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Things might finally be starting to look up for those looking to buy their own home in the capital. With the news that in June, for the first time in months, the average asking price of those looking to sell their homes has fallen by 0.5%, now might be the time where people begin to realise that buyers are just not able to pay the inflated property prices that are being asked of them. So, what advice do you need if you’re going to try to buy a property in London in the coming months?
Predicting Trends Borough by Borough
It’s essential to remember that London is a place where – excluding the central areas which are unaffordable to the vast majority of budgets – the prices of the properties rise and fall with the trendiness of the area the properties are in. Therefore, if you’re looking to find a flat or house that doesn’t cost the earth (relative to average London property prices), you should look to areas that are on the up, but are still relatively deprived. Shoreditch in East London was a good example of this three or four years ago, and now areas like Peckham in South East London and Brixton in South London are experiencing similar rises. Get in while the prices are relatively low, and you could find that your house is not just a home, it’s also a strong investment.
Mind the Commute
It goes without saying that London is a big place and you can’t walk all the way around it. For the majority of Londoners, this means getting a travel card that allows you to use the Tube, bus and over-ground within a certain range – depending on the travel card you selected. With such a well-developed public transport system, you don’t necessarily need to worry about living close to your place of work, and this means that you can live where the mortgage prices are at their lowest, and still have the ability to get everywhere you need.
Mortgage Calculation
Regardless of location, there’s no getting away from the fact that a mortgage for a three bedroom house in London is likely to be more expensive than that for a similar property in other parts of the country. You need to set realistic expectations, which you can do using a mortgage calculator. Use tools like the Help to Buy scheme, and you can at least make the most of a (currently) difficult situation.
Improving once you move
Once you’ve moved, if you then decide you’d like to improve, you might be looking for funds to cover improvements. You could consider a homeowner loan to cover the cost of making improvements.
