London House Goals

Hi Monkeys,

Bit random but what age and comp/deposit are people going to / have stopped renting and buy a place in London. Even on 100k all in salary and a decent deposit say 120k, you can buy an "OK" 1 bed in zone 1 on a mortgage. i.e. 100 x 4.5 + 120 = 560

Not sure whether its better to get on the ladder asap with something half decent considering how property continues to spiral into > unaffordable and then trade up. 

or save + invest and rent and wait till you can mortgage something that would to most "normal" people consider comfortable endgame i.e. ~1m

Happy to get some perspectives! 

NB - I probably won't get into MF

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Comments (25)

Nov 5, 2021 - 7:07pm

Anonymous Monkey

Hi Monkeys,

Bit random but what age and comp/deposit are people going to / have stopped renting and buy a place in London. Even on 100k all in salary and a decent deposit say 120k, you can buy an "OK" 1 bed in zone 1 on a mortgage. i.e. 100 x 4.5 + 120 = 560

Not sure whether its better to get on the ladder asap with something half decent considering how property continues to spiral into > unaffordable and then trade up. 

or save + invest and rent and wait till you can mortgage something that would to most "normal" people consider comfortable endgame i.e. ~1m

Happy to get some perspectives! 

NB - I probably won't get into MF

If you live in London the chances of getting a cheap detached house is almost impossible if you make less than 150k pounds. So, I say jump in now and work your way up. With all the other crazy taxes and Boris's plan to add more taxes best to get something asap. Build equity.

SafariJoe, wins again!
Nov 6, 2021 - 7:44am

Worth noting that some banks will consider a certain % of bonus as consistent income if you can show a history.

But I've been having similar thoughts. I've come to the conclusion it's best to find a place you'd be happy living for 5+ years and then find something endgame thereafter, depending on life circumstances, once you've built equity, comp, deposit. 

Nov 6, 2021 - 2:21pm

I just bought a 3 bed a bit further out for under £600k going to rent the other two rooms out so it becomes a self sustaining economy. better that then paying £2k a month to rent a 1bed that you cant swing a cat in.

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Nov 6, 2021 - 3:22pm

Is it okay if I PM you? I was considering buying a 2bed in Essex for about 350k and renting out one of the rooms. I just feel like doing it though will tie me to that location and who knows if I suddenly have to move in the next two years from taking out the mortgage

Nov 6, 2021 - 7:13pm

Can do. Essex will definitely be a good area for capital appreciation. I looked at Essex too, the only think that put me off was the transport links, think theres only one trainline in to the city.. but doesnt really matter if you can WFH. you could rent both rooms out easily if you had to move. 

  • 1
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Nov 6, 2021 - 9:07pm

Lance theromance

Is it okay if I PM you? I was considering buying a 2bed in Essex for about 350k and renting out one of the rooms. I just feel like doing it though will tie me to that location and who knows if I suddenly have to move in the next two years from taking out the mortgage

If you can go for a three bed instead. For equity reasons.

SafariJoe, wins again!
Nov 7, 2021 - 5:29pm

3 mins walk to first train station, train journey is 3 mins back a stop to station where I can get the express train, express train comes every 4 minutes, takes 24mins to destination, 3 minutes walk from final train station to office , so all in ~35 minutes. 

I've only been in the office once in two years and that was a few weeks ago to get a corporate photo taken for marketing material and to meet my team for the first time. 

in future should only be in the office max 3 days a week, and I will cycle to work in the morning which will take about 40-50mins.

  • 3
Most Helpful
Nov 7, 2021 - 6:28pm

I made a huge mistake when I moved in to my first flat in London. moved in to zone 2 (or 3), which should have been a 20 min tube into the city. on paper that was great, until the first morning I went to the tube station at 8am and couldn't get on the carriage. I couldn't deal with waiting for a tube with a slight space I could squeeze in to in the mornings, it ended up driving me crazy and the journey itself was so uncomfortable (peoples armpits in my face, flaming hot, no air con, girls asses pushing in to my crotch and looking at me as is if i'm going around rubbing my cock on all the commuters) that had to change, so I started getting the tube back 5-6 stops to the beginning where I could get a seat and I'd meditate or read a book on the way in to work. that would take about 50 mins door to door. 

now that I cycle a bit, im annoyed at myself I didnt cycle in to work while I lived there because in hindsight it was only 4-5miles in a cycle lane. recently ive been doing 30-40mile cycles at the weekends and it takes no time at all, sometimes I dread it like you mention but once youre out there, you realise it doesnt actually take much effort (like say, a jog would),sometimes forget im cycling sometimes and it becomes almost meditative. you should try cycling to work, you'll be fresh minded by the time you get there and will have your daily exercise out of the way first thing. plus I heard cycling is like a fertiliser for neurons, apparently.

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Nov 7, 2021 - 6:34pm

your 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Nov 8, 2021 - 7:47am

I will be set to inherit some property with some of the mortgage still left to pay off, and the only way I'm affording IHT is if I sell the property haha. If anyone knows any good tax advisors or how to go about this please do let me know.

In answer to your question specifically, will look in my early 30s once I have settled into my career and with a partner. Probably look to aldgate east or something like that where they sell the fancy flats (you know the high rise towers). Or maybe if I have kids somewhere more in zone 3/4. My dream would be a place near Regent's Park or Bayswater but unless my investments 10x idt that's happening lol

Nov 29, 2021 - 9:06am

It all depends on what you imagine when you talk about normal people. So many renters live in comfortable apartments and don't plan to buy their own place. Mortgages for such people seem to be something fictitious that will not affect them. I prefer to have my own home because renting now is very expensive and if you count all the expenses, you can realize that it is not profitable. Do you agree with me? There are many advantages to owning your own home, from organic furniture from Ikea to license plates from https://baliandboo.com/collections/house-signs. It has its own value, so I choose to live in my home.

Dec 8, 2021 - 9:02am

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