£38k savings - should I buy a flat or keep saving?

Doozergirl

the_3rd_dynasty wrote: »

You're right that I am assuming this but let's say I kept it for two years. As long as the town centre and local infrastructure doesn't implode or anything disastrous like that, what are the chances that it will be worth less than what it is now? I would have thought very slim especially with all the talk of house prices having already bottomed out. Surely there is more chance of an increase in value in two years than a decrease?

You need to look at the leases on these properties. Nothing is cheap unless there is a reason and nothing goes to auction without a reason either. If there isn't a reason, then they will go well over guide.

You could potentially sell on again even with a problem for near enough the same price in a couple of years and enjoy free living but how decent anywhere is at that price, I'm entirely unsure.

It's very risky to look at renovating places like these to sell on. Very risky considering the outlay to renovate versus the potential to make anything on the final asking price.

Buying property isn't simple. Buying cheap property is a minefield.

the_3rd_dynasty

millym wrote: »

OP, I know Paisley well, and had a look on rightmove. The first flat that I would even consider looking at was in the East End and at a fixed price of £56,500. And I don't mean to buy, I mean as a possible rental, and even then, it would have to be about £300ish per month.

There is no way that you would be able to rent out a flat in the west end - not a nice place. I certainly wouldn't recommend living there. I would keep your money and buy somewhere nice. There are nice areas in Paisley - but not for £25k. Sorry.

Ok, you probably know Paisley better than I do. I've driven through some of these areas quite a lot recently and they didn't appear to be too bad I thought. I think I may even pound the streets later this week to get a better idea of what the place is all about and hopefully get a few viewings in too just to see how bad these places may be... I know this area isn't Bearsden or Milngavie but why is the West end not a nice place in your opinion?

PasturesNew

It ... looks ... bl00dy awful.

I'd rather live in a van. The £10k one that is, in Washington.

Doozergirl

PasturesNew wrote: »

It ... looks ... bl00dy awful.

I'd rather live in a van. The £10k one that is, in Washington.

Vans are usually more expensive!

millym

Ha, I just had a look at that property going for O/O £26K. Doctors, nurses, young professionals! Not a hope in hell of renting it to them. If you're very lucky you might get a student, but more likely you'll end up with a very long void period, then eventually rent to some wee guy on the dole, who'll spend his LHA on dope and lager, and cost you money to evict.

If I were lucky enough to have the money that you've got, no way on earth would I invest it in such a property. Feel free to pm me; I can give you lots of info about the Paisley area.

the_3rd_dynasty

PasturesNew wrote: »

It ... looks ... bl00dy awful.

I'd rather live in a van. The £10k one that is, in Washington.

I think this is where there could be a difference. I had a look at that Washinton place and actually thought that for £10k it seemed ok. It's not the Chelsea embankment but it's £10k after all. Even exploring via the Streetview link, I'm sure I've seen a lot worse.

millym

Doozergirl wrote: »

You need to look at the leases on these properties. Nothing is cheap unless there is a reason and nothing goes to auction without a reason either. If there isn't a reason, then they will go well over guide.

You could potentially sell on again even with a problem for near enough the same price in a couple of years and enjoy free living but how decent anywhere is at that price, I'm entirely unsure.

It's very risky to look at renovating places like these to sell on. Very risky considering the outlay to renovate versus the potential to make anything on the final asking price.

Buying property isn't simple. Buying cheap property is a minefield.

Yeah, the reason these properties are going to auction is that they will have been up for sale for a very long time, and this is a last resort. They will sell to someone who doesn't know the area, but thinks that they will at least be able to rent to students or young professionals, but anyone who knows that area knows differently.

I wouldn't recommend buying there to live in either. Plus, you will really struggle to sell in the future.

Bubblyblue

I also know Paisley well & had a look at the 4 flats at auction 26k & under. My opinions are
26k flat is in a block that is a majority of student lets for the UWS, not sure about a 1 bed as students tend to flat share to keep cost down.
25k flat also majority of sub lets mixed tenants very slow movers when up for sale
22k flat better area and sell quicker depending on current market conditions of course (I have a few friends who have bought & sold here over the years)
19k flat - DONT TOUCH!!
Hope this helps

millym

the_3rd_dynasty wrote: »

Ok, you probably know Paisley better than I do. I've driven through some of these areas quite a lot recently and they didn't appear to be too bad I thought. I think I may even pound the streets later this week to get a better idea of what the place is all about and hopefully get a few viewings in too just to see how bad these places may be... I know this area isn't Bearsden or Milngavie but why is the West end not a nice place in your opinion?

Hi! It does probably look ok, but the sort of people who would want to live there are not the sort of tenants you want. I lived in Paisley for nearly 20 years, of my adult life, and I would not live in that area.

Feel free to ask me about any properties in Paisley, and I'll give an honest opinion.

the_3rd_dynasty

Bubblyblue wrote: »

I also know Paisley well & had a look at the 4 flats at auction 26k & under. My opinions are
26k flat is in a block that is a majority of student lets for the UWS, not sure about a 1 bed as students tend to flat share to keep cost down.
25k flat also majority of sub lets mixed tenants very slow movers when up for sale
22k flat better area and sell quicker depending on current market conditions of course (I have a few friends who have bought & sold here over the years)
19k flat - DONT TOUCH!!
Hope this helps

Interesting. It was actually the £22k flat I parked up outside to have a look at externally and it seemed reasonable.

Were you looking with a view to buying and then renting out?

I'd like to buy a real sh*thole of a place and renovate it but of course it does have to be in the right area with potential.