Best way to get on housing ladder

[MmeSosostris]

Or rather, best way to get a home🙂 I am trying to work out what is best for my budget (very modest) in London.

A) get studio within budget in ok area and pay off as much as possible, aim to move in 2 years to flat and just keep repeating this until have something substantial I can stay in for ever.

B) buy a place in zone 4/5 that needs some work doing and look to add value by doing the difficult stuff and then sell hopefully at a profit. Again, rinse and repeat

C) go for better paid job than currently on (possible) and buy as much as I can afford in decent area and stay there

D) as c) but in cheaper area and hope to make profit to move to next area with better deposit.

Any ideas?

I think anywhere you could be comfortable within 40 mins traveling time. Personally I would go for somewhere with a sense of community. But it would have to have really good transport links into city. Fix your mortgage for 5 years too. I think mortgages are on the up.

@LemonSwan. That’s a good way to look at it.

Probably a good idea to stay in a place accessible to St Thomas’ as that’s where my consultant is. Near a swimming pool and a tube/Trainline. That’s about it !

@caringcarer

Yes, I agree

We did a combination of b and c.
So ok house that needs a few things done to it but in the right area next to a good school with the idea that it will be a forever home. Over time with savings we will turn it into our dream home (hopefully)

Does your employer have offices in other parts of the UK? Can you get a relocation package?
Can your disability be managed by a different consultant in a different hospital?
How far are you prepared to commute? (I'm between Bristol and Bath. The morning trains are usually full of people who are commuting to London).

@MrsMoastyToasty

That’s an idea. I really like Oxford (very pricey) and thought about Banbury, etc. Reading, Bristol all good areas to investigate

40k is much better than 25
You could save a bunch in 3 years if you able to live off 25 now

@Embracelife

See, this has been my problem so far. I’ve scrimped to save, lived in cheap but not ideal shared places and each time the amount needed for a deposit has gone upon the places I looked for. I’m now paying higher rent and bills so the longer I stay here, the more I am losing. I thought I’d try a different tactic this time - go further out ( zone 4/5?) and buy something that needed some work so that I could add value. Not sure if that is realistic nowadays but there are parts of East End (Barking, Plaistow that are still cheaper). I don’t really know those areas.

Don’t buy at auction unless you are an experienced developer and have good legal advice. Many amateurs lose their deposit as they can’t complete on time.

In your situation I’d get a better paid job, get a 3 bed further out and get two lodgers to help pay the bigger mortgage.

Your place needs to be reasonable / good condition to get decent lodgers at a good rent.

Thank you @Iona - that makes a lot of sense.

The other route is shared ownership and the lodger option. But I have a feeling so is not so cut and dry and I think you could lose money.

@MmeSosostris I don't know about Banbury or Reading but Bristol and Bath are some of the most expensive areas outside London for property.

And Oxford, I think. I just did a right move search for Dartford and there’s nothing

Where do you want to live?
It s not always going to be sbout making money
It s not guaranteed
If you paying off equity hopefully you have ££££ in a decade
But it s about you having a home isn't it?

@Embracelife

Yes, that should be it. I think I am putting pressure on myself to catch up with everyone else. I’m panicking about the future and finances as this disability threw me completely sideways.

But you may be right that I thinking the wrong way round and should look at quality of life now.

Oxford I think would be ideal. Have some contacts there. Easy to get into London, small, compact city. Perhaps a flat in the suburbs.

What about shared ownership? It would give you more security than renting and probably enable you to buy closer to the areas you prefer.
It's not perfect (leasehold usually, service charges can be high especially in buildings with lifts) but if location is important it might be an option.

I do sympathise. I'm from Walthamstow, completely priced out, but managed to get a toe hold with a one bed in Romford about 7 years ago. We only had a £9k deposit so high interest for a couple of years, but Crossrail whacked the prices up 50% not long after, & DH did a bunch of work related exams which boosted our income. We're pretty settled so bought a 3 bed house here instead of trading for a flat further in to London.

Moving costs lots. If realistically you can get a better paid job in the next 12 months do that then buy where you actually can see yourself living for at least 5 years, both location and size - a 2 bed minimum is much more future proofed, not only if you have a child but allows you to have a lodger to help with the mortgage, best advice I was ever given!

Selling and moving up the ladder rinse and repeat style is hard in London unless you expect you are going to increase your salary significantly over time or pair up with others eg partner or friend. Even if you pay off mortgage quite quickly which gives you deposit the rise in prices in that time won’t help your situation. Unless there’s some kind of major property slump. Just get on the ladder but ensure you do it in a way you feel comfortable living there for now in case you get stuck in your starter properly….many have!!

Thanks @AwkwardPaws27 @gogohm

Children are not an option now sadly so a lodger is a good option. I will keep looking further afield. I like East London and there are some lower price properties in the ‘stow🤣 Too trendy for me, though🤣🤣🤣🤣🙂

@Babymamamama

Yes, it’s a real factor to take into account. I’m also not sure how realistic it is for one woman working full time to keep moving.

What about Co-ownership rather than shared ownership.

Where you find a like minded person and buy with them. It can be done but you need to spend time finding the right person and getting the legal bits sorted out properly.

It might give you other options.

That may not be the correct term BTW (Co-ownership)

I think it can be done.

A long time ago now one of our neighbours sold his tiny one bedroom flat and bought with 4 of his friends. They moved into a very large house with land and outbuildings!

Crucial to get the legal stuff absolutely perfect though.

Oxford is expensive too and if you are spending money on commuting to London and the time to do this how would a £25k job allow this? You haven't answered how much deposit you have but your borrowing capacity isn't great as a single person on either of those salaries if you do not have a big deposit.