#LondonHomeBuyer #FinancialAdvice #RealEstateLondon
Struggling to Buy a Home in London? Here’s What to Do
Consider Your Financial Situation
Given your salary in finance and the amount you have saved up, it’s clear that you are in a good position to purchase a property in London. However, the current housing market in the city can be quite challenging, especially for those looking for a 2-bed property within a specific budget. It’s important to carefully assess your financial situation and priorities before making any decisions.
Exploring Your Options
- Consider a less ideal property: While you may have your heart set on a 2-bed property, it might be worth exploring other options such as a 1-bed flat or even a studio apartment. This could help you get onto the property ladder sooner and provide you with a better living situation than your current house share.
- Renting versus buying: If the cost of buying a property is proving to be too high, you might want to consider renting a 1-bed flat for the time being. While rent in London can be expensive, it could give you the flexibility to leave your current job and focus on improving your mental health.
- Consult with a mortgage advisor: It might be beneficial to speak with a mortgage advisor to get a better understanding of what you can afford and what options are available to you. They can provide valuable insight into the current market conditions and help you make an informed decision.
Improving Your Mental Health
Your mental health is incredibly important, and it’s essential to prioritize self-care during this challenging time. Consider seeking support from a therapist or counselor to help you cope with the stress of your current job and housing situation. Taking care of your mental health will ultimately benefit all aspects of your life, including your career and financial decisions.
Making a Decision
When it comes to purchasing a property in London, it’s important to weigh the pros and cons of each option. Consider how buying a property will impact your overall well-being and whether it aligns with your long-term goals. Ultimately, the decision is yours to make, and it’s essential to choose the option that best suits your needs and priorities.
In conclusion, purchasing a home in London can be a challenging process, especially given the current market conditions. However, with careful planning and consideration of your financial situation and mental health, you can make a decision that is right for you. Remember to prioritize self-care and seek support when needed. Good luck on your journey to finding your perfect home in London! 🏡🌟
Move out of London. You can’t afford it.
Too many things going on here. Home ownership is for someone in a stable phase of life. If you will change careers and take a pay cut, how will you afford to keep paying the mortgage? If you buy first and then change careers, will owning reduce your mobility and limit your employment options?
If I were in your position I would invest a majority of the 100k (keeping 30k or so in HYSA) and find somewhere to rent for the next few years until you’re in a more stable spot career-wise. This will give you flexibility and at least allow you to get out of your current house-share situation.
Why don’t you look for jobs with similar wages? Going from 65-70k to 25k with a mortgage doesn’t make sense when factoring in utilities, taxes etc.
Kind of confused by your post. You want to switch jobs after getting your mortgage, to an expected salary of £25k? How do you plan on paying the ~£300k mortgage on 25 grand?
You’re not in a mental state to be making a decision like this. Buying a place with a 300k mortgage and then going to a 25k job doesn’t appear to be sound decision making. You won’t be able to repay it
Why don’t you switch jobs within your industry, maybe you’ll even get a payrise. Sort out your mental health and then reassess
Did you think of using that money to maybe open up/ buy a business of your own which will make it easier for you to live where you want / less mental strain and continue to rent till you make more money and DECIDE where you actually see yourself living?
u will need a partner to buy with u, that’s how we get our first property
I would move out of London, get a good job in another decent-sized city, buy a home there, and eventually leverage the equity in that home to get a home in London someday. But you might find you like it in that new place!
First, get your life together. Then search a house to buy. Worst case scenario, use a bit of your savings to rent something else. But as most others say; move away from London. It’s one of the most expensive cities in the world to live in. Do so when you can afford it. Doesn’t mean you have to move to Antarctica, just some place you can afford more…
Try a commutable distance from London – Essex has some bargains and is not too far.
Zone’s 1-4 are essentially out of bounds sadly.
Congratulations on some great savings. Sadly though ownership comes with its own pile of problems so don’t think that will magically save everything. Keep saving and find a less stressful job it will all work out.
You have ow income and not much saved, and you’re planning to transition to an even lower, barely subsistence wage. This does not look good for buying a house, regardless what’s lender says.
Would you lend you money?
YouTube Ramit Sethi buying vs renting and do the calculation yourself. He has a video on calculating if buying is worth it for you. I fear you’ll be paying even more with a mortgage
Buy nowhere…if your mental health is so bad & you plan on changing careers, you can’t afford anything on your new salary. Go sort your head out.
This do-able and I did something similar, you could get a 2 bed for £450k in Z4 but there won’t be much left over and you need and an emergency fund. Wouldn’t go down to 25k though from 65k unless you really had too!
Come to the United States, double your income.
Pick a tube or train line which is convenient for your job, and go right to the end of the line and look there. Yes you’ll have a long commute, but you’ll always get a seat and you can just read a book or play switch or something.
For example, Epping is a nice town.
This whole thing sounds like a bad plan to me. You want to get a mortgage and buy a house in London only to change jobs and get 1/3 of your previous salary? That’s sounds like absolute disaster waiting to happen. Just move out of London mate. It’s not worth it.
Concentrate on your mental health first before making a huge decision. I’m worried you’re not thinking things through given that you’ll have a £300k mortgage on a £25k a year salary – that’s not possible and will cause even more negative MH consequences.
Does the new career need to be in London? Think you need to strongly consider other areas of the country.
But take care of yourself, okay? That’s the most important thing. You have a huge amount of savings that most people could only dream of, so be proud of that.
What role/professional qualifications have u got in finance mate
I am just going to say this and leave it here. London is neither affordable nor healthy (mentally) place to live. With 100k savings, there are places in the UK where you can buy 2 bed outright without mortgage and have some money left over. move there, get the first most basic job you find and live a happy a stress free life. Me and my gf moved to Rothesay, Isle of Bute 2 years ago. Bought 1 bed flat for 55k, got part time jobs, work c21 hours per week, earn both around 1k per month, have shit loads of free time, no stress and each of us can save about 200 each month too.
Don’t buy save your money and put it in the stock market, compounding is everything, you will be able to retire comfortably. Whocares about owning a place.
OP, where are you? What are your thoughts? You are getting a decent amount of support. Oh yeah! Forgot Time Difference… tick-tock
Moving out of London is the best thing I ever did for my mental health. I bought a beautiful 4 bed house in Tunbridge Wells and commute in once a week. It takes me around an hour to get to work on the train.
The same amount of money in London would have got me a dingy flat at best. You get a hell of a lot more in the surrounding counties.
Move to Canada. You still get to look at pictures of the queen/king, but you can find small communities with jobs that will pay decently and your savings will be more than enough to help you out.
Plus, those small communities will have singles who like accents. Along with Banks or investment firms for viable job options. You really can’t lose.
I would strongly recommend that you leave your CURRENT house share situation, it seems to be a big drain on your mental health.
Definitely don’t think that you need to buy a home in order to date. Do you think you need a 1br for the status in order to impress your dates? Do you just need privacy? Figure out what it is that you need from your living situation and optimize for that.
Real talk, you are miserable because you are working a high stress job and not giving yourself any of the benefits of doing so. Spend more (NOT ALL) of your money.
Either that or take your 100k in savings and go get a flat in a cheaper spot than London.
You have the ability to make your life better without engaging in an absurd fantasy about giving up an excellent career. This is some weak defeatist shit.