First time buyer

[Newuser991]

I have the stamp duty exemption anyway up to £300k and my budget isn't bigger than that.

Am I best to wait to buy until next year?

I guess in London I cant have anything more than a 1 bed flat for that money?

It’s hard to say what next year will look like. I’d probably consider if the difference I’d be saving in rent if I bought now would be considerable enough not to wait any longer?

I would buy now. As a first time buyer I can’t see things getting more favourable!

Is the stamp duty not up to £500,000? Also if you wanted help to buy - that ends in March!

Another thought is the number of mortgages available. There are now less products than a year ago and there may be less next year. Especially products for typical FTB deposits (15% or less).

Also having your first own place is great

I can only really afford a one bed flat and I'm just nervous about buying somewhere that I outgrow and then cannot get rid of.

The deposit isn't a problem. I have £65,000. The purchase price is though looking at salary multiple

@AgnesNaismith

I would buy now. As a first time buyer I can’t see things getting more favourable!

Is the stamp duty not up to £500,000? Also if you wanted help to buy - that ends in March!

The stamp duty is up to £500k

But first timers get stamp duty exemption up to £300k anyway and that's my budget.

I dont want help to buy.

Can you travel further for a small house? Flats are harder to shift and I would be wary of buying one now, especially if intended as an investment as well as a home. The price of flats in London is likely to come down (they're overpriced in my opinion).

It may well be that house prices drop next year. If you were to stay long enough to ride it out, it wouldn’t matter as much. However, if you could save enough to buy a 2 bed next year it might be worth waiting.

Have you tried a mortgage broker? There were mortgages with a 5x salary multiple available recently. Santander had one last year, not sure if they still have it.

You must have a very high salary to get 300k on your own? It depends on where you're looking to buy, and how long you'd like to stay, I think, but I would always buy sooner rather than later.

I bought a 3 bed house in South London last year for £310k and looking on Rightmove quickly, in my area the cheapest house on the market here is a 2 bed for £340k. Most are £350-closer to £400k, which I think is absurd for the area, but good for us when the time comes to sell I suppose!

As long as you don’t end up in negative equity for 10 years I think changing isn’t a problem once you outgrow it. But so depends on the flat, what I noticed over time that flat price depreciates soooo quickly, especially new builds.

I’m a FTB too. But won’t be buying now, maybe in a new year. Even with no stamp duty exemption it is simply not worth overpaying for a flat. But that’s just my opinion.

I know lots of people here strongly believe that the rent is a cost. I find that mortgage for same property I live in now is much more expensive and additionally I have to give a big chunk of my savings for the deposit, which I’d rather hold onto for time being. Property feels a bit risky for me right now. Still looking now and then and researching properties in case something sensible comes up worth looking at. But all in all stamp duty holiday definitely inflated prices unrealistically in past 6 months. Rent prices are dropping though, because not everyone happens to be able to sell properties either and overflowing market with rentals.

But as I do invest my money on the open market it is a bit different story to me I guess.

@Sadhoot

You must have a very high salary to get 300k on your own? It depends on where you're looking to buy, and how long you'd like to stay, I think, but I would always buy sooner rather than later.

I bought a 3 bed house in South London last year for £310k and looking on Rightmove quickly, in my area the cheapest house on the market here is a 2 bed for £340k. Most are £350-closer to £400k, which I think is absurd for the area, but good for us when the time comes to sell I suppose!

Define very high salary?

That £300k includes my deposit

Sorry sadhoot what area of south London?

Maybe you've got a huge deposit then! it's alright, I'll unpoke my nose from your business.

I bought in the north bit of Carshalton. There are good links to lots of places, so even though the house is not attractive by any stretch of the imagination, I'm happy to have a house with a garden, and I can be in Wimbledon in 10-20 minutes and Central London in about 30 minutes.

We've gutted it and have been doing it up to our tastes, which is a nice feeling.

I've already said about the deposit upthread

Your home sounds wonderful Sadhoot

Ah sorry, I skim read that.

So where are you thinking of buying, if you don't mind me asking? I love looking on Rightmove etc for any reason!

SW London but my budget buys nothing

Yes, I used to live in Teddington, it's beautiful and has lovely parks, the lock, and of course is close to Kingston shopping. I think at the time I could have bought a one bedroom flat with my budget, and I seriously considered it!

Come join me in Carshalton, we can be the pioneers the place will be cool in no time.

I’d buy before interest rates go up

@Sadhoot

Yes, I used to live in Teddington, it's beautiful and has lovely parks, the lock, and of course is close to Kingston shopping. I think at the time I could have bought a one bedroom flat with my budget, and I seriously considered it!

Come join me in Carshalton, we can be the pioneers the place will be cool in no time.

What's Carshalton like in terms of town centre etc?

It's ok, nothing special, but has everything you need imo.

I usually go to Sutton or Wimbledon for shopping though. Or to Kingston if I'm feeling boujie and have money to burn.

We're planning on waiting until next year to start looking, we're hoping prices dip once the stamp duty holiday ends. The kind of properties we want are currently 20-30k over our budget, so we're hoping it might just bring them within reach. Especially as prices went up just after the first lockdown ended.

Yes we’re FTB as well and seeing how overpriced a couple of houses friends have bought locally are recently we’ll be waiting until next year to see what happens. Our budget is around £400k so stamp duty only £5k anyway.

Also DP is self employed and not allowed to work during lockdown so I doubt we’d be able to get a mortgage at the moment anyway

I hunk you can have more than a 1 bedroom flat for that money in quite a few areas of London. You just need to research areas carefully.

Consider where you might have to travel to for work after Covid and decide the journey you would like and also the journey you can come with and then start looking Ali g the appropariate transport routes. You’ll see a range of prices and need to get to grips with whether you value location more and will sacrifice space or vice versa.

You doN t need help to buy. Avoid it if you can. Prices are likely to fall further so you probably have time to research and find the right location and not rush in. I think you could get 2 beds in some areas. Look perhaps at maisonettes which often have a private garden, along with a private entrance....these can feel like houses and might be better if you don’t want to feel you grow out if somewhere, plus we know people really value gardens which helps them sell now and in future.

Who cares what your salary or deposit is? You said your budget is £300k so I do not understand why people care how.
You just need to look at different areas, but I'd rent before you buy to make sure you like it.

I bought a 3 bed house in South London last year for £310k and looking on Rightmove quickly, in my area the cheapest house on the market here is a 2 bed for £340k. Most are £350-closer to £400k, which I think is absurd for the area, but good for us when the time comes to sell I suppose!

Is Carshalton considered South London? You couldn't get a 3 bed home for £350k in South London as far as I'm aware. In my part of Forest Hill you could just about get a decent 1 bed flat.

@Newuser991, trying to find a 1 bed flat for £300k in SW may be pushing it. But I guess it depends on where in SW. It may be doable in zones 5/6 which I imagine push you so far out it's no longer SW London.