Is buying residential property now unwise?

[MrWebDev]

Errrr.....why?

He probably won't be able to buy feck all then

All jokes aside, you're not wrong. 250K isn't going to get you anywhere in London really, this is the dilemma many face. It's crazy that many people earning in or around 6 figures (or a respectable permie salary) in a year still have to seriously contemplate the risk of buying their own property.

[jonneymendoza]

All jokes aside, you're not wrong. 250K isn't going to get you anywhere in London really, this is the dilemma many face. It's crazy that many people earning in or around 6 figures (or a respectable permie salary) in a year still have to seriously contemplate the risk of buying their own property.

yea man nowhere:

Property for sale in Untitled (Drawn Area) - Flats & Houses for sale in Untitled (Drawn Area)

Took me to seconds to find a large list of properties in just north/east london.

[WTFH]

I recommend the OP gets a 200/250k max flat, pay that off in 5-7 years(assuming his still in the contract game and sell up for a profit and let him go buy that half a million 3 bedroom yard.

Half a million doesn't buy much of a 3 bed house in the south east these days, so in 5-7 years time, it's unlikely that it will buy a big house.


(this is why interest only mortgages are a waste - you might be saving on the repayments, but when you come to sell the house in 25 years time, the equity on it will only be enough to buy a considerably smaller house than the one you are currently in. Short term savings <> long term benefits.

[WTFH]

yea man nowhere:

Property for sale in Untitled (Drawn Area) - Flats & Houses for sale in Untitled (Drawn Area)

Took me to seconds to find a large list of properties in just north/east london.

I looked at what you queried. Changed it to 3 bedroom house. Several options were boats. Even more were "Over 60s lifetime lease", so not exactly an option for a young contractor.


Property for sale in Untitled (Drawn Area) - Flats & Houses for sale in Untitled (Drawn Area)

[jonneymendoza]

I looked at what you queried. Changed it to 3 bedroom house. Several options were boats. Even more were "Over 60s lifetime lease", so not exactly an option for a young contractor.


Property for sale in Untitled (Drawn Area) - Flats & Houses for sale in Untitled (Drawn Area)

What would a young contractor need 3 bedrooms..

[jonneymendoza]

Half a million doesn't buy much of a 3 bed house in the south east these days, so in 5-7 years time, it's unlikely that it will buy a big house.


(this is why interest only mortgages are a waste - you might be saving on the repayments, but when you come to sell the house in 25 years time, the equity on it will only be enough to buy a considerably smaller house than the one you are currently in. Short term savings <> long term benefits.

You also can't assume that you will be earning 400pd for the next 10 years. Contracting is a risky business and you shouldn't plan your finances and way of living thinking you be earning that amount for the rest of your life. That's my point.

[MrWebDev]

I looked at what you queried. Changed it to 3 bedroom house. Several options were boats. Even more were "Over 60s lifetime lease", so not exactly an option for a young contractor.


Property for sale in Untitled (Drawn Area) - Flats & Houses for sale in Untitled (Drawn Area)

I second that. Once you take off the shared equity and non-retirement properties, I think I counted 8 flats and 3 houses.

[MrMarkyMark]

yea man nowhere:

Quite a few from your search, in any decent area, are shared ownership.

So a load of carp basically.

sell up for a profit and let him go buy that half a million 3 bedroom yard.

Not on shared ownership he won't.

You also can't assume that you will be earning 400pd for the next 10 years.

Wouldn't get out of bed for it, that was my rate 15 years ago, now

[jonneymendoza]

Quite a few from your search, in any decent area, are shared ownership.

So a load of carp basically.



Not on shared ownership he won't.

Filter it out and you will see there's a few. That's just one part of London. Not even checked south or west.

[jonneymendoza]

Quite a few from your search, in any decent area, are shared ownership.

So a load of carp basically.



Not on shared ownership he won't.



Wouldn't get out of bed for it, that was my rate 15 years ago, now

LOL are you a software developer?