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?

@LunaNorth safe and lovely is a hard sell if he’s young and single! It’s unlikely he will want to live anyway actually unsafe, “edgy” is not quite the same thing.

@LunaNorth lovely but £££

@ScantiJHM there's no catch as such, but I suppose a two bed flat in a suburb close to the centre of Liverpool/Newcastle/Sheffield would be less than £350k. You're also on a good salary, if you were earning £30k then those flats are 10x your salary which is almost impossible to afford.

I'd echo forest gate as being an area to look at, a bit east of me but I love the cafes and shops plus the huge amount of green space.

Can anyone recommend cool and edgy places that aren’t going to keep his Northern small town mother awake all night?

Or should I start my own thread?

Don't move to Grove Park or surrounding! It's terrible, we bought there as first times buyers did up the property and moved as soon as we were done. It's got nothing there, train line is rubbish as few trains to central, not many late options and only one proper line. When the trains are down its very difficult to get home. It feels like the forgotten bit of London, no investment, no proper amenities and poor connections.

We moved further over to Beckenham way after. Lots of places to eat, Kelsey park is delightful, Penge and Bromley aren't far for the shops. Beckenham more expensive but still affordable depending on the place you want. It's in Bromley Borough and have lots of options for trains including the overground. Look at Anerley too.

@LunaNorth

Blackheath isn’t ‘edgy’ at all, it’s very gentrified (and seriously pretty). I made the comment re estates as that’s how some areas feel including the area where Prince George goes to school and most of his classmates presumably live.

There is no catch. People are very snobby about the area, what to have excellent schools or huge houses. I would suggest a min of 2 double beds so if needed you can get a lodger, I thought I could afford my mortgage but I also wanted to do things that cost money, a lodger was the solution.

@LunaNorth cool and edgy doesn't mean unsafe.

I had a flat right behind train tracks and it wasn't a problem. The first is share of freehold which is preferable to leasehold. I'd go for it!

West Ham is a Dump. That’s why it cheap for somewhere so well connected. I live in zone 6 and can be in central London in about an hour. You can also get a house here for 350k. Parts of London are reasonable and not too grim. West Ham is not one of them.

@ainsisoisje

I had a flat right behind train tracks and it wasn't a problem. The first is share of freehold which is preferable to leasehold. I'd go for it!

My first flat in London was next to two train lines. I lived there for almost ten years. It was also in Hackney, in the days when Hackney was most definitely not fashionable.

Admittedly I don’t have children, but I do roll my eyes at these “is x safe or y naice?” threads (OP, I appreciate that is not what you were asking but inevitably it becomes derailed). I have lived in London for 20 years now, moving progressively more eastwards each time. Where I live now is the kind of area that would get the pearl clutchers posting crime stats and saying to avoid. In truth it is a quiet, friendly, family area that is welcoming to newcomers and makes you feel part of the community, whether you’ve lived here 4 weeks or 40 years. Crime stats and deprivation indices do not give you a real picture of what somewhere is like to live - it’s just snobbery.

OP, you live in east London already, so you’re not coming to this cold. I recommend you get out and explore different areas and get a feel for places and what you most prioritise in a location. The idea that anywhere you can buy a flat (or house!) in London for under £350k is somewhere you’ll regret living, is a myth.

Hi OP

There's no catch - you are on a salary which is three times the national average so London is affordable to you.

You can still find decent properties in the range you are looking in. I'd also look in South London if I were you - maybe Forest Hill, Sydenham, Catford, Hither Green, all nice areas.

London starts getting tricky when you need to scale up to a family size home, right at the point where you also have to factor childcare costs into the mix. But saying that, we've got a 4 bed maisonette in zone 2 which is affordable to us (we converted it from a two bed by adding a loft conversion) so it can be done.

@LunaNorth, there's a huge new build development next to Blackheath and Greenwich (walkable to both) but technically in Deptford which is hipster territory! I think the development is called Deals Gateway - on DLR and close to the overground. The flats are new build poky but are coming on to the market at £300-£325K which is very good for that area. Perfect for young, single/couples working at the wharf or in the city.

@Ypsilanti has it. There are thousands of properties in the £300-£350K range but a lot of people turn their noses up at the areas. We live in an outer suburb now as needed a family home but it's still only a 14 min train ride to London Bridge but we have no tube nearby.

