Can I afford to buy in London? What's the catch?

[ScantiJHM]

I have received an incredibly good job offer with a tech firm and will soon be earning £75k + 10K bonus. I was originally going to be buying a property up North to rent out whilst I progress my career in London. However, now that I will be earning well, looking on Rightmove it looks like I can afford a 2 bed flat in London/Outer London for 300-350k which is within my budget. I'm not fussed on area at all having grown up on a council estate up North myself, so as long as the flat is close to a train station/tube station (with less than 1 hour journey) to central London I will be happy. However, I'm worried that I am missing something here, whenever property prices are discussed in London there is the overwhelming consensus that it is completely unaffordable, even for those on a salary similar to mine, am I missing something here? Is it because those on my salary wouldn't want to live in an area they deem rough? Or is there something wrong with a flat/house that isn't at least 500k plus?

For example, these are 2 flats that I have seen that look great and exactly what I am looking for but I can't seem to tell what the issue is...if there is anything?:

www.rightmove.co.uk/property-for-sale/property-93397040.html

www.rightmove.co.uk/property-for-sale/property-82230997.html

After tax, pension, student loan etc... I will be taking home £3741 and so I am willing to pay a maximum of £2000 on mortgage/service charges/ground rent and bills (electricity, gas, water and internet). I'm fortunate that I will be able to pay off all of my student loans (plan 1) on my salary, I have approx £20,000 left to pay and will be paying approx £5,000 a year so when I am 31 in 4 years time it will be paid off and that will mean an extra £400 in my paycheque every month. Hopefully by then I will have received some sort of promotion aswell if I stick with the company. I currently have £20k saved as a deposit with view in the next year to add another £30k, so will have a £50k deposit (I'm currently only paying £450 in rent in East London so can afford to save plenty at the moment).

Please could you advise if I'm missing something when it comes to buying a £300-350k property in London on my budget? Is there any advice/suggestions you can provide when it comes to buying property within my budget in London/Outer London?

It's location. Your budget won't buy a studio flat in, say, Fulham, but will be ok for a two bed where you are looking. When I think of London I don't think as far out as that. An hour commute and you could be quite a ways out.
Rent first so you know the location and neighbourhood - don't go by budget alone.

They are both nice looking flats although lol at 27 photos of the West Ham one! The SE12 flat is on a main road in a bit of a non-area. I don't know much about West Ham so couldn't really comment.

Often when people say they can't afford London they mean they can't afford a family home with garden near good schools and not too far out of the centre. What you are looking for is certainly more affordable.

Those two flats are not in the best location imo. Nothing wrong with your budget but get settled into your job first and as pp said, rent in a couple of areas and really get to know the neighbourhood before you make a purchase.
I am assuming you have a large deposit as you really dont want to borrow more than 3.5 x your income.

It depends what area you want to live. Some are cheaper than others cos they're further out from London. I live in zone 6 and could get a nice flat for £350k esp now when flats aren't so popular. But I'd also reccomended renting first if you're not used to London areas and consider the areas you'd like and your budgets etc and also if you like that job too!

I agree with renting in the area first before buying. Do you plan to stay in or near London long term? Do you want a family any time soon just another expense that may crop up OP. I would be tempted to buy up North as you can buy a lot more with your budget!

Also bear in mind atm you'll need a min 15% deposit which is over 50k in cash plus another 5k for legals and surveys and moving costs etc

Totally possible. In fact you could get a 2 bedroom flat in a nice area too. Look at flats in this price range in Winchmore Hill for example - postcode N21. No you are not missing anything. Not sure about your deposit but it sounds viable.

Price will be subject to location, type of property and condition. If it's too good to be true, look for why. For example ex council flats are cheaper, but some are really nice in great buildings but not everyone finds them attractive. Ultimately you want to think about saleability as this would likely not be you final home, so look at the whole picture and what makes the price what it is. If it fits your criteria go for it.

Strongly advise to get to know the area you are buying into! Either rent or do some serious research, walk the streets, come around at night, get a feel of the shopping experience and transport links.. good luck! I love house hunting.

