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London: Where To Buy For £500K?

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

Worcester Park.

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

Mate, if you're thinking long term then kid and London don't mix well. Also, if you're in city then at some point you might think of getting out and that would also mean getting out of London.

Sorry this isn't really advice, but just been there and got the T Shirt and seen it lots of times.

A mortgage in London with a city job is a shitlot of stress.

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Mate, if you're thinking long term then kid and London don't mix well. Also, if you're in city then at some point you might think of getting out and that would also mean getting out of London.

Sorry this isn't really advice, but just been there and got the T Shirt and seen it lots of times.

A mortgage in London with a city job is a shitlot of stress.

I like London and want to stay long term.

What are you saying, you think its better to rent?

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

Similar situation but now work in Canary Wharf. I assume you have a deposit of about 100 to 125k and your salary allows you to borrow about 400k? In a fairly similar situation and I assumed that surely that would place me in a good position but in reality, not so much. There's a ridiculous amount of competition in that price bracket and once you add the overseas investors...and now with Help to Buy...

After living in Whitechapel and Shadwell for my whole career from a time when no white middle-class wanted to step foot in the place except temporarily while they waited to move on, to the point where every young rich City worker or student wants to live there, I'm now priced out and for 400-500k, there's little that seems worthwhile.

I've gone for Limehouse for proximity to Canary Wharf, proximity to where I currently live and the general area: pretty peaceful.

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

Why do you want to buy rather than rent?

Are you hoping to make money from the price going up?

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Why do you want to buy rather than rent?

Are you hoping to make money from the price going up?

Been renting for years and would like to have my own place.

No, I am not hoping to make money from the price going up. If prices stayed flat I would be happy enough.

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Similar situation but now work in Canary Wharf. I assume you have a deposit of about 100 to 125k and your salary allows you to borrow about 400k? In a fairly similar situation and I assumed that surely that would place me in a good position but in reality, not so much. There's a ridiculous amount of competition in that price bracket and once you add the overseas investors...and now with Help to Buy...

After living in Whitechapel and Shadwell for my whole career from a time when no white middle-class wanted to step foot in the place except temporarily while they waited to move on, to the point where every young rich City worker or student wants to live there, I'm now priced out and for 400-500k, there's little that seems worthwhile.

I've gone for Limehouse for proximity to Canary Wharf, proximity to where I currently live and the general area: pretty peaceful.

I don't even have that much and was looking at HTB. I have about £50k in the bank.

£25k deposit with the HTB will get me a £500k mortgage. £30k deposit will get £600k.

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So it sounds like you have a very good salary that allows you to borrow a fair bit of money, probably more than someone like myself.

However there seems to be a lot of demand in that price bracket, not because there are so many people with the same pay but there's a surprisingly large number of first time buyers in London with help from rich parents. I have received a bit of help from parents but it represents a very small part of my deposit. In addition to this phenomenon, most people are buying with a friend or partner which increases affordability. Despite being able to obtain the mortgage by myself, I eventually decided to buy with my partner because I didn't want half of my salary going to mortgage payments and service charges and other flat-ownership-related expenses.

Until recently only young well-paid buyers with rich parents would consider buying. With HTB other buyers may consider it as well but not that many first time buyers have six figure salaries even in London.

It sounds like you are in a good position to buy but I would be wary of taking a 95% mortgage on a 500k flat but you know your financial situation better than anyone else.

As people are likely to point out on this forum, prices will eventually stabilise. Even with HTB there are only so many young people with 60k+ salaries in London so even with such schemes, such young people, even in a couple are unlikely to ever be able to go for anything above 500k. Salaries aren't increasing and as overseas investors' interest cools off as it seems to be, there is nothing to fill the gap. Rents have increased to breaking point (I.e. you'd be a pretty dumb investor to think you can squeeze a 400 pw rent out of someone who earns 50k). I personally expect a flurry of activity next year and maybe the following until interest rates increase and people suddenly realise that there's no one to either buy or rent their properties at the prices they expect. With low interest rates and HTB, I don't think we're quite there and there's plenty of young couples in London who can service a 300k-400k mortgage.

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I'm starting to research places where I could buy my first home in 2014.

I can get a mortgage of up to £500k (including deposit).

I work in the City.

Early thirties and single.

