Only you can decide what is the best decision for you and your circumstances 
Are these the only properties you are considering? You were asking about a house near train track 

Thanks I was seeking other perspectives on the circumstances outlined which may make me see things I had not considered. There's one more cluster house that is 2 bed in a town that is not desirable with expensive trains costs of 6k a year albeit freehold. The train track one I passed on although I liked the property other than that issue. 

Emily_Joy

F37A said:

Emily_Joy said:

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Great. Will you be able to afford mortgage if for whatever reason you do not have any income for a year? 

Thanks for help. With the studio, I would comfortably be able to pay mortgage even if no income for a year. With the desirable 1 bed flat with assumed redundancy pay of at least 8k i would be able to pay mortgage for a year. I suppose i could stay in current job for 6 month longer. 

Provided you are relatively certain it will be relatively easy to find a new job if need be, I would go for the better property. It will probably be also easier to sell. It doesn't sound like you are stretching yourself to the limit. (But this time I would choose a conveyancing solicitor with no completion - no fee using friends/family recommendations, make sure you get the cost of searches back if the sale fall through for a reason which is not your fault, still puzzled as to how you managed to lose 3K)...

F37A

Emily_Joy said:

F37A said:

Emily_Joy said:

F37A said:

Emily_Joy said:

Sort out the job first. Make sure it is relarively secure/get an insurance. Then look for accommodation. 

But i'm so desperate to buy as this is a good year to buy with prices falling

Great. Will you be able to afford mortgage if for whatever reason you do not have any income for a year? 

Thanks for help. With the studio, I would comfortably be able to pay mortgage even if no income for a year. With the desirable 1 bed flat with assumed redundancy pay of at least 8k i would be able to pay mortgage for a year. I suppose i could stay in current job for 6 month longer. 

Provided you are relatively certain it will be relatively easy to find a new job if need be, I would go for the better property. It will probably be also easier to sell. It doesn't sound like you are stretching yourself to the limit. (But this time I would choose a conveyancing solicitor with no completion - no fee using friends/family recommendations, make sure you get the cost of searches back if the sale fall through for a reason which is not your fault, still puzzled as to how you managed to lose 3K)...

Thanks for help. Yeah I think as the  1  bed flat is spacious and good amenities it will sell worse case or would be a good rental. Yeah noted on the no sale no fee solicitor i am tired of costs. I'm finding for a reasonably good firm charging 3.5k for legal fee for an associate in london, outside of londond a senior associate is 3.5k again for a good firm