Married, two kids, mid thirties, husband is not a first time buyer but I would be.
How? It seems absolutely impossible, and house prices are through the roof.
Anyone successfully done it? How did you work?
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How do buy a house in London. Just, how?
Shinebright21 · 02/08/2022 21:27
Sunshineona · 03/08/2022 16:58
One of these:
- have a high paying job like banking, law, management consulting, or
- have rich parents who give you a load of money, or
- inherit, or
- have a time machine
Sucks. I’m from London. Left cos priced out. People live in the commuter belt for a reason. Come to East Kent!
MortifiedMelon · 03/08/2022 00:06
We bought a house in the Morden/Sutton area. It's 50/50 social housing and private ownership. The cars are either brand new or old bangers. Houses are either falling apart or being done up to the nines.
It was a shock to move here after renting in Teddington for ages but it was important for us to buy a house.
We are now used to it and go out to eat/walk in Wimbledon and I commute in to London on the tube. We've renovated the house over the past few years and it now feels like home.
There are still houses here for £350-500k which is just about affordable for London.
PM if you want the exact location and a tour/coffee
Housebuyingfamily · 07/08/2022 13:31
Exactly correct, they operate as community credit unions. Same with certain Asian communities too.
LivesinLondon2000 · 07/08/2022 10:59
@onthefencesitter
I only know this because a relative of mine also invests heavily in property in East London and interacts regularly with them.
There are (or at least pre Covid there were) regular large auctions of up to 200 or so properties that for various reasons were difficult to sell - things like ex-local authority flats with sitting tenants, short leases that needed to be renegotiated etc.
They were often cash sales as the various issues meant you may not be able to get a mortgage on the properties so there were great bargains to hand if you had the cash available and were able to deal with any issues. The ultra orthodox Jewish community were a regular presence at these auctions both buying and selling. I would think if you are a young couple in that community, there would be lots of help potentially available to get your own property.
LivesinLondon2000 · 07/08/2022 10:59
@onthefencesitter
I only know this because a relative of mine also invests heavily in property in East London and interacts regularly with them.
There are (or at least pre Covid there were) regular large auctions of up to 200 or so properties that for various reasons were difficult to sell - things like ex-local authority flats with sitting tenants, short leases that needed to be renegotiated etc.
They were often cash sales as the various issues meant you may not be able to get a mortgage on the properties so there were great bargains to hand if you had the cash available and were able to deal with any issues. The ultra orthodox Jewish community were a regular presence at these auctions both buying and selling. I would think if you are a young couple in that community, there would be lots of help potentially available to get your own property.
LivesinLondon2000 · 07/08/2022 10:25
@onthefencesitter
The ultra orthodox Jewish community in London rely heavily on property ownership in London for their income. In particular they own lots of ex-local authority housing which they bought cheaply when it was first sold and is now worth a lot more. Profit from sales and the rent they make from the properties they keep hold of is often their main source of income.
They’ve been doing this for quite a few years and I would be very surprised if younger members of the community weren’t given financial assistance - if not from parents then from other members of what seems to be a very close-knit community - to get started.
I know many other people (not from this community and usually aged 50+) who’ve done exactly the same - bought 2 or more properties in London years ago when they were cheaper and they now rent them out and live quite comfortably on the income so don’t need to work.
In my area of zone 3 London a small 3 bed house costs £1 million +. It doesn’t take much to work out that you need to be earning a good 6 figure salary to be able to buy one of those houses on your own. So anyone else has to have had some of the money already and, unless they’ve won the lottery, it usually has come from their family.
LivesinLondon2000 · 07/08/2022 10:25
@onthefencesitter
The ultra orthodox Jewish community in London rely heavily on property ownership in London for their income. In particular they own lots of ex-local authority housing which they bought cheaply when it was first sold and is now worth a lot more. Profit from sales and the rent they make from the properties they keep hold of is often their main source of income.
They’ve been doing this for quite a few years and I would be very surprised if younger members of the community weren’t given financial assistance - if not from parents then from other members of what seems to be a very close-knit community - to get started.
I know many other people (not from this community and usually aged 50+) who’ve done exactly the same - bought 2 or more properties in London years ago when they were cheaper and they now rent them out and live quite comfortably on the income so don’t need to work.
In my area of zone 3 London a small 3 bed house costs £1 million +. It doesn’t take much to work out that you need to be earning a good 6 figure salary to be able to buy one of those houses on your own. So anyone else has to have had some of the money already and, unless they’ve won the lottery, it usually has come from their family.
Diamond7272 · 07/08/2022 01:46
So your partner just passed probation in a job and you are 27 and didnt work for ages... And the banks gave you a mortgage of 392k minus your 70k deposit, so £320,000ish.
Morthages then were maybe 4.5 times combined salaries and often required 2 years work history in the role, so in the circumstances you described you were earning about £70,000pa between you?
This is just rubbish.
I am really tired of the "well we did it" (all on our own) argument as it isnt true, and totally devalues those peoples efforts who truly scrimped and saved for decades... It undermines what they went through.
I have so much mire respect fir people who tell the truth...
"we had massive parental help" is the opening line for 99% of people buying in London...
(This is the focus of this thread.)
