Buy now or wait ?- in Bedford

AliceBanned

Hi

I've just been offered a shared ownership flat that I really liked when I first saw it. I hesitated to say "fell in love with" but it is really unusual, spacious and grand looking. It is new build in Victorian style, ground floor with one neighbour above and one to the side. I hate flats in blocks as I've always lived in them and want something better. Apparently lots of other people wanted it but as I am in a Housing Assoc flat and would be giving up my tenancy, I am given priority (assuming this is not a sales pitch by my Housing Assoc). It is beautiful and spacious, but not in the ideal location (Bedford) although I can get to work easily. It will mean moving to a new town. I have been saving up for a deposit but only have £2k so far and it will take another two years to have enough for a small flat near enough to commute to London where I work. i've been looking at shared ownership as it is probably all I can afford, but there is limited choice and I wonder whether I should wait another two years or more and then shop around again and hope to buy in St Albans, where I'd really like to live, or to buy this S/o flat and sell it in two years and then move to St Albans. I know prices probably won't change much within that time. It is my lack of deposit and lowish income that keep me stuck in a rented flat that I'm fed up of. Am I being silly if I just take this one in Bedford although the area is not ideal? And does anyone know Bedford well enough to advise? I like the countryside around it but I know it is not the prettiest of towns.

lincroft1710

Bedford is not pretty but the river embankment is quite attractive. It's a bigger town than St Albans which may/may not be an advantage and like all towns there are good and not so good areas. Commuting will obviously take longer and be more expensive. The only real advantage IMHO is the cheaper (compared to St Albans) housing.

Not knowing how much you earn or can save I can't comment on how viable your 2 year plan is and there is always a possibility of a property price rise. I presume you have other funds set aside for solicitors and moving costs as well as £2K for deposit.

mlz1413

St Albans & Harpingden are expensive so I can see the why have started to look in Bedford, but can you say what you like about those places and what is important to you during your leisure time as that will enable a more constructive answer about Bedford?

Also can you say what area the flat is in? Bedford like other towns has desirable and less desirable areas. It also suffers badly with traffic when the school are in so how do you intend to get to the train station to commute to london?

AliceBanned

lincroft1710 wrote: »

Bedford is not pretty but the river embankment is quite attractive. It's a bigger town than St Albans which may/may not be an advantage and like all towns there are good and not so good areas. Commuting will obviously take longer and be more expensive. The only real advantage IMHO is the cheaper (compared to St Albans) housing.

Not knowing how much you earn or can save I can't comment on how viable your 2 year plan is and there is always a possibility of a property price rise. I presume you have other funds set aside for solicitors and moving costs as well as £2K for deposit.

Hello

Thank you so much for replying. I don't have much more saved for the costs of buying, but I forgot to mention that this is a Rent to Homebuy scheme, ie I can start off renting 100% for up to five years if I like, and buy a minimum of 25%. The rent goes down more than the proportion bought, so if I bought 50% if would be £67.6k and the rent £120 per month. The flat is valued at £135k (two bedrooms). I earn £25.5k at present but hope to increase this, although my work is not stressful so this makes up for the relatively low pay for going in to London. I also work from home one day per week but doubt that this could be increased.

I agree that the cost is the only advantage to St Albans. I think prices in St Albans have dropped quite a bit though and have not risen back up yet so I even think parts of it may be affordable for me if I saved up a massive deposit. Just not sure whether buying the Bedford flat would help or hinder me in terms of eventually moving to an area that I really want. I work and socialise a lot in London during the week so don't mind and I don't mind the travelling as long as I know it's not for the next 5 or 10 years!

AliceBanned

mlz1413 wrote: »

St Albans & Harpingden are expensive so I can see the why have started to look in Bedford, but can you say what you like about those places and what is important to you during your leisure time as that will enable a more constructive answer about Bedford?

Also can you say what area the flat is in? Bedford like other towns has desirable and less desirable areas. It also suffers badly with traffic when the school are in so how do you intend to get to the train station to commute to london?

