Buying a property in London

[IRunSoFarAway]

True... I think i'm comparing it to older people I know..
For example, my Grandfather got married at 20 to my Grandma, and they bought a house straight away. It was the way things were then...

It just irritates me how hard it is now.

You really can't compare things back then to how thing's are now, you can thank 900%+ inflation for that.

[Eximess]

It's a funny thing you should mention this, seeing as it's a situation created by Thatcher.

[Reeve]

You really can't compare things back then to how thing's are now, you can thank 900%+ inflation for that.

Well it's more that the wages haven't kept pace with inflation that's the issue.

[WskyDK]

Yeah, I'd like to make it on my own, like everyone should be able to who work hard

Best of luck to you in it. Please keep us (or at least me) up to date on how it goes

---------- Post added 2013-04-08 at 01:20 PM ----------

It's a funny thing you should mention this, seeing as it's a situation created by capitalism.

Fixt for ya

[Deleted]

I'm just going to throw this out there...

Looking at bigger properties, like 3 - 4 bedroom houses. Back where I used to live, they go for around £200k. Very nice area, beautiful buildings with large gardens.

Compare that style and size of house with those similar where I live now, are around the £1.6million mark. I understand first time buyers have NO chance in high heaven to be able to afford these properties, but isn't that just WAY too high?? The only way one could afford to move into something like this, is if the property you currently live in sells for 1.5million or something.


I don't know, I'm mumbling and getting grumpy about it all now! Losing my point...


I understand that next year a government loan is coming into play to help you with the 20% deposit.. We'll just have to see how that goes.

[Phinxx]

Not going to lie I have only read your opening post to start the thread and nothing more but;

Essentially you will be wanting to look at one of the areas outside London anything outside the (M25). Lets say for example you work around the Canary Wharf area, if you lived around Shenfield or Chelmsford you can get to Stratford in 15-20mins and then the DLR to the Wharf from there. I usually get the train at 8am and get to work there around 8.30am. The cost of this is around 3-4k per year (including your oyster fees) and your employer can make this cheaper by paying for your yearly ticket to Stratford and then you pay them back each month from your salary so you dont have to pay the 3k+ up front.

Advantage is that house prices are incredibly cheaper, and you can get easily get a semi detached for 240k, and should you venture further out maybe even a bigger house but then you got to think about car park fees and how you will get to the station etc. Obviously if you look at homes near town centres they are going to be more expensive and you wont get as much bang for you buck.

Hope this helps.

---------- Post added 2013-04-08 at 11:44 PM ----------

oh and dont forget you need at least 10% of whatever the house is worth as a deposit, and you will need to carry out ordinance surveys (or w/e they called to make sure the building is structurally sound etc which cost like 1k each).

And soon there will be the government scheme of providing a 5% down payment, then they give you a loan of 40% of the house's worth, and then the rest of the mortgage will be through the bank or building society. This looks like the best way to get on the property ladder, but i duno how much interest the government are expecting on that 40% (if any as they say this is like a free 40% loan as it is secured against the value of your house and details are currently being finalised. Expect it to go live around winter time i can imagine.

[Deleted]

Not going to lie I have only read your opening post to start the thread and nothing more but;

Essentially you will be wanting to look at one of the areas outside London anything outside the (M25). Lets say for example you work around the Canary Wharf area, if you lived around Shenfield or Chelmsford you can get to Stratford in 15-20mins and then the DLR to the Wharf from there. I usually get the train at 8am and get to work there around 8.30am. The cost of this is around 3-4k per year (including your oyster fees) and your employer can make this cheaper by paying for your yearly ticket to Stratford and then you pay them back each month from your salary so you dont have to pay the 3k+ up front.

Advantage is that house prices are incredibly cheaper, and you can get easily get a semi detached for 240k, and should you venture further out maybe even a bigger house but then you got to think about car park fees and how you will get to the station etc. Obviously if you look at homes near town centres they are going to be more expensive and you wont get as much bang for you buck.

