Can we afford it?

[SleepyHollowed84]

Lived in London for 9 years before moving to another UK city 3 years ago year with the hopes of settling down somewhere, getting on the property ladder etc. Neither of us are settled and we both want to move back to London and buy.

I don't know if AIBU to think we can afford it or am I living in cloud cuckoo land?

We earn combined salary of approx. 100k. We'd be able to put down a £35,000 deposit so looking at 350k properties in SE London. In theory they do exist on Rightmove but is this a stupid idea?

Is London a nightmare to navigate from a buyer's perspective?

Has anyone like us managed to buy?

We don't currently have children so we'd also be looking to start TTC in the next two years. Is this a silly idea in a 2-bed flat in London?

I won't share where we currently live but it's a fairly large northern city.

Any advice very welcome!

Why is your deposit so low? Should be able to save that amount in a year on that income and without kids.

You’ll be able to do it no problem. I bought a flat in London on half that wage about 10 years ago in SE and it was tight but fine. It’s not as special as people like to imagine.

I would increase your deposit so you’ve got 25% to play with. If you’re thinking about TTC I would suggest looking for a longer term property-not 2 bed flat territory. Even by SE London standards that is a small amount to be looking at spending….

If your income is what you say it is then you should be able to get something nearer the 450k mark and maybe even to 500k if you stretch. But, I would increase that deposit-unless you have some crazy outgoings then you should be able to save a really solid amount in 12 months on your wages

We have been saving a lot. Our salaries have both risen quite a lot in the past 3 years and renting in London for 9 years took its toll financially.

I don’t think it’s an extraordinarily low deposit given the circumstances but fair enough!

Thank you. Yes we are both planning to save an extra 10k in the next 12 months so we should be in a position to look around the 450 mark.

Thats good to hear!

I know - I feel like I’ve got rose tinted glasses on and I really have tried to settle where we have moved, but I feel like our whole life is in London. I miss it a lot.

What about a short hop in but not actual London? London is so large that it takes me an hour to visit friends on the other side and it would be quicker to go to Oxford or St Alban's than Peckham from here by public transport...(Peckham being a lot more expensive than either) but start by thinking where your friends mostly live and then do a public transport mind map from there!!!

Leasehold flats seem the only choice in actual London for 350k. And I would worry that prices might stall over next few years...everyone wants houses so the ladder doesn't work with flats so well now.

Whereas somewhere you can actually live long-term is worth buying.

Thank you that is helpful!

SE London bordering Kent is your best bet at that budget. Still only 20-25 minutes into London Bridge on the train but you’re probably looking at zone 5 for a small house. There are properties around the £400K mark. Some pleasant enough areas like Sidcup, Bromley, Bexley. They have good schools, high streets etc and it’s easy and quick to get to the trendier places.

https://www.rightmove.co.uk/properties/158365925

They earn £100k combined, not each!

I’d move back to London. I’m not sure where or what you can buy with £350k. Will your salaries increase when you move? If so, it might be worth renting until you can show your salary increases.

The housing market is insane where I am unfortunately (Zone 2, SE).

I wouldn’t be put off by a flat. Everyone has to start somewhere and houses are just out of reach for so many people. I’d rather live in a flat than in Kent! (Lived in a flat for 10 years including with a DD),

Just be careful with your budget. If you will be ttc within two years, that means you might have a baby within 3 years (I’m one of those who got pregnant on first attempt, it happens more often than people realise!)

So then - you need a rock solid plan to pay the mortgage when you are on mat leave. IMO it’s a nightmare to take on the relationship stress of a baby when you haven’t got the finances behind you to afford it.

So - let’s assume you can get some enhanced mat pay for 6 months but then you’re down to SMP for 3 months and you head back to work at end of 9 months… how do you afford nursery and mortgage after that? What happens if baby has additional needs and you cannot return to work as quick as you planned? What will your support network be like if you’re in London with a baby?

You both need to sit down and do your research make a spreadsheet to figure out what is affordable in terms or mortgage repayments.

I agree. My db lives in a European city where it’s perfectly normal for the average family to live in a flat, it can be done very easily!

If you would like more than 1 dc then I'd try and buy a 3 bed if you can (or a 2 bed with a high enough roof for a conversation). I'm in a home county and I know people in 2 bed houses/flats who can't upsize and are putting off a second dc. I'm in a nice area great london commute but flat prices here have been stagnant for 10+ years.

Also, somewhat contradictory given me saying 3 bed, factor in nursery costs and maternity leave. You'll be looking at least £13-15k for full time nursery (if your combined is £100k then you should be able to use tax free childcare).

I know lots of people have children in London. I was one, and had one. Then I had more in the Midlands and it was so much better. £350 000 would get you a great house and garden in a lovely area with good schools and nurseries in the North with less hassle less pollution, less crime. It might get you a 2 bed flat above a chicken shop in London. I’m guessing you havent developed a circle of friends in your Northern city. But your London friends may well be dispersed across the city, or even country, and at different life stages. If it’s culture and nightlife, they fall away after babies anyway, but are also available outside the Capital. Career opportunities? Maybe. The life you long for may not be achievable. Try figuring out what a London life would provide. Could you achieve that by staying where you are, developing community links and renewing ties with family and old friends? Maybe try searches around that price on Rightmove for both areas.