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Let's talk housing; >first year of university >will

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Let's talk housing;

>first year of university
>will have £25,000+ saved by the end of my degree
>currently live outside of London
>most likely going to work in London
>don't know what to do housing wise when I get a job

should I live in or out of london? and should I rent for a few years first, or just straight up buy? A lot of people I know who are 22/23 don't have close to £25k in savings so that gives me an advantage I guess.

I know it's long thinking as it's 4 years away, but any thoughts?

property general thread i guess too.
Depends, can you mitigate the costs of owning a home. Taxes, insurance, Maintenance, and mortgage interest.

as far as homes go 25k is a drop in the bucket.
and if you're really going to get the compound savings affect of putting money into your home you'd need a house below around the 75k price. I'm pretty sure that buys you a shitty house in london.
When leveraging assets you rarely want to leverage the cheap ones, you want to leverage the costly valuable ones.

also transfer costs for homes are not cheap expect to pay 2-3% of your purchase price, in and out. without a realtor.

origination costs occur in mortages usually 1%

So your 75k house costs you between 80k and 85k soup to nuts. so 6-13% inflation required to get in. double it to get out.

all that before interest, taxes, and insurance. everything said and done and the market being very generous, you'll have made a real 3% after a decade.

most housing cycles are about about a decade, but most people move every 7 years. if you keep your house over a cycle or two, its much better.
>new builds
I lived in London for many years. It's a complete shithole and wouldn't recommend it.

If you have 25K in cash you cannot buy anything (not even a car garage box in london... not joking)

Also 25K will not be enough for a mortgage.. You need 40 % as a downpayment upfront if my memory servers me right.

So if you buy a 300K house you need to have 40 % of that on your bank account. so that's 120K in cash savings..

And you will get nothing reasonable for less than 300K.. unless you want to live in a place like this.. (and even there you pay for 40 year old worn out flats with prostituting and crack smoking neighbours 200/250K)


Also when it comes to mortgages you need a decent credit history, permanent job contract, and likely have the same job for a couple of years and other similar requirements.
don't listen to this guy btw... as he clearly nows nothing about the UK or London...

75K , are you have a laugh...


also transaction costs in London are not 2 to 3 percent.. they can easily rank up to 10 percent of the sales price.

You pay stamp duty to the government (a type of tax) How much it is depends. Normally 5 percent.

Mortgages costs in London are not simply 1 percent and it depends on what kind of mortgage you get (they are numerous dozens of types of mortgages, )


you have no idea what you are talking about.
I'd like to work in London for a year or so as a Java developer, preferably in banking. I have 5-6 years of experience.

If I live in a shithole apartment and get paid 500 a day how much could I spare theoretically?

My only requirement is no roommates.

One of the biggest problems at the moment is the liquidity crisis, i.e. you might be able to afford the mortgage, but that property you want is part of a closed bidding process and you are playing against other buyers who have cash, because that's what every rich fucker is doing right now; treating the UK's housing as a safe haven/speculative asset because everybody needs housing, the UK is economically quite safe, and it's clearly apparent that there have been insufficient planning reforms to match build rate to immigration. My brother has tried a number of times to get houses on the South coast but it's been real shitty, because everybody outbids him and/or offers to buy in cash. This situation is going to get much worse in the short to medium term.

That said, if you find a nice girl who has the same amount saved and want to risk it, then £50k is a deposit for a flat if you don't want a huge mortgage, and you might find that flats are about to come down in price if the Buy to Let tax changes lead to a sell off in particular places. The British property market is localised however, so don't expect this to hit London where there are a large amount of chinks and ruskies with too much cash who won't be hit by the new rules. Try to find places where mum and dad first time property investors are likely to have parked their money.

So forget London unless you want to rent, and that guy who said you need a 40% deposit is talking out of his fucking asshole, it's about 10%.

I'm just gonna live with my parents forever and pretend like I'm not an adult. Fuck this life, Labour and Conservative fucked us all over by not building houses and I'm expecting to pretend to be a grown up or get a job 300K starting with a Maths PhD to buy a fucking house.