Could anyone suggest where they think would be some good places to buy that could accommodate children etc in the long term?

Your best bet is East Haringey (North London) or even Waltham Forest (NE). They are Victorian/Edwardian suburbs in need of regeneration, so there's plenty of good sized 3-4 bed housing stock, many in need of substantial refurbishment. Think undervalued (relative to market), underdeveloped growth asset that you're buying with leverage.

Transport:

The commute to the city is decent thanks the Picadilly, Victoria and Central lines, along with some overland trains.

Turnpike Lane (Picadilly line) and Seven Sisters (Victoria) have the best commute into the city. The Picadilly line should improve in speed, frequency & capacity as the line

hasn't been upgraded yet. Both are stops on the proposed Crossrail 2 project.

Prices:

Price rises by 2020 are forecast at over 80% by Oxford Economics on behalf of the National Housing Federation among the fastest of all the boroughs in London.

Three/four bed houses are in the £400-600K range.

Area:

These areas used to be rough, poor and crime ridden (count # of houses with bars on windows & front doors), but they're cleaning up and even slowly gentrifying. Tottenham is in East Haringey, it just secured a £1bn to execute a regeneration project called "a plan for Tottenham", along with various other minor regeneration schemes. Some are calling South Tottenham 'North Stoke-Newington', but with better transport.

Schools are improving, most are ranked Good or Outstanding by Ofsted.

I've lived in both. Out of the two, Turnpike line is the nicer one of the two, dramatically so. Mostly a Cypriot /Turkish/Kurdish immigrant enclave that's slowly turning into an overspill area from neighbouring yummy-mummy land: Alexandra Palace and Crouch End and it has a good, active community (see http://www.harringayonline.com/).

Specifically:

The Turnpike Lane area splits into four postcodes:

- N8 ('the Harringey Ladder'): mostly out of your price range if you want a three bed house (£600K+ for a fixer-upper) with a garden.

- N15 ('West Green'): probably your best bet, particularly the middle parts Langham Road & Carlingford Road.

- N17 ("West Green'): the roads surrounding the award winning Downhills Park. (Crossfield rd & Belmont ave),

- N22 ('Wood Green'): Massive shopping high street. Mostly shit, poor and crime/asshole ridden, but convenient for all the high street brands (Banks, Phones, Supermarkets).

Seven sisters is more of a long shot. It's grim.A lot of the shops are genuinely vile, like the stinky unhygienic butchers, fishmongers & grocers along the eastern part of West Green Road. Tesco Sainsburys & Nero are highlights that have sprung up in the last few years.

Tottenham high street has a lot of conservation areas with quite lovely grand Victorian buildings, so it's got more potential, but it still has to claw it's way out of the pit of destitution & despair. I only mention it because in a decade it's probably going to be quite decent and very unaffordable. Classic risk/reward tradeoff.

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I assume you want less than 45 minutes commute door to door, and ideally 20-30 minutes.

If you work in the City, then presumably you also want somewhere you could get to Canary Wharf from, if you switched employers, or your employers relocated.

And if you work in the City, you won't have time for major renovation.

And you'll live in a mixed area, with a few people like you.

Children mean you'll need outside space (push chairs, buggies, prams, storage, etc.), so you'll want something semi-detached or detached, not an apartment. Secondary school is too far off, but you'll need nursery and primaries.

That means you need to be on local metro service to Cannon St or London Bridge. Or the Northern line or Central. or DLR.

Given the above you'll get small family houses on the eastern end of the Central line (zones 4-6), or the train lines from Cannon St (zones 2-3), Lewisham, Greenwich, Blackheath.

3 bed 60's house in 'good' area: http://www.rightmove.co.uk/property-for-sale/property-43883690.html, 20 mins on DLR to work

4 maisonette bed in a family conservation area: http://www.rightmove.co.uk/property-for-sale/property-44267141.html

3 bed in a quiet family area with good schools, near the station: http://www.rightmove.co.uk/property-for-sale/property-38833823.html

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Your best bet is East Haringey (North London) or even Waltham Forest (NE).

Prices:

Price rises by 2020 are forecast at over 80% by Oxford Economics on behalf of the National Housing Federation among the fastest of all the boroughs in London.

Three/four bed houses are in the £400-600K range.