West Ham has a lot of housing estates and anti social behaviour but is very well connected and vibrant from a diversity perspective. If you've lived on a grim housing estate up North then it will feel a lot better as it's surrounded by places that are vibrant and easy to get to - Greenwich, Stratford etc. Also easy to get in to central London. For first time buyers, East and South East London are the relatively cheaper areas. I've never known a ftb to buy in zones 1-2 without substantial help (unless it was many years ago). Most young people to London flat share if they want to be central/N or W London.

There are even quite a few flats in the £250-£275 range in zones 4/5. Leafy, safe suburban areas which have regular trains into London every 10-15 minutes. I'm thinking Eltham, Sidcup etc. Dartford even!

Thank you @Lightsabre

@ScantiJHM

Not sure when you’re planning to buy, but your student loan will likely count against you for affordability. There may be some lenders where it doesn’t (a broker can advise). But for example, I had £8000 outstanding (paying it off at a similar rate to you), and it brought down my affordability by about £50k - this surprised me! I ended up paying it off with deposit money instead.

I lived in zone 6 Middlesex side and just checked out of interest and it's possible to get flats in that price range. I was very happy there, my commute was over an hour because I worked SE, wouldn't have been so long if my job was central but I was always happy with my commute, end of the line so always got a seat! Was only 40 mins to Oxford Circus so managed to enjoy London life although not as easily if we lived closer obviously but with the night tube it got a lot easier.

The first flat is in a bit very nice area at all. I know this as I used to work at one of the secondary schools right next to that flat. I honestly wouldn't have wanted to live there.

Plus people are leaving London in droves at the moment (I have heard anecdotally from estate agents). Why would you want to buy a small flat in a not nice area when for the same money you could get a nicer house in a much nicer location in a little commuter town? Especially when there's likely to be more of a working from home culture over the next few years. I'm obviously biased though because that's what I did 😊

Why would you want to buy a small flat in a not nice area when for the same money you could get a nicer house in a much nicer location in a little commuter town?

We stayed in London as you can still get a lovely, leafy area and a nice house with a huge garden walking distance to the coutryside but at the same time, DH gets to cycle into his central London office and we get to enjoy the cultural life of London and well as the coutryside

Hi OP, first up congrats on your new job - well done!

Second up, yes you can afford to buy in London. We bought in 2011 for £325K and our property is now worth >£500K, so as well as saving yourself the cost of rent, property also tends to be a good long-term investment.

My advice is to make your purchase work for you as best you can. Since you'll likely be working long hours, look at transport routes to your office and focus your search on areas that you can commute from in under 30 mins if possible. (Most office hubs in London have at least one or two routes in that include some affordable places).

Also since you're financially savvy and happy renting, do consider buying a fixer-upper - our flat was in very good condition when we bought it but we have friends who spent on renovations and sometimes literally added 30-40% to the value of their places in a few months - with not much more than damp-proofing, new flooring, new bathroom suite and a coat of paint everywhere! So that's also something to consider.

Wish you the best of luck!

The catch is location. The Baring Road flat is. It in a good location, it's dodgy at night, I have to change trains at Grove Park. I wouldn't live there.

Here are some examples of 2 bed flats in your budget in areas that I (40 year old woman; like a quiet life) would consider, but which do not fall into the MN definition of suitable parts of London in which to live.

www.rightmove.co.uk/property-for-sale/property-77457460.html

www.rightmove.co.uk/property-for-sale/property-82449484.html

www.rightmove.co.uk/property-for-sale/property-82459141.html

If you only want a one bed then you’d probably be able to buy in more fashionable areas like Walthamstow/Leyton/Leytonstone on your budget. You have plenty of choice. Get to know your roads - one street apart can make all the difference. Don’t listen to the naysayers. And trust your gut instinct.

Congrats on your new job. How exciting!

As pp has said both flats seem to be very close to rail tracks and the SE12 flat is a basement - nicely done out but basements are usually cheaper.

West Ham is a much better location imo but I wonder if this flat is ex-council? That would explain its price/good value. Lovely flat though and it wouldn't put me off if that's the case.

Islington is pricey, I always think of Blackheath as being more family- oriented than for singletons. While enting first may be a good idea don't leave it too long if you want to buy while the stamp duty exemption applies.

LunaNorth Stoke Newington, or the obvious is Shoreditch but probably too expensive now.

can I ask what you will be doing, OP? out of interest as I am looking at tech jobs