Both flats are right on the train tracks - thats why!
It's generally that people don't watn an hour commute if they aer to enjoy London because the office hours tend to be long (in normal times), also yo need more disposable income if you go out a lot - again some think what's the pint living in London if you can't afford all the restaurants / theatre/ music events. Also again going back home late from these events and taking an hour to get back - not what they want.
So people tend to see it as quality life if they are either in zones 1-2, or if they are in a suburb but with a proper house and garden. Also for many it's about school catchment.
You do have more of a choice if you don't fall in either of these categories - and oblivious to train noise in the case of those links!

I lived in Greater London for a while. Main noise from the streets was police sirens (am lying, sometimes it might have been ambulances...). Local news (in the local paper) were typically about stabbings and arsons.
With a 75k salary, I'd pick a nicer place to live...

Quick Google check: www.quora.com/Is-Canning-Town-London-dangerous (answer: yes)
Grove Park doesn’t seem quite as bad, but do your research...

West Ham isn't an hour away. It is really well connected with 2 tube lines, the DLR and overground rail. It is only about 21minutes to Green Park on the Jubilee line.

Having said that, the area doesn't have much going for it apart from the Olympic park and Westfield shopping centre that are about 1.5 miles away

Yes, West Ham is zone 2/3 and on the tube so very well connected.

Both areas are pretty deprived and not popular with professionals so that’s why the prices are lower even with the excellent commute. So no catch if, like you say, you aren’t fussed on areas.

I live in Sutton which is in zone 5 and studios/one beds can be had from around 200k-ish. 350k gets you a huge 2-bed. Leafy roads and lots of amenities + very good train links. The ‘catch’ is that it’s very much a family area so not the coolest spot for a young singleton.

So yes, with your salary and being a saver and not a spender, London is definitely affordable.

Don't forget to factor in commuting costs plus you'll need money for the purchase costs (you can't add these to your mortgage).

If you don’t mind living a little further out or ex-council housing you have lots of options. I don’t think you need to rent in the area first but make sure you do lots of research.

You're first place is just down the road from me and I know the exact building. The reason why? Because I've sat in long traffic jams outside it. It's on a busy road at a busy intersection. And Grove Park doesn't have much going for it and is on the edge of Downham, which is a sithole.

But saying that, if you extended your search range to 0.5-1 mile north or east of Grove Park you should find something, look toward Lee or even Hither Green, which are decent areas. Might be a bit dull for someone in their 20s but there are pubs and cafes, and it's a 15 min train ride into London.

You're on the right path, just need a little more investigation into the properties

West Ham is actually pretty good! Forest gate is great. Look at www.rightmove.co.uk/property-for-sale/property-82567285.html (terrible photos but nice building); www.rightmove.co.uk/property-for-sale/property-66928137.html

Leyton also nice. May not be Mumsnet ‘naive’ but great stuff to do, wine bars, top ups etc. Look at the Wanstead tap for forest gate or Francis road in Leyton. Very different from living in Stratford- this is where people in east London buy their first flat or move out from Hackney for a house when they have a baby (like me!)

West Ham is handy, near Stratford which is great, obvs a lot of snooties on here :-) Its not exactly Chelsea but it's also not hideous/dangerous like some places which would be an absolute no

‘Naice’ not ‘naive’. And congratulations on your job!

I have a DS who’s looking to buy in London, so this thread is very interesting.

Can anyone tell me about Blackheath?

Sorry if that’s a hijack, by the way.

@LunaNorth

Blackheath is beautiful with upmarket shops and restaurants and very good transport links. Rubbish for state secondaries but if your son is a FTB then it won’t matter. However, when we looked round on a hunt for an investment property, I’d say that similarly to some other areas in zones 2-3, the naice roads and the local estates are all mixed together and very close by.

You may also get ex council flats in better areas.

Can anyone tell me about Blackheath?

It's lovely and prices reflect that

Start renting somewhere first, depending on where you need to commute to (I suspect near city/shoreditch area given it s a tech job?). Look at Islington for an established area yet full of young professionals, else you can look further east (Hackney) which is a bit more edgy with a young creative crowd who mostly flat share. Price for a one bed is circa 2k a month, flat share 0.8-1k. Buying wise, 400-500k for 50sqm flat (one bed)

Thank you.

I’m trying to persuade him to go for safe and lovely - he’s more interested in cool and edgy