Is buying an expensive flat as a YUPPIE couple a good idea?

[dirtyrag]

DD and her long term boyfriend are looking at buying an enormously expensive flat. Her boyfriend’s parents have given them some help with the deposit.

DD is 27 and her boyfriend is 29. They’re looking at taking out a mortgage of £900,000. To buy a one/two bed flat somewhere central.

DD is the higher earner (she’s in finance) and her boyfriend earns very well too (he’s a lawyer).

I’m just concerned that there’s such a high burn out rate in those jobs. That why get stuck in paying for such a massive mortgage? Why not just rent?

In this market, it's not a good idea. I'm going to guess from your post that your dd is looking at buying in Central London. It's now significantly cheaper to rent than it is to buy if you live in Zone 1 and parts of Zone 2.

In real terms apartment prices are down a lot and have been stagnant since around 2016. So despite the countrywide paranoia for house price growth, this really hasn't happened in the most desirable part of the country.

It would make more sense for them to rent somewhere they like and invest aggressively in other forms of investment. I.e. stocks and shares or perhaps even property somewhere else. That way she can rent a nice apartment and have the dosh in the bank.

Ignore naysayers about renting - and rent something which is comfortable nice to live in. In an age where chasing house price increases through quickly scraping together a deposit and getting on the ladder are well gone, it makes far more sense to live in something nice now. All within reason of course.

I'm firmly of the camp that life is for enjoying - and at that kind of income level and age, her options and desires are far different to most posters on here, so frankly whilst their advice might ring true for people in their own situation, your dd has choices.

You can certainly find small houses around the1M mark in zone 1/2. Flats will likely be leasehold, which are a scam.

Nearly a million pound mortgage? It's a NO from me.

I'd always buy over renting. But if looking to spend about £1m on a one/two bed flat I bet the service charge is pretty hefty too. And are they thinking of starting a family in five years? The stamp duty on their next purchase with be £££. As it is stamp duty will be over £40k on this purchase.
I think they need to do some serious calculations.

What would happen if they split up?