Is it possible to buy a property in zone 1 for £500k and is now a good time?

[TroutQuintet]

We are planning to downsize now that the DC have all left for uni etc. We want to retire in a few years and looking ahead would like to have a base in central London close to theatres etc. The budget is £500k. I know we could get more for our money further out but we don't really need a lot of space - I just find with more space there is a tendency to acquire more clutter.

We would prefer a period property/mansion block and preferably 1-2 bedrooms near to tube/bus links.

I have been watching the property market for about 18 months and the prices definitely seem to have dropped in central London, but they still seem quite high, and I am wondering if they will drop further when interest rates rise, as they surely will after the election.

So do you think it is doable to find what I want in z1 for £500k and is now a good time to buy or is it better to wait? All advice/comments greatly appreciated!

I wouldn't bet on a rate rise, although many of us would love it. Keeping kicking the savers is an easy way to raise money.

it is possible in your budget, although I doubt you'll get a 'period' block.

Interest rated not likely to rise until 2016. Various forecasts of increase to 0.75% maybe august next year. There's a will to have a soft landing for the housing market so unrealistic to expect much in the way of house prices falling, esp. In London. I suppose there's some chance that labour government could scare away the influx of global rich investing in London but seems like grandstanding and Tory rhetoric.

Can't advise on when would be a good time as it's just a gamble on whether the economy will now start to improve or stay flat.

Thanks for your replies and I agree that it is difficult to predict what lies ahead.

Special, where do you think I would have the best chance of finding what I want? I was thinking of SE1 but it seems a bit mixed.

Entirely possible around Bermondsey/borough/London Bridge, right on the southbank (too many cultural offerings to list) and very close to Covent Garden/theatre land, huge amount of redevelopment and regeneration brought on by the shard, so should achieve above average capital appreciation in the medium to long run (or a less dramatic fall depending on where the market heads after the election)

Op x-posted, but se1 is a good bet

Ive been signed up to Rightmove for the last 18 months looking at properties in SE1 in a similar price bracket.

Im getting the odd ex LA property coming in around that price; those flats have far better sized rooms, but the general areas they sit in don't look that good IYSWIM...

Mind you, the number of properties hitting my inbox has slowed considerably in the last 6 weeks or so. Suspect the election is the culprit.

I can only go by rightmove and occasional visits to London - I think you need a local!

Born and bred Londoner here. I would say you have no chance in a nice area that's also very . Either be more central and live somewhere in a shittier area, or live further out but get more for your money.

For 2 beds I think you'd be looking at ex-LA properties, but some are in OK areas (Angel, Borough, Edgeware Rd, Aldgate East) though obviously not prime central London.

If you're prepared to just have a 1 bed you could certainly get something period in a nice area and close to transport - e.g.

Angel period conversion www.rightmove.co.uk/property-for-sale/property-33359481.html

Russell Sq 1930s block www.rightmove.co.uk/property-for-sale/property-50329313.html?premiumA=true

Farringdon Victorian conversion www.rightmove.co.uk/property-for-sale/property-51501014.html

Marylebone period conversion www.rightmove.co.uk/property-for-sale/property-30163143.html

We have a small 2 bed flat in zone 1 and it's fantastic living close to so many attractions and not worrying about rushing home for the last train to the suburbs. It's great for the dcs as well as there's always something to do after school and at weekends. Definitely worth paying the central London premium for, if you have the budget. I think if you're looking for your home for the long term, there's no point trying to time the market, just focus on your housing needs now and whether there's something you can afford at this time.

Thanks Cherry, that's really helpful and some great suggestions there. I agree that life is for living now and probably I am getting too worried about stuff I can't predict.

Have you looked in Wapping? It sneaks into zone 2 but is just along the river from Tower Bridge. It's starting to get quite a villagey feel about it too. Transport links are good via the Overground which will connect you to the Jubilee and district line. Busses to will take you to Liverpool Street.

I wouldn't fix too hard on the Zone 1 thing. I don't think you'd get anything much in the parts of Zone 1 that mean wonderful stuff is literally on the doorstep, and you'll get more by going into the nice bits of Zone 2.

That said, I like the Woburn place one linked above, for location.

Re 'is now a good time', I really don't know if anyone can ever know. When we bought we thought it was a crap time, turns out it was right before the enormo-hike we've just come to the end of. The little plateau we seem to be having seems as good a time as any really - if something happens to make the market properly crash then we're all stuffed anyway, I figure!

Thanks very much for the further comments. I would rather sacrifice space for location, so I think we will need to look for a one bedder unless we get lucky!

grumble - I take your point about any crash/timing.

If this is going to be your only property my concerns would be that it's going to be very difficult to entertain grown up children / grandchildren anywhere so tiny and also that possible properties are so small they have very little scope to modify e.g. If you ever needed an accessible bathroom.

This would not be our only home, but we would plan to be there for about half of the time, and yes I am wondering about having enough space for the grown up DC especially if they end up working in London for a while.

It's just that having moved out to Z3 and then out of London when the DC arrived for more space and garden etc, I feel that we should do what we want now they are nearly independent and even parts of zone 2 seem quite suburban. Maybe Camden would be an option, as it seems more central although it's zone 2 compared with some other places. However, I'm not sure £500k will buy much in Camden either!

If you'd be willing to look at SE17, Kennington, Oval or Vauxhall, you could get a period two bedroom or a nice purpose-built two bedroom.

SE17 is zone 1 (E&C) and Kennington tube is going to be changed from Zone 2 to Zone 1 as part of the nine elms extension of the Northern line. It's just a few stops on the tube from Leicester Square.

This one is about a 10 min walk from Kennington tube:
www.rightmove.co.uk/property-for-sale/property-51829268.html

This one nearer the tube but just over your budget:
www.rightmove.co.uk/property-for-sale/property-51687341.html

This one near Oval:
www.rightmove.co.uk/property-for-sale/property-33491016.html

This one is under offer but flats regularly come on in the same period block and they have a lovely cobbled street of artist studios at the back of the building:
www.rightmove.co.uk/property-for-sale/property-48355072.html

This one under offer v near tube:
www.rightmove.co.uk/property-for-sale/property-50697683.html

This is an article about the re-zoning of Kennington tube:
www.currell.com/blog/2014/05/new-tubes-in-battersea-to-be-in-zone-1/

Cunning, that's fantastic advice, thank you - will definitely look at Kennington, some really excellent suggestions.