To wonder how ordinary people afford to live in such expensive places?

[Sienna290]

I have been job hunting and I saw a position based in Kent. I am not planning to apply for it but just out of curiosity I went on Rightmove to see how much it would cost to live there.

I earn 52,000 and would have a deposit of 50 so I was looking at around quarter of a million for starters. This would buy me - a rundown terrace or a one bed / studio flat.

Do most people buy in couples? Or is this just how it is in expensive towns and cities - ordinary people don’t live there!

Some of my friends have bought in their home towns to get on the ladder rent it out & then rent in London. Plan is at least they have an home when they retire. Obvs this exacerbates the problem but they don't want to spend lots of money & time commuting.

Some neighbours & friends have moved to other cities (where they have links) eg Bristol. They had healthy budgets 800k plus but they are in their 30s & want to enjoy their disposable income a bit more as opposed to tying it up in property & they wanted more than the small terrace with no parking. However their jobs pay well outside of London (I.T, accountants, GP, surgeon)

I should say, we haven't finished yet! Just putting in a new kitchen and then need to rip out the existing kitchen for what will be the second bedroom. The structural works immediately followed by a baby really slowed things down (I was terrified of the potential damage structural work could do to the other flats).

NewYearsRevolution2020

Incorrect about the huge deposit/salary. I earn 45k, have about 15k for a deposit (originally was going to put down 5% but managed to save a bit more). Buying the flat for 200k in SE London. I do intent to do it up a bit but it certainly isn’t what I’d describe as grotty, it’s just a bit bland at the moment (magnolia walls etc, it’s been previously rented out). It’s above a shop which I don’t mind at all but I’ve seen people on here describe flats above shops as ‘grim’. I intend to live there long term rather than trying to flip it and make money, personally I think it’s a perfect home for me

Same in oxford

Kent, Oxford, London... It's like you a paying through the nose to breathe the shittiest air in the country.

Most single people I know who live in expensive areas are in flat/house shares (they're my age, which is late 30s...). People also live in cheaper areas and commute (which eats up time and money in a different way). The only exceptions are people on very high salaries or those who were gifted money by parents/received an inheritance. Couples tend to rent/own because 2 salaries gives much greater flexibility (and they can be lower salaries because combined they give more security and spending power).

I married in my early twenties, and we ruled out living anywhere expensive because having stability from home ownership and savings/nice holidays was more important to us than living in the South East (I'm originally from Essex so had to move away from family). We've lived in the NW, East Midlands and will soon move to Scotland. We didn't have family help to buy so our choices were limited. We could earn more in the SE but not enough more to outweigh the high living costs.

Think most people buy as a couple . They may also has equity from previous house or had help from parents or inheritance. At least you can afford to buy something, many others wouldn't be able to buy at all.

We live in a crazily expensive area, at least it is now. But when my DH bought our place in 2007, it was always a nice area but quite so desirable as it is now! There is no way we could afford our place now at its current value. But it also means we are kind of stuck where we are now if we want to stay in the area (which we do), and our house is now bursting at the seams!

Agree wit lots of other posters - most people do buy in couples.

Or they bought young a long time ago. We live London/Kent border and live in s 5 bed semi. People do often ask how we afforded it, but it started by us buying a flat in Thamesmead in 1998. Increasing prices and wages allowed us to move twice and end up here.

Dd (19) saved enough to buy a grotty, tiny 1 bed flat up north for cash (under £20k)

She is doing it up, hoping to spend around & £5-7000 on it. Less if she can.

Then when it is done she is hoping to sell it for about £33000 then buy another one and another and another slowly working her way further south

Her problem is finding time to do the place up and earn enough to pay for the renovation at the same time.
She works strange hours and doesn’t have set days off as she is self employed

Where does she live @Oliversmumsarmy?

@dodgeballchamp. Could you say, roughly where it is. I am looking to do the same and have noticed a lot of (spacious) above shop flats.

parsnippoop

We live in London

@NewYearsRevolution2020

I’d be careful with those flats above shops. They might be lovely but only until the shop gets replaced with a smelly takeaway. I’ve been to a couple of those and you can’t get away from the stench. They also tend to be on busy, noisy roads.

So your dd lives at home whilst she renovates?

Look for shared ownership properties.

There are quite a few nice (starter home) properties in Kent for that budget as long as you don’t mean the bit that’s literally London like Bromley or the super expensive towns like Whitstable or Tunbridge Wells. Even then I’ve just found this nice flat for sale in TW and seen some cute cottages in Canterbury and Faversham.
www.rightmove.co.uk/property-for-sale/property-71884243.html

I've just discovered the interest only mortgage- probably that. and debt.

The home counties are full of London commuters and it's more common than people realise to earn 70/80/90k each and buy as a high earning couple, plus have parental help with deposit.

Eg DH and I are part of a group of mates (DH school friends and wives). There are 8 couples. None have combined income sub 100k, most are over 150k. All have had help from parents with first deposits ranging from 35k to over 100k. London really is a bubble for this.

I live above a shop and it's fine. Takeaways are a separate planning category so it's a lot harder to change an existing shop into a takeaway.

There's also upsides to living here, I am less than 2 minutes walk away from everything and can watch all the village parades from my own living room!

I am amazed at the salaries people talk about. Over 50l a year for what kind of jobs? Lawyers, surgeons, etc I understand. High end tech and financing too but most other jobs are below 35k.

I am constantly looking at jobs.

@CuteOrangeElephant I think there was always a stigma to living above a shop but as you say there can be some really good deals. And if you are happy, who cares? Wasn’t Bridget Jone’s flat above a shop/restaurant?!!!

Do most people buy in couples?

I think so yes. I live in London and could never have bought without DH - and vice versa!

I bought the run-down terrace, did it up over my weekends, made it pretty and sold it for £50k more. Then bought a run-down 3 bed semi, did the same etc.

I've done it four times now. When ds leaves home and I retire, I'll do one more when I downsize.

It was the only way I could manage.

So your dd lives at home whilst she renovates

Yes. At 19 and with being self employed I doubt any landlord would touch her.