Can I afford to buy?

[SueEllen]

So what do you suggest he does then?

Actually do some basic research including talking to real people who are older than him e.g. in their 50s. Coming on here and asking "Can I afford it?" isn't research.

The fact he doesn't know about LTV means he should do a lot more research especially if he's buying a flat. Flats are leasehold even if the owner of it has share of the freehold. This can cause a whole new world of pain.

[heyya99]

Actually do some basic research including talking to real people who are older than him e.g. in their 50s. Coming on here and asking "Can I afford it?" isn't research.

The fact he doesn't know about LTV means he should do a lot more research especially if he's buying a flat. Flats are leasehold even if the owner of it has share of the freehold. This can cause a whole new world of pain.

Lot of presumptions there. I do know what LTV is and have spoken to lots of older people. I'm now getting the opinion of fellow contractors. I'm not going to buy based on the opinion of anonymous posters on an internet forum but I could read a view that I hadn't considered and add that to my decision.

[PurpleGorilla]

Can I afford to buy?

OP - don't sweat it. You're bright enough to earn £450+ a day; you will figure this out.

Go lean on +50's advice on housing. Gone are the days that a beans on toast diet got you your first deposit.

Carpe Diem. PG

[barrydidit]

If you're taking high dividends as a one off then this would attract additional income tax when your SA return is submitted, plus trigger payments on account for the same amount of tax the following year split 50:50 between July and January. I believe you can reduce these payments on demand when it's a one off situation. Your accountant will be able to deal with this, though i think I spotted an option on the SA portal to 'reduce payments on demand' if you're flying solo.

It might not help you but the thought of paying £450k for a one bed flat makes my eyes water. As others have suggested, trading commute time will get you more space for less.

[heyya99]

The annoying thing is, if I reduce my budget to 400, then the repayments are still over 1500 per month. If that is the case, I'd prefer to take the hit on the deposit, but have a nicer, more spacious place.

Re getting a place further out, yes it's an option but since I'm not from this country, I would like to live as close to central London as possible. Otherwise, I might as well move home. It's a matter of what one values more; being down a lot of money but living centrally and being happy, or saving money but being stuck standing in an over-crowded London Bridge station staring at a board telling me my next train isn't for 45 mins or worse cancelled. Yes 450k for a one bed is criminal but the alternatives aren't rosey either.

[SueEllen]

That's drastic about living in Central London or moving home.

[PurpleGorilla]

Where are you from heyya99?

There are some other possibilities? Brighton, Cambridge, Oxford etc?

[heyya99]

Where are you from heyya99?

There are some other possibilities? Brighton, Cambridge, Oxford etc?

Scotland. None of those appeal to me. If I have to do that I'll rent centrally.

[stek]

Scotland. None of those appeal to me. If I have to do that I'll rent centrally.

Ever considered a caravan in a field in Ecclefechan? I know people...

[PurpleGorilla]

Scotland. None of those appeal to me. If I have to do that I'll rent centrally.

I swear I thought you were going to say LA.