is my salary enough to buy/rent my first property

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poohead23
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Hi,

I'm currently in my final year of university. I secured a graduate role that pays 40k when I finish uni and was wondering if this salary is enough to rent/purchase property in east london. Nothing too big, a one bedroom flat would suffice.

My second question is would it be more economical to purchase or rent a property at such a young age. I feel like I should go for the latter because I don't plan to stay for more than a few years in my first home. This is mainly because I plan to purchase a bigger home in a few years to support my future wife/child as my salary increases.

My final question is whether I can live comfortably on this salary even after I purchase property. I ask this because I have a girlfriend that I want to bring over from the Philippines and I may need to sustain her needs until she finds a job.

Thanks in advance!
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HoldThisL
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£40k is good for london you'll certainly be able to rent somewhere good+

you won't be able to buy anywhere even if you saved your entire annual salary for a year - no one could, unless you have savings

renting is essentially a waste of money, done for convenience/lack of savings to buy a place. although moving houses is expensive (agents/solicitor fees and tax etc), rent is lost money whereas a monthly mortgage at least goes towards buying something you can resell
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Admit-One
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For a mortgage from most highstreet lenders you're going to need a deposit of at least 10-15% of the property value.

So for a £300k flat you need to be able to put down between £30k-45k and that's before fees and appliances/furnishings.
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ReadingMum
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(Original post by poohead23)
Hi,

I'm currently in my final year of university. I secured a graduate role that pays 40k when I finish uni and was wondering if this salary is enough to rent/purchase property in east london. Nothing too big, a one bedroom flat would suffice.

My second question is would it be more economical to purchase or rent a property at such a young age. I feel like I should go for the latter because I don't plan to stay for more than a few years in my first home. This is mainly because I plan to purchase a bigger home in a few years to support my future wife/child as my salary increases.

My final question is whether I can live comfortably on this salary even after I purchase property. I ask this because I have a girlfriend that I want to bring over from the Philippines and I may need to sustain her needs until she finds a job.

Thanks in advance!
Run your salary through one of the 'what can I borrow' calculators available on any of the major players in the mainstream mortgage market - Santander etc.
You will need to put down at least 10%, preferably 15% of the purchase price as a deposit - this cannot be borrowed money.
The sum of the above will tell you what you have to play with.
Then get onto rightmove (or other property website) and do a search in the area you are considering - that will tell you what your budget will buy you.
You will also need savings for stamp duty, solicitor, survey etc.
The mortgage calculator will tell you what the mortgage repayment will be each month so then you can see what money that leaves you to live off - after factoring in the cost of owning a house (maintenance)
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harrysbar
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(Original post by poohead23)
Hi,

I'm currently in my final year of university. I secured a graduate role that pays 40k when I finish uni and was wondering if this salary is enough to rent/purchase property in east london. Nothing too big, a one bedroom flat would suffice.

My second question is would it be more economical to purchase or rent a property at such a young age. I feel like I should go for the latter because I don't plan to stay for more than a few years in my first home. This is mainly because I plan to purchase a bigger home in a few years to support my future wife/child as my salary increases.

My final question is whether I can live comfortably on this salary even after I purchase property. I ask this because I have a girlfriend that I want to bring over from the Philippines and I may need to sustain her needs until she finds a job.

Thanks in advance!
With a 40k salary you will be able to borrow about 190k.

That is not enough to buy a 1 bed flat in East London I'm afraid.
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Zarek
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House price to salary ratios have gone bonkers. Work on saving, salary progression and finding a partner with good prospects.
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Muttley79
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(Original post by ReadingMum)
Run your salary through one of the 'what can I borrow' calculators available on any of the major players in the mainstream mortgage market - Santander etc.
You will need to put down at least 10%, preferably 15% of the purchase price as a deposit - this cannot be borrowed money.
The sum of the above will tell you what you have to play with.
Then get onto rightmove (or other property website) and do a search in the area you are considering - that will tell you what your budget will buy you.
You will also need savings for stamp duty, solicitor, survey etc.
The mortgage calculator will tell you what the mortgage repayment will be each month so then you can see what money that leaves you to live off - after factoring in the cost of owning a house (maintenance)
They are asking for at least 20% deposit now,,,
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