Should I continue to Rent or Buy now - London

Windofchange

I would always advocate for owning where you can as opposed to renting. It sounds as though you like the place, but I’d think twice about the service charge and the flat. There are places in London where you can get a house for your budget, though that won’t be Balham of course. I can foresee issues for new(ish) build flats in London as they are ten a penny. There will be lots of people coming off their help to buy periods, or wanting to upsize like your buyers, and this will drive prices down. You are already seeing this - if this flat is identical to all the others then there is a struggle to sell it I’d suggest, hence the reduction in price. Lots of people brought these places on the help to buy, and lots will be trying to sell. Supply and demand. 

I think the service charge would also put me off. Is it capped / regulated other than people just meeting the management company? 5k a year is a lot even if it does cover your bills, and I’d rather have control over my outgoings myself. Ultimately as you know, only you can decide if the price is worth it. Certainly lots of benefits to living centrally assuming that you’re still in your partying / silly stage of life as a young adult. You’ll also as others have said be paying down a large debt / have some protection against inflation / rising rents etc. For me I’d look further out at places with a fast train into central, and I’d rather do that than live centrally in something half as big. There is no right answer, it’s your life. 

MoodyFirstTimeBuyer

Windofchange said:

I would always advocate for owning where you can as opposed to renting. It sounds as though you like the place, but I’d think twice about the service charge and the flat. There are places in London where you can get a house for your budget, though that won’t be Balham of course. I can foresee issues for new(ish) build flats in London as they are ten a penny. There will be lots of people coming off their help to buy periods, or wanting to upsize like your buyers, and this will drive prices down. You are already seeing this - if this flat is identical to all the others then there is a struggle to sell it I’d suggest, hence the reduction in price. Lots of people brought these places on the help to buy, and lots will be trying to sell. Supply and demand. 

I think the service charge would also put me off. Is it capped / regulated other than people just meeting the management company? 5k a year is a lot even if it does cover your bills, and I’d rather have control over my outgoings myself. Ultimately as you know, only you can decide if the price is worth it. Certainly lots of benefits to living centrally assuming that you’re still in your partying / silly stage of life as a young adult. You’ll also as others have said be paying down a large debt / have some protection against inflation / rising rents etc. For me I’d look further out at places with a fast train into central, and I’d rather do that than live centrally in something half as big. There is no right answer, it’s your life. 

Thank you for your message, really appreciate your views. 

For me I do see Balham as my home, partly because I have rented here for over 6 years now and enjoy the convenience of having shops nearby, underground and overground stations, parks like Wandsworth and Tooting. So I do find it difficult to see myself living anywhere else at this stage. Although I have looked across Wembley, Richmond, Sutton, Surbiton etc. 

I do agree with you regarding the service charges and it does really put me off buying the property given the cost. 

The flat is around 540sqft but know that I could probably go for something far bigger further out but then compromise on now having as easier/more convenient access to an underground station. 

BlueonBlue

If you continue on the renting path it will become a big expensive trap.
Get out of it whatever it takes... asp... then once secure you can re-evaluate

Another point is you should be able to save on 75 grand a year so if your not for whatever personal lifestyle reasons you must be having a good time !
Something perhaps needs a little more balance towards a mortgage and this purchase might do that or force it...just a thought ?

If you do buy it you need to be able to pay off a chunk of that mortgage during or after 5 years and then re evaluate.
If you cant do this on 75 grand now in the next 5 years you havent a hope in the future of saving as prices go higher .

London will only get busier ,denser and harder hence they are building upwards 
When a opportunity comes your way it will never last for long  or repeat itself so the first step is now or ??
How have you done so far leading up to now ?

You could end up on the outskirts renting a one bed because Balham is to expensive .
Doing something is way better than doing nothing or waiting for the stars to line up .
In the london one bed market that could mean waiting forever .

Windofchange

MoodyFirstTimeBuyer said:

Thank you for your message, really appreciate your views. 

For me I do see Balham as my home, partly because I have rented here for over 6 years now and enjoy the convenience of having shops nearby, underground and overground stations, parks like Wandsworth and Tooting. So I do find it difficult to see myself living anywhere else at this stage. Although I have looked across Wembley, Richmond, Sutton, Surbiton etc. 

I do agree with you regarding the service charges and it does really put me off buying the property given the cost. 

The flat is around 540sqft but know that I could probably go for something far bigger further out but then compromise on now having as easier/more convenient access to an underground station. 

You’ve probably got your answer then. If it feels like home, you can afford it and see yourself there a while then crack on. You come across as very sensible so I’m sure you’ll work it out.