Hope this helps.

Hey buddy, thanks for your input.

I work in west London, Chiswick, and was looking at buying around the Kingston/Surbiton area, where property is certainly a lot cheaper.
I'm just moaning a bit, that's all! Also, being new(ish) to London, the surrounding areas aren't too well known to me. It's something I have to research more.

I was hoping to buy as soon as possible as I'm sick of 'throwing' my money away in rent. I'd love to be able to buy, then move back up north in several years time and be able to get a real nice property.

I dno, will see how it goes!

[Deleted]

Hey buddy, thanks for your input.

I work in west London, Chiswick, and was looking at buying around the Kingston/Surbiton area, where property is certainly a lot cheaper.
I'm just moaning a bit, that's all! Also, being new(ish) to London, the surrounding areas aren't too well known to me. It's something I have to research more.

I was hoping to buy as soon as possible as I'm sick of 'throwing' my money away in rent. I'd love to be able to buy, then move back up north in several years time and be able to get a real nice property.

I dno, will see how it goes!

kingston is probably one of the most expensive areas of London by the way.

[FathomFear]

I was hoping to buy as soon as possible as I'm sick of 'throwing' my money away in rent. I'd love to be able to buy, then move back up north in several years time and be able to get a real nice property.

I dno, will see how it goes!

One suggestion--I would research the rent vs. own breakpoints for the particular area you want to live in. In many places in the world right now, it just makes no financial sense to take on a mortgage.

It's tempting to view renting as "throwing away" money, but I would suggest that this is a mindset problem. When you rent, you aren't "getting nothing" out of it. You get shelter, a place to keep your stuff, proximity to desires areas, etc. These are tangible benefits that are worth money.

For me, I actually make a little north of $75,000 (CDN) a year, and I have around $430,000 in assets saved. I could easily buy a house--even outright in cash. However, I still rent. Why? Because real estate is a VERY risky investment in our day and age. You could easily buy a home for 250k and see it go down in value. This is what caused the financial crisis in 2008, when tons of people found themselves with underwater mortgages. In most cases, unless you know for 100% sure that you're going to stay in one area for 15+ years, it just makes more economic sense to rent.

TLDR--reseach the rent vs. buy breakpoints for London. You need to take a long and hard look at the financials. Shrug away simplistic biases against renting and approach it with an open mind, as you may discover that renting is the superior choice.

[Deleted]

That's why a large chunk of people working in the city commute to it.

I've never liked London, it's an awful place and ridiculously expensive for properties that aren't even that nice in most cases.

I'd buy a place just outside and commute each day. £240k will buy you a fairly nice property on the outskirts of London.

[Deleted]

kingston is probably one of the most expensive areas of London by the way.

Nah, it's not too bad. Well, compared to Putney where I live at the moment. Kingston and Surbiton are more affordable.

[Deleted]

Also, depending on where you move to in London, I'd speak to the neighbours and ask them about the area and try and get a general feel of who you're going to be surrounded by.

I owned a home in London for maybe 2 months before I sold it because I was surrounded by stuck-up pricks.

[Deleted]

One suggestion--I would research the rent vs. own breakpoints for the particular area you want to live in. In many places in the world right now, it just makes no financial sense to take on a mortgage.

It's tempting to view renting as "throwing away" money, but I would suggest that this is a mindset problem. When you rent, you aren't "getting nothing" out of it. You get shelter, a place to keep your stuff, proximity to desires areas, etc. These are tangible benefits that are worth money.

For me, I actually make a little north of $75,000 (CDN) a year, and I have around $430,000 in assets saved. I could easily buy a house--even outright in cash. However, I still rent. Why? Because real estate is a VERY risky investment in our day and age. You could easily buy a home for 250k and see it go down in value. This is what caused the financial crisis in 2008, when tons of people found themselves with underwater mortgages. In most cases, unless you know for 100% sure that you're going to stay in one area for 15+ years, it just makes more economic sense to rent.