Is that you turnbull?

Been renting for years and would like to have my own place.

No, I am not hoping to make money from the price going up. If prices stayed flat I would be happy enough.

And there's no shortage of people who would be calling you a victim 'who watched too much property-porn ect' for your decision to buy if prices fell.

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This whole thread is quite scary. Even a City worker with a 6-figure salary has to temper his aspirations to home ownership in London...

The problem is he is clearly nothing special in London.

Market turnover is a fraction of the total property stock and with foreign money and ten-to-a-room immigrants, plus £100k+ earners far from scarce, it spells high prices for any individual house that comes to market, even if most of the incumbent residents could not afford to buy what they already live in.

Edited by bambam

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I'm also going to consider just getting a two bed flat that is more central.

What is Hackney like as an area?

It seems to be quite trendy just lacking in tube links.

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I'm also going to consider just getting a two bed flat that is more central.

What is Hackney like as an area?

It seems to be quite trendy just lacking in tube links.

Hackney is the sort of area that will fall badly if there is a houseprice crash. Not sure about the trendy. It's an area that more people are being forced to move to as they cannot afford other areas, This means young professionals living next to areas of social deprivation that they would not normally see close at hand.

This means an increase in the services/shops that they use and a split population, which is becoming more common as areas of London become too expensive for their "normal" population to even rent in. The lack of public transport makes it a vulnerable area to but in, particularly in a housing bubble.

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Hackney is the sort of area that will fall badly if there is a houseprice crash. Not sure about the trendy. It's an area that more people are being forced to move to as they cannot afford other areas, This means young professionals living next to areas of social deprivation that they would not normally see close at hand.

This means an increase in the services/shops that they use and a split population, which is becoming more common as areas of London become too expensive for their "normal" population to even rent in. The lack of public transport makes it a vulnerable area to but in, particularly in a housing bubble.

I would agree for a lot of areas in Hackney but as mentioned in another thread, there is often confusion (sometimes encouraged by EAs and LAs) around the naming of parts of London between wards, boroughs, tube stations, the latter often dominating people's understanding of where they live. The reason for the confusion being encouraged by the EA is fairly obvious: sell an undesirable area of Hackney as if it was exactly equivalent to a sought-after area of Hackney.

Hackney is a very large borough and similarly to Camden (that tourists associate with Camden Town station mostly), it is incredibly diverse. "Hackney" causes the same confusion when one person is probably referring to Hackney Central and the other to the wider Hackney borough.

Hoxton, Shoreditch, Dalston, Broadway Market, all areas of Hackney are highly gentrified and are already overpriced. I would not consider these areas as areas where people are being "forced" to move. Maybe 5-10 years ago but they have significantly changed.

London Fields and Hackney Downs seemed to be areas that were getting overspill of young professionals and hipsters who could not afford the aforementioned areas.

I definitely agree that a lot of areas in Hackney seem susceptible to a price crash especially as the area is often given as an example of the explosion of prices in the capital: multi-million yuppie flats next to social housing and derelict buildings.

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The problem is he is clearly nothing special in London.

Market turnover is a fraction of the total property stock and with foreign money and ten-to-a-room immigrants, plus £100k+ earners far from scarce, it spells high prices for any individual house that comes to market, even if most of the incumbent residents could not afford to buy what they already live in.

Some would go to the extent of saying that 7-figure salaries are not "that special" which is true if you base your "reference" on a certain group of workers and hang out with partners in a Corporate Law firm all day.

Only 250 000-300 000 people work in the City/Canary Wharf and sure, the "average" salary is fairly high (about 80k-90k) to the point of making a 6-figure salary seem almost normal but the median salary which is significantly lower shows how unequally split the rewards are so the number of people like the OP are definitely a minority of a minority among London workers.

Sure, we can start to think that the "norm" of a London property owner is someone at least as wealthy as the OP but then we'd be acknowledging how narrow the group of people who can afford to buy in London really has become, which was my initial point.

I would dispute the statement that there are that many people like the OP but then again I don't have actual figures. The obvious things that the owner has going against them, despite the high salary, are:

- They are not an overseas investor

- They are not purchasing with a partner (the majority of FTBs in London have to buy with a friend/partner)

- They do not have a huge amount of savings available

Edited by samtheman

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