What’s your propery ownership story?
2012: Bought 2-bed flat in London for $585k (my TC then was $90k) 2018: Sold flat for $710k 2019: Bought 4-bed house (also London) for $1.3m. still live here. Current TC $220, 8 YOE.
Do you spend all your income on paying interest? Your first flat has grown only 3% a year, and that’s w/o considering the agent’s commission. Inflation is about 2%. Wealthfront savings account is 2.5%. Meanwhile, you could make times more on stock. Btw, Seattle real estate has doubled between 2012-18.
Interest rates are at historic lows in the UK, and I’ve fixed my rate for 5 years. My monthly mortgage payment is $3800, and my monthly take-home pay is approx $8k (rising to to $11.5k if you include bonus & RSUs).
And yes growth has been horribly stunted by Brexit (my flat was valued at $820k before the referendum). However I saw that as an opportunity to upsize, as larger properties took a larger hit - my house was on the market for $1.85m before the referendum...
House poor much? You’d be better off renting.
Can I ask why you think that? I’m looking for a home to live in for the next 10 years (I have a young baby and would like to have another in the next few years). I value stability (no messing around with landlords) and proximity to good schools (hard to find). Renting a similar property would be $6-7k a month and at the end I own nothing...
I wouldn’t even consider that kind of debt on that low of a tc. I’m not saying it’s low, I’m saying it’s low for a 1.3mil mortgage. One layoff and you are on the road to fucksville. $6-7k rent is basically the same as your mortgage plus maintenance plus insurance etcetc. Your housing market is clearly stagnant and or declining, and inflation plus interest on the principal really is putting an asskicking on the positives of home ownership. Clearly you already have made these choices so why are you asking these questions?
Which area in London
South, near Clapham/Balham area
L5 PM, 8 YOE, great WLB (came from stressful startup, FB in comparison is a breeze)
Nice TC for London. Is that converted from GBP?
🍪
Which neighborhoods in London?
South, Wandsworth
Just wish wandsworth had tube access
Show off
Both of those properties are very unremarkable in London. My house was last sold in 2008 for $660k. Property here is just very expensive.