Diamond7272 · 07/08/2022 02:10
Jewish men don't get GCSE's??? (your quote)
Are you feeling ok onthefencesitter??
Have you been spending too much time in Bavaria?
I'll stick with my statement... "to buy in London now, almost all young and middle aged people need significant family help"...
And a large proportion of those who receive such help pretend they haven't... Or fail to see it.
Diamond7272 · 07/08/2022 01:46
So your partner just passed probation in a job and you are 27 and didnt work for ages... And the banks gave you a mortgage of 392k minus your 70k deposit, so £320,000ish.
Morthages then were maybe 4.5 times combined salaries and often required 2 years work history in the role, so in the circumstances you described you were earning about £70,000pa between you?
This is just rubbish.
I am really tired of the "well we did it" (all on our own) argument as it isnt true, and totally devalues those peoples efforts who truly scrimped and saved for decades... It undermines what they went through.
I have so much mire respect fir people who tell the truth...
"we had massive parental help" is the opening line for 99% of people buying in London...
(This is the focus of this thread.)
Diamond7272 · 07/08/2022 01:39
Nah, this sounds like garbage.
You bought new IKEA furniture for a box room or a sisters ex bedroom?
The numbers just don't work.
I'll say 'i believe you' if it makes you happy.
'I BELIEVE YOU'... There you go. WELL DONE. JOLLY GOOD SHOW OLD BEAN.
There, done.
Diamond7272 · 07/08/2022 01:28
Just doing a bit more maths (it's a quiet evening) onthefencesitter, between you and your partner - taking into account the value in kind of living with 1 set of inlaws fir 3 years - you saved 70,000 over the term, but really just 23,500 if your folks had made you face real life conditions...
So that's 11,750 each partner contributed in saving over 3 years, so about £3900 per person per year was your true rate of saving - or rather the saving that any other person could achieve who didn't get to live in your circumstances.
So, basically, you both did OK, nothing to write home about (if you excuse the pun), and you wouldn't have had a hope in hell at that rate of buying anything at 27 and 29yrs without the generosity of someones parents...
Some might say it's rude to break this all down, but i think it's rude to state "we did it" without ( hundreds of thousands) of family help, when in fact two thirds of your savings came from the good grace of family and your true rate was a shade under £4000 each saved per year...
Ouch.
Diamond7272 · 07/08/2022 01:09
Lol onthefencesitter
2 of you lived in London rent free for 3yrs with 1 of your sets of parents and you don't think that was a massive leg up financially?
A 1 bed flat in London averages 1250pcm, so that's 36 x £1250, about £40,000.
You presumably didnt have to pay full council tax for 2 people on that flat for 3 yrs, so thats easily another £5000.
You missed out on estate agent fees, inventories etc, another £1500.
Crikey, by 'just' living with family 3 years - presumably in a spare bedroom, not under the stairs of a 2up-2 down, you saved a minimum of £46,500 in 3 yrs, so really - any normal person without such accommodating parents/in laws - would, at your rate, have just saved £23,500.
Thats just 6% of what you paid for your 392k flat, ie: NOWHERE NEAR THE GOING RATE FOR A DEPOSIT, and was really just 4 or 5% when you take into account surveys, solicitor fees, stamp duty etc.
thus, like i've said before, it was only possible because your parents massively helped you out.
Again, shame kicks in... You didnt really 'do it' on average salaries with a lot of sacrifice, but you like to think you did.
FurierTransform · 06/08/2022 08:17
Any young couples currently buying on London either have massive family help to the tune of £hundreds of thousands, or both work in the high paying industries with household Income £200k+
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Diamond7272 · 06/08/2022 20:29
I worked in a very, very posh, elite private school in a senior role. Every now we would have reunions and fundraisers with past alumni parents...
They all wouls swear blind that 22yr old Annabel or Chi Chi (yep, she exists) had graduated from Oxford (reality, Oxford Brooks) with a 2.1 (reality 2.2) in business and economics (reality theatre studies and fashion) and had won a place at Goldman Sachs on their graduate trainee programme (reality, mummy had asked her interior designer friend to ask her husband Giles to give the 'poor' girl an internship), and now their darling daughter was buying a flat in Wimbledon and enjoying her weekends in Boujis...
You think I'm kidding.
Nope, in the private school world such utter bs and self promotion/promotion of ones children is just another part of the social ladder...
9.99/10 mummy and daddy bought the children properties outright, then aged 25 Chi Chi would marry Hugo, ex Eton, daddy set up Wonga-type, and they would be buying in Battersea a nice townhouse.
That's how people do it.
Not all my colleagues (although, private schools remain a club, posh teachers as well... State school educated teachers dont know anything about Common Entrance or 13+ Marlborough Scholarship exams), but the reality is that everyone lies that they had 'no help' and did it all on their own, but the reality today is that they all had/needed help in some shape or form, at least 100k upfront, often triple or more.
Posh parents dont like others knowing this as it makes their offspring look less successful, indeed spoilt and indulged...
Shame is a powerful thing. Brings out the bs in housing conversations.
Fupoffyagrasshole · 02/08/2022 21:37
Yeah I couldn’t do it now I have my child. ! We bought while I was pregnant ! Didn’t dare even try for a baby until we had the deposit saved tbh
sorry not helpful
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