Can I afford to buy?

[d000hg]

If you're just one person then the fact you can get a lot more for your money further outside isn't that relevant - a single guy doesn't necessarily need loads more space, extra rooms, etc. A nice 1-bed flat in the centre might be the best option, even if it's not what most of us would prefer.

[sociopath]

Disregarding the insanity of the costs, do you think I can afford it? Or are there hidden costs I haven't factored in?

I think your cutting it thin. You don't necessarily need to move out of London to get a better deal. You might be better off in a place like East Finchley, Crouch End or Muswell Hill. 15 mins into central London.

[sociopath]

It's relevant to how much you know about the UK.

Anyway £300 a month left isn't enough.

Service charges have a habit of rising, white goods breakdown and more importantly if your boiler breaks down you could be screwed. It also doesn't matter how new or old these things are they will just randomly break.

Also have you included council tax and bills in your living costs? That's most of your £300 gone.

If you were buying a 2 bed then you could get a lodger in.

Don't forget the work requiring done to the property and services, furnishings etc

And hopefully never ends with a huge tax bill.

[northernladuk]

And there is that coke and hookers habits to feed as well!

[SueEllen]

I think your cutting it thin. You don't necessarily need to move out of London to get a better deal. You might be better off in a place like East Finchley, Crouch End or Muswell Hill. 15 mins into central London.

There are lots of places where you can quickly get into central London. It's a case of knowing the transport links. Unfortunately all the ones I can think of are expensive for that reason.

[PurpleGorilla]

Can I afford to buy?

Disregarding the insanity of the costs, do you think I can afford it? Or are there hidden costs I haven't factored in?

Capital wise the sums look credible, but what you take home each month is important for affordability.

If £1600 is 25% or less than your monthly take home; you should be fine. IMHO

Ok ignore that I didn't see the £300 left bit.

What does that mean £300 left?

£300 left after all bills, or after mortgage paid. If it is the latter - then you can't afford it.

[SueEllen]

Capital wise the sums look credible, but what you take home each month is important for affordability.

If £1600 is 25% or less than your monthly take home; you should be fine. IMHO

Ok ignore that I didn't see the £300 left bit.

What does that mean £300 left?

£300 left after all bills, or after mortgage paid. If it is the latter - then you can't afford it.

He didn't put the cost of estimated service charges in his calculation. Everyone I know who has some kind of lease even if it's for their parking space mentions this.

[jamesbrown]

He didn't put the cost of estimated service charges in his calculation. Everyone I know who has some kind of lease even if it's for their parking space mentions this.

Definitely, the service charges can be several k on a leased flat, much more for a "luxury" development w/ gym etc.

[heyya99]

Capital wise the sums look credible, but what you take home each month is important for affordability.

If £1600 is 25% or less than your monthly take home; you should be fine. IMHO

Ok ignore that I didn't see the £300 left bit.

What does that mean £300 left?

£300 left after all bills, or after mortgage paid. If it is the latter - then you can't afford it.

The 300 is what I have to spare every month after I've taken out bills, mortgage, council tax, service charge, cost of living, etc, out.

I have made some figures more realistic so I have a bit more to spare.

1600 Rent
150 Ctax
12.7 House Phone
10 Internet
20 Water
50 Elect/Gas
65 Oyster
39 Gym
30 Charity
250 Food
150 Drinks
200 service charge
40 Insurance
150 Misc
20 tv license
----------------
2786.7
3245.83 (38950 / 12)
=====
459.13 left over

[heyya99]

The above budget is based on keeping within the tax efficient salary and dividends of next tax year. Of course, if things got tight, I could go over the lower taxed dividends but I'd prefer not to. I'm hoping to buy a home that is affordable even if contracting goes belly up in the near future.