quick survey: ftbs in London

Generali

If you want to buy a place and aren't looking to sell for a very long time then there's almost no risk (as long as you can keep up the payments). Even if the place does halve in price, once you discount that over 10 or 20 years the loss isn't massive.

SerenaGoode

wafer wrote: »

Hi everyone,

Just a quick survey to see if there any other ftbs out there right now, like me, in the process of buying a property in London despite all the negative news. Reports keep saying there are no ftbs out there right now and other people say I should wait. Are there any other ftbs around who would like to share their views?

What are your reasons for buying now?

Mine are...
flat with 3 beds with share of freehold so will have room for future family (currently just my husband and I ).
good area
near to good school
would not be able afford a 3 bed house in the same area
these properties with share of freehold do not come up that often
thinking living long term here, def. upto 10 yrs
have been looking for years and this is the best of the bunch

Oh, two more quick thoughts.

1) Share of freehold can actually turn into a problem as it involves negotations with other freeholders over any necessary repairs and (for instance) the ground floor flat may refuse to pay out for roof repairs that the top floor flat sees as crucial.

2) Is it rude to ask which area of London you're referring to? I find people have very different ideas of what a good area is...

carolt

SerenaGoode wrote: »

However, as a dyed in the wool Londoner I'd be very reluctant to suggest the Hertofrdshire option at this stage. I've looked long and hard at prices over the last twenty years or so, and even now the differentials suggest that the areas surrounding London are more overpriced than London. so if London falls, Hertfordshire might fall by more.

Interesting - but while it's possible that Herts prices could fall further in percentage terms, as they're so much cheaper in cash terms, you'd still end up losing less, eg if a house costing 300K falls by 50% you've lost 150K; if you buy one costing 500K and it falls only 40%, you've lost 200K. Not sure if I agree anyway, as to the general analysis, but then, like London, Herts is a big area, so there is probably more to sustain prices in some parts than others.

Should add, I wouldn't recommend buying in Herts either at the moment as a FTB - think it's far too risky a bet.

I too remember the last crash only too well - and neither London nor Herts were immune - far from it...

SerenaGoode

carolt wrote: »

Interesting - but while it's possible that Herts prices could fall further in percentage terms, as they're so much cheaper in cash terms, you'd still end up losing less, eg if a house costing 300K falls by 50% you've lost 150K; if you buy one costing 500K and it falls only 40%, you've lost 200K. Not sure if I agree anyway, as to the general analysis, but then, like London, Herts is a big area, so there is probably more to sustain prices in some parts than others.

Should add, I wouldn't recommend buying in Herts either at the moment as a FTB - think it's far too risky a bet.

I too remember the last crash only too well - and neither London nor Herts were immune - far from it...

I suppose my thinking is partly based on having considered moving out of London a few times over the years. Most often you could buy something significantly nicer outside London than in London, but that really hasn't been true to the same degree over the last few years. Maybe it's just about back there now.

Fair point about how much you'll lose, though that's could also be an argument in general for buying something at the low end, which might or might not be the best plan just now.

wafer_2

Hi everybody

Thanks for the comments, it sounds like I am the only FTB here who is buying :-(.

SerenaGoode, the area I am buying is in Ealing, zone 3. My plan is that if I start a family, my in-laws will look after them.

SerenaGoode

wafer wrote: »

Hi everybody

Thanks for the comments, it sounds like I am the only FTB here who is buying :-(.

SerenaGoode, the area I am buying is in Ealing, zone 3. My plan is that if I start a family, my in-laws will look after them.

Thanks. Personally I think Ealing is a decent area that should hold value reasonably well. My bugbear is people that overrate 'up and coming areas' but doesn't sound like you're doing that.

PasturesNew

wafer wrote: »

Thanks for the comments, it sounds like I am the only FTB here who is buying :-(.

It's OK, we chased the others off.

At the end of the day, read what is said here, but it's your life/money/happiness and you have the final say over what YOU think is going on and how you think your life will progress and how your needs will change and be met or not.

wafer wrote: »

SerenaGoode, the area I am buying is in Ealing, zone 3. My plan is that if I start a family, my in-laws will look after them.

Your plan is fine. But what if circumstances change?
What if you lose your job?
What if your in-laws have to move?
What if your in-laws are no longer able to look after them (illness/death)?

It's great to have plans. But you also need to have a contingency plan.

Every plan has 3 parts:
- The Plan - the one you expect to go with
- The Contingency Plan - in case things don't go right what tweaks can you make
- The Exit Plan - how you plan to get out of the plan entirely if there is a major irreversible change

Yours

PasturesNew
Prince2 Practitioner/Project Manager

carolt

Agree with PasturesNew - you'd be amazed how things can change from your initial plans, particularly once you have children. For a start, though it's a cliche I know, you may find that once you have kids (assuming that this goes to plan) you do not actually want to leave them with your in-laws once you return to work - even assuming that in practice your in-laws are able and happy to do this. You might find it almost impossible to drag yourself back to work. You may discover that a flat in London, so appealing when you were childless, is not remotely where you want to be once you have kids.

If you had told me 10 years ago I'd now be living in a village with 3 kids, AND enjoying it - I'd never have believed you - I'm a big city girl through and through. But things can change and the trouble with buying now is that if prices fall, you may find yourself stuck somewhere unsuitable for quite some time.

Anyway, hope it all works out for you. Good luck!