If you get you get 500 per day it are most likely temporarely contracts/projects and not full time employment job.. So for 4, 6 or 8 months only.

When a bank needs to update it's internal network for example and hires external specialized people to do that.

500 per day will get you in a high tax bracket quickly. So you pay overall 40 percent tax and up to 20 percent mandatory national insurance,

500 minus 60 percent is: 200 per day left to start with.. which is pretty good.

I've seen 75 pound per week apartments. Usually it's above Achmeds hallal butcher and your neighbours will be single Faziz from Somalia with her 5 children. Rasta Ace who is an ex convict from Jamaica and weird old Janice who keeps 20 cats in her place.
so basically 200 a day*20 is 4000 minus lets say 900 a month for a more decent aparment is realistic? In total lets say I could live off of 1500 a month?

I'd rather avoid the total shithole areas so I'm willing to pay just a little more for that.
>it's about 10%.

not for first time buyers....
It's hard to get something for 900.. certainly not something decent.. I've seen student rooms going for 7/800/850. So that's just a room..

6 years ago I rented a whole house which costed me 1300 pound per month. The house was pretty good actually.. but the neighbours were all unemployed Nigerians, about 75 percent in the whole street.

I lived in this direction (which is a really rough area) and as you can see it all starts from 11/1200 per month.

Also bills are most of the time excluded. So you have to pay gas electricity water and council tax as well. I paid 60 pound council tax per month and don't remember water gas electricity, but those were similar amounts..

I'd be happy with a one room flat basically. So definitely dont need a whole house. Probably would be better to live somewhere else but all the investment banks seem to be in London and I'd really like to have a project there just for good reference.
also.. Travel cost are one of the most expensive in Europe.. I paid around 60/70 pound per week to go from Lewisham to Twickenham (where I worked(

so that's roughly 250 per month on travelling only.
you can get something like this for the money (you can't really go out at night though as you will get robbed or assaulted by drunks.)

File: job.png (57KB, 1449x869px) Image search: [iqdb] [SauceNao] [Google]
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I assume job postings are gross right?

For example a job like this? Obviously I wont be applying for this but this 500-700 pounds seem to be consistent.

Also I know London is expensive, but I'm willing to live like a student (again) since I'd like to spare as much as I can. If I dont get mugged daily I'm okay with living with third worlders even.

I also heard from pretty much everyone that London is a shithole which makes me a bit anxious.
thats lovely. Are these tiny houses the norm? I lived in Germany before where these big apartment buildings are the norm in cities where you have several flats in one building.
everything is tiny because people split properties up and rent it out seperately to make more money. So for example in that case.. The ground flour is rented out for 950 and the upperfloor to someone else for 950 as well.

Job postings are all gross yes.. as it depends from person to person how much tax you pay..
I started my working career in london. As a foreigner it's hard to get those kind of jobs but not impossible, as you can imagine hundreds and hundreds of people apply on the same job posting (london has nearly 8 million people, and greater London 2 mill more so around 10 million)

this is a good site: www.reed.co.uk ( I've had around 20 job interviews due to that site)
Also whats with the 20% health insurance? Some online tax calculator says you need to pay 4%?

Well I'd like to move London before so I'd be a "local". The truth is, I get job offers on Linkedin anyway and in IT there are more jobs than experienced people.
Good site, thanks
I moved to London recently, and this is what I've found so far:

A room in a flat share is generally £600-£900 depending on where in London you want to live. Bills are generally on top of this (but not always).

A 1 bedroom apartment is £1100 - £1400

If you're contracting, you can setup your own company and pay yourself a salary and dividends. It's not hard to setup, and will save you money since it allows you to reduce your tax. Plus you have the benefit of charging a 20% VAT on your services, yet pay a lower VAT rate to the HMRC (I pay 12.5% this year, so I gain an extra 7.5% income).
sorry you are right. I paid around 13/14 percent . depends in which category you are and how much your earnings are. If you are in a pension scheme you pay less...

el bumpo
Thread posts: 26
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