TLDR--reseach the rent vs. buy breakpoints for London. You need to take a long and hard look at the financials. Shrug away simplistic biases against renting and approach it with an open mind, as you may discover that renting is the superior choice.

I sort of see what you're saying..

But take the scenario you just said:

1. You keep renting - paying monthly for the roof over your head. Not investing.

2. You buy - Pay monthly like rent, but then when you move on, you sell.

Even if you sell for less than you bought, you would have still have 'thrown away' less money than renting.

I think this is only if one can afford the house outright though.. If you went in with a small deposit, the rent scenario, like you said, is risk free.

[Deleted]

That's why a large chunk of people working in the city commute to it.

I've never liked London, it's an awful place and ridiculously expensive for properties that aren't even that nice in most cases.

I'd buy a place just outside and commute each day. £240k will buy you a fairly nice property on the outskirts of London.

yeah I live I a town outside London, a lot of people here commute to London for work, I'm not sure on costs but the train from here to paddington takes around 30mins, to chiswick probably about the same, I think you would have to change trains at Ealing or paddington, and in a few years were getting a tube stop here which I think the line goes near chiswick.

[Deleted]

That's why a large chunk of people working in the city commute to it.

I've never liked London, it's an awful place and ridiculously expensive for properties that aren't even that nice in most cases.

I'd buy a place just outside and commute each day. £240k will buy you a fairly nice property on the outskirts of London.

But what areas come under the 'outskirts'? I guess it can be different depending on how long people are willing to commute.
You see, to me, I would say that Surbiton is on the outskirts.

But then again, that's the view of me being someone NOT from London :P

[Deleted]

yeah I live I a town outside London, a lot of people here commute to London for work, I'm not sure on costs but the train from here to paddington takes around 30mins, to chiswick probably about the same, I think you would have to change trains at Ealing or paddington, and in a few years were getting a tube stop here which I think the line goes near chiswick.

Nice!

I think it's taken them a bit too long to upgrade the infrastructure to make the inner-city more accessible to the outer areas for commuters. I've seen the trains in the morning and all I can say is I hope no-one on it is claustrophobic lol.

[Deleted]

Nice!

I think it's taken them a bit too long to upgrade the infrastructure to make the inner-city more accessible to the outer areas for commuters. I've seen the trains in the morning and all I can say is I hope no-one on it is claustrophobic lol.

when I first went to london I tried to take the tube from Waterloo at 8am, big big mistake!

[Deleted]

yeah I live I a town outside London, a lot of people here commute to London for work, I'm not sure on costs but the train from here to paddington takes around 30mins, to chiswick probably about the same, I think you would have to change trains at Ealing or paddington, and in a few years were getting a tube stop here which I think the line goes near chiswick.

Out of interest, where is your nearest station?
I'll look into how long it would take me to get to work

Thing is, I don't work normal hours either... Which I know is my choice, but commuting on a weekend is terrible! lol

[Deleted]

But what areas come under the 'outskirts'? I guess it can be different depending on how long people are willing to commute.
You see, to me, I would say that Surbiton is on the outskirts.

But then again, that's the view of me being someone NOT from London :P

Well anywhere within 30 miles I'd say. You're probably looking at an hour commute either way, which sucks, but I'm sure you would get used to it.

Places like Uxbridge have some nice places, anywhere from there inwards surrounding London and you should be set.

[Deleted]

Out of interest, where is your nearest station?
I'll look into how long it would take me to get to work

Thing is, I don't work normal hours either... Which I know is my choice, but commuting on a weekend is terrible! lol

maidenhead, I think it would take a while from here, there are two different trains basically, both go to paddington, but one stops every 5mins at every station in the way and takes nearly an hour, the other only stops 3 times and takes 30mins. To get to chiswick you would probably have to go from here to Ealing, then change and would take a long time. Should look at which places are easily accekible to chiswick.