Hi

Thanks for your help. I love St Albans because it has lots of live music, a great atmosphere in the town day and night and is very accessible to London, walking in the Chilterns, dance classes, yoga, gym etc. St Albans is laid back and friendly. It also has traffic problems but I can't think of any time when anyone has been aggressive on the road - it seems very civilised and has a community feel. I think it's the community feel that I like, without being a small village community if you know what I mean. I could go on I guess.. oh the lovely cathedral and churches, parks.

I have an allotment where I'm living so I would miss that, but I'm sure there are some in Bedford that I could go on the waiting list for. the flat doesn't have a garden but has a bit of outside space and parking. I actually prefer allotments to gardens, as I have had them for years and have got used to that community feel of them that is away from it all.

Bedford - the flat is on a quiet street which is brand new, off Goldington Road. I think it is not great for the station to London, but there are so many stations in Bedford I'm not sure yet. I'm trying not to listen to friends or take advice from them as there is a lot of snobbery about areas etc and most of my friends are in London but I do prefer to live outside and have some (hopefully) fresh air and more space, despite the travel. So that is another factor that is influencing me; Bedford has a bad (ish) reputation but I have lived in so called "rough" areas and been perfectly happy because my neighbours were good etc. Despite all this, I have a thing for St Albans..which I'm trying to get over.;)

Oh I forgot - the commute - this needs thought. Possibly a folding bike, if the station is too far to walk and the traffic bad. I suppose parking at the station is very expensive as well. That is a sticking point and I will need to look around the area over the weekend. i appreciate any advice you can give if you know the area! Thanks

mlz1413

Goldington Road is close to Renhold village that would allow walks, but not excately rolling hills! I only know of alloments on the other side of town (nearer the train station) but I'd ask the council to advise you as alloments can be surprisely tucked away.

Bedford seriously lacks live music, not sure why as it used to be a front runner for bands. Gyms are all around Bedford but I haven't any knowledge on the other activities, Bedfords papers are delivered free and they are the Times & Citizen out on Thursdays and Beds on Sunday, both can normally be bought as a local newsagents.

Bedford has two train stations the Main one is the other end of town, probably 1.5 miles so an easy bike ride away, their is another called St Johns which maybe nearer but there's not much in it, I would check which trains stop at that station though.

With S/O I would check the costs of leaving, my mum had to pay for a valuation, wait X weeks for it to advertised by HA and then allowed to put on open market. I'm sure she had to pay the HA legal fees too. It is also valued at the time of selling to the % are worked out on that and not what you bought it for - so it could be expensive if you come to Bedford and then don't like it.

Bedford has a Travel Lodge which if you book in advance you could get for £19 per night. Might to be worth coming over and checking out the night life and having time to wondered around. I'm not far from the train station so if you want a bit of a tour PM me.

lincroft1710

Goldington Road is very long and also very busy, you could be half a mile from town centre or almost 2 miles! The St Johns Railway Station is basically a connection to Milton Keynes, all direct London trains go from the main station in Ashburnham Road. There are allotments on Newnham Avenue, which is off Goldington Road and off Brickhill Drive/Manton Lane.

I think you should look at your finances and work out how much you could currently save each year living in SA and how much you would save living in Bedford with increased cost of season ticket and the rent. Do you really need a 2 bed property? Unless there is a 95% mortgage availability with S/O, you wouldn't be able to get a mortgage even for 25% share as you won't have enough for a deposit. So you may have to wait for a year or two to actually buy. If you're happy in your flat in SA there's little point in coming to Bedford to live for a few years if you intend to return to SA and buy there.

AliceBanned

mlz1413 wrote: »

Goldington Road is close to Renhold village that would allow walks, but not excately rolling hills! I only know of alloments on the other side of town (nearer the train station) but I'd ask the council to advise you as alloments can be surprisely tucked away.

Bedford seriously lacks live music, not sure why as it used to be a front runner for bands. Gyms are all around Bedford but I haven't any knowledge on the other activities, Bedfords papers are delivered free and they are the Times & Citizen out on Thursdays and Beds on Sunday, both can normally be bought as a local newsagents.

Bedford has two train stations the Main one is the other end of town, probably 1.5 miles so an easy bike ride away, their is another called St Johns which maybe nearer but there's not much in it, I would check which trains stop at that station though.

With S/O I would check the costs of leaving, my mum had to pay for a valuation, wait X weeks for it to advertised by HA and then allowed to put on open market. I'm sure she had to pay the HA legal fees too. It is also valued at the time of selling to the % are worked out on that and not what you bought it for - so it could be expensive if you come to Bedford and then don't like it.

Bedford has a Travel Lodge which if you book in advance you could get for £19 per night. Might to be worth coming over and checking out the night life and having time to wondered around. I'm not far from the train station so if you want a bit of a tour PM me.

How kind of you to offer to show me around! And thanks for the advice - I didn't realise that the value of the share depends on the valuation at the time of selling; this makes a big difference, especially in this market on a new build property, where there is no room for bargaining when I buy.

Everything is pointing to me not moving there. The flat is the only thing that appears to be right; all the other factors are not. I'm going to think it through and do more calculations today. I have an appointment to see the flat tomorrow morning and then I can ask the HA some more questions. My sense is that I will turn it down as I definitely don't want to make an emotional decision. Thanks for being so helpful, I'll let you know if I would like a tour and I'll let you know what I decide!

AliceBanned

lincroft1710 wrote: »

Goldington Road is very long and also very busy, you could be half a mile from town centre or almost 2 miles! The St Johns Railway Station is basically a connection to Milton Keynes, all direct London trains go from the main station in Ashburnham Road. There are allotments on Newnham Avenue, which is off Goldington Road and off Brickhill Drive/Manton Lane.

I think you should look at your finances and work out how much you could currently save each year living in SA and how much you would save living in Bedford with increased cost of season ticket and the rent. Do you really need a 2 bed property? Unless there is a 95% mortgage availability with S/O, you wouldn't be able to get a mortgage even for 25% share as you won't have enough for a deposit. So you may have to wait for a year or two to actually buy. If you're happy in your flat in SA there's little point in coming to Bedford to live for a few years if you intend to return to SA and buy there.

Hi again Lincroft. Thanks, this is very helpful. I just need to be encouraged to use my brain and not my emotions here. There will be other flats that I really like and to be honest I've only seen or 6 at this stage. I'm still considering the Bedford flat and going to see it tomorrow. I'll do all the figures today and have a rational think about everything and try not to be swept off my feet by that flat. I don't actually live in SA and don't know whether I can afford to buy there but prices seem to have dropped quite a lot - perhaps because it benefited more from the boom than other areas, I don't know. I live in Hitchin at the moment which is really nice but expensive I think for what it is. SA has more of a buzz.. I think I probably need to be patient and keep saving, but I do feel like I'm getting nowhere fast.. this is a real test for me lol.

Thanks again for your help, I'll let you know what happens..

brit1234

lincroft1710 wrote: »

there is always a possibility of a property price rise.

Hopefully not, it looks like the house price crash has resumed. All the figures are going down and that was for peak season. Nationwide is expected to continue the trend down and go negative this month with the others.

Nationwide
Mar + 1.0%
Apr + 1.1%
May + 0.5%
Jun + 0.1%
http://www.nationwide.co.uk/hpi/historical/jun_2010.pdf

Halifax
Mar + 1.0%
Apr - 0.1%
May - 0.4%
Jun - 0.6%
http://www.lloydsbankinggroup.com/me...dexMay2010.pdf

Land Registry
Mar - 0.3%
Apr +0.2%
May - 0.2%

Acadametrics
Mar - 0.5%
Apr - 0.7%
May - 0.2%
Jun - 0.5%
http://www.acadametrics.co.uk/acadHousePrices.php

Better saving for 2 years and buying in St Albans as the house price falls accelerate. As for shared ownership my views are well known as well as all my friends bad experiences. I recommend you save and wait the 2 years.

Give it a week and look at the house price survey results from the big institutions coming out. Hopefully when some show 4-5months of falls it will give a better indication of what's going to happen.

lincroft1710

Alice, having had a look at the most local paper property pages, a 1988s 2 bed lowrise fat in a reasonable area is on offer at £120K and a 1 bed cluster home near Tesco Goldington at £112,500. Both are "private" builds. These make £135K for an HA 2 bed flat rather expensive in my view. Even if property prices remained stable I would seriously doubt if you would recoup all of your capital investment in the short term if you did go for S/O.