Larger Property or No Mortgage?

westv

Assuming everything else being equal what would most people here choose - assuming there would only be 1 or 2 of you.

A large 1 bed flat bought outright or a 2 or 3 bed property with a mortgage over, say, 10 years.

I can see advantages in both options.

Buying outright means that whatever happens to your income you never have to worry about paying a mortgage and the property can never be taken away from you by a bank. However, it's still only one bedroom.

On the other hand having a mortgage is a debt to be repaid but, when it's paid up, you have a larger property and potential for downsizing if you needed/wanted to.

poppysarah

2 bed small mortgage? repay quickly or save a bit longer?

QTPie

Really depends on where you are in life ....

If you are young and likely to find a partner, maybe have kids then think longer term and go for something bigger now (since moving again is costly and the cost of change will most likely increase....). Quite often you see people on here who have looked too short term, then need to mve again because of starting a family...

But different people look for different things in a home. Yes it would be great to be mortgage free, but don't forget to look longer term...

QT

westv

QTPie wrote: »

Really depends on where you are in life ....

There will only be 2 people max living there.

PasturesNew

Depends on the sums we're talking about, but a 1-bed flat's not really ideal for most people for the rest of their lives, a 2-3 bed is more flexible over time, until you go into a sheltered bungalow.

I would say, though, it's not the size (1-bed) I have an issue with, it's because it's a flat.

So, 1-bed flat or 1-bed house? 1-bed house every time.

westv

PasturesNew wrote: »

Depends on the sums we're talking about, but a 1-bed flat's not really ideal for most people for the rest of their lives, a 2-3 bed is more flexible over time, until you go into a sheltered bungalow.

I would say, though, it's not the size (1-bed) I have an issue with, it's because it's a flat.

So, 1-bed flat or 1-bed house? 1-bed house every time.

I have actually seen a one bed flat (just as an example) that has more square feet of rooms then the 2 bed house I'm in now!! Of course, an extra bedroom is always handy though.
Also the flat I saw as an example had it's own garden.

zzzLazyDaisy

I'd go for the two bed house and pay pay the mortgage of as quickly as possible so that I'm mortgage free in the shortest possible time.

Why?

1 even if there are only two people living in the place, a guest room for visitors is always useful and doubles up as an office/whatever when not in use as a bedroom
2 when you come to move a house has a larger pool of potential buyers than a flat
3 Flats have communal areas which (in my experience) are poorly looked after
4 you are more likely to have noise disturbance in a flat than a house
5 a house has its own garden (which may or may not be a plus)

Owain_Moneysaver

I think 1 beds are usually overpriced for the space they offer, and they're usually the first to be hit by property crashes and negative equity (although you won't have a mortgage)

2 beds allows you the option of taking a lodger in the second room (tax free income under the Rent A Room scheme) which gives you something to fall back on. If you do go for this try to find somewhere where neither bedroom opens off the lounge, and with a separate lounge / kitchen.

tyllwyd

Even if there are only two of you living there, it is still nice to have a junk room/spare bedroom/study etc. To some extent it would depend on the property - a really nice one bedroom flat might be more attractive than a claustrophobic two bedroom.

DawnW

It depends on your ages, and your job situations. My (cautious, possibly overly so, from previous experience) preference would be to buy the 1 bed outright, given the uncertain employment situation (which is going to get worse - I am old enough to remember the last Tory government; and don't for heavens sake rely on benefits being available unless you are starving, see the press :eek:). You will then be secure, and can save if possible / lucky and review situation in a few years when all has hopefully settled down a bit.

I suppose it partly depends on other things though, like the relative sizes of the properties - someone above mentioned that some 1 beds are more spacious than many 2 beds; I have seen that as well. Also, the location, whether it is a nice are, convenient for work etc.

Good luck with whatever you decide x

sonastin

My choice would be a 2 bed house over a 1 bed flat any day. But then my preference is so strong that I would never have moved into a 1 bed flat anyway!

I like the idea of having a spare room for friends / family / carers to stay in, which can also double as a hiding place for junk away from the main living areas. I also like having the space away from the neighbours - the only place I ever felt uncomfortable with my neighbours was in a flat rented when I was working away from home.

Depends on the relative sizes and relative costs but I think I would always choose the 2 bed house option.