Which property should I buy?

rhian_22f

I have seen two lovely properties which I am interested in. One is tiny and has no outside space but it is immaculate and I would be mortgage free. The other one is much more spacious (2.5 times more floor space), detached and has a massive