What's the risk in buying a flat?

MultiFuelBurner

Hope you don't mind me adding but as you are used to a HMO living situation you may want to push yourself for a 2 bed and rent out the second bedroom.

Just a thought 

Zuzi

Sarah1Mitty2 said:

Zuzi said:

It feels scary to know that my savings could be wiped out by using them as a deposit AND I would have a huge debt in my name, but I do have a good income, don't spend much and it just feels like I should do this, most people seem to manage it in this country after all 

Yes, that would be a financial disaster.

Isn't that how buying a property with a mortgage works though?  I don't think it would be much different from how most people buy their houses/flats?

Zuzi

Thanks everyone for your comments, they make for quite a sobering reading. I don't have the money or need for a house, I live on my own, so that is out of question.

TOP_CAT

The fact exists that its now possible for you right now or in the near future to buy a flat in London ?

Do not under estimate this chance or how long this chance will last in a london area you want !
London wont wait for you ..just look at how people cant even afford to own a car in london let alone a flat or house ?

My point is buy now or never could very well be a reality...if you think buying in london will get easier as you age ...I think you are completely wrong unless you have financial support in those later years from elsewhere

At 50 if you even have a job that can pay a london 2033 mortgage cost what are your chances at 2033 prices ....
It wont be easier it will be harder vs what now is possible....it never gets easier only harder

London moves real fast and your not getting any younger or stronger ie your health etc your youth is gone and no job is forever .

Start the painful buying process now so you have security at 50-60 plus years because at 50-60 yrs old the chance may not exist at all .

Moving around HMO,s in your 50,s and 60,s in 2033-2043 will be survival not security at a time in your life you will be slowing down ..






 

steve866

MultiFuelBurner said:

Hope you don't mind me adding but as you are used to a HMO living situation you may want to push yourself for a 2 bed and rent out the second bedroom.

Just a thought 

I did this on my first home and compromised on area to do so. Was a great financial decision. I used the rent to overpay my mortgage and built equity to be used for deposit for next purchase 

thegreenone

If you are in your early 40s now, it's definitely time to buy.  A 25 year mortgage will take you to (the current!!!) retirement age or thereabouts.  You can retire knowing that the roof over your head is all yours. 

If you can stretch to a 2 bed and have a lodger, hopefully (as above) you can overpay the mortgage a bit and put a little extra into your pension, all the better.