Moving up the property ladder London but how?

[hopinghop]

After being on the market for ages finally got an offer on our flat - great. But in reality, we just havent made enough equity to move to a bigger place especially by the time we costed the move and everything. I just feel like if we got on the property market circa 2016 it's all doom and gloom especially for those who cant just move out of London. We now have one DC so in theory could get a small two-bed house and hope that goes up in value and then move again for a bigger place later on.

Sorry, this is just a moan really. We were so happy to have bought our first place a few years ago but just feel like we've totally done the wrong thing and are completely clueless as to how to proceed. Plus I have totally mummy guilt. Not sure if we should borrow as much as possible and get the biggest house we can find, or finding something more affordable and hope to move later. How on earth is everyone else doing it?

I agree that expecting to make enough money to ‘move -up’ in 4 years is unrealistic unless you’ve saved shed loads in that time or come into money in some other way.

People ‘moving up’ usually stayed put for longer beforehand to get the rise in value (clearly sometimes it happens faster but that’s not the norm) and it is extremely common for people to head out to get space, even if they have gained lots of equity. Families usually accept that in order to have the space and garden and schools they will ornably need to have someone commuting.

So I expect you can get a house and even a house of the size you’d like if you look a bit further out....that can be within zone 5/6 type London or the areas on the overground train that can get into town in around half an hour to 45 mins.

How much have you saved towards your upgrade in the intervening 4 years? That also will probably give you a clue as to why you are finding the next step hard. The other factor will be the size of your deposit when you bought your current property...if it was almost all mortgage, then you won’t see much growth in equity.

It’s always compromise when moving. You can’t have location and size. You have to choose which is most important to you.

@hopinghop

thank you, everyone. will have a think about everyone's suggestions and might check out Plumstead. Now trying to figure out a rental before firming up our next steps.

I can recommend Plumstead Common, but you'll need to make your move soon as prices are rising. The area has good schools, good parks and green spaces. Woodlands Farm is nearby and due to host Sitopia food growing co-operative currently crowdfunding. Some excellent café's and a craft beer shop. Certainly the hope is that more quality, independent businesses will move in. There is a parade of shops at the Slade and several units on Plumstead Common Road that have potential for improvement.

Some good advice from others, which I would echo - find a place you can add value and be prepared to stay long enough to contribute to the community and help realise its potential, this in turn should help with property gains. I would say don't waste money on rent if you can stretch a bit to get a house now. Best of luck!

The market was very high in 2015 so presumably you bought high in 2016 and it’s been such a short amount of time. To move in London you need normally to wait for market increases over a longer period of time, plus move to a cheaper area plus increase mortgage. That’s how you normally trade up in London. An amalgamation of all 3. That’s how people do it from 1 or 2 bed flat, then 2 bed small house, then 3 bed semi etc. Or you miss out a stage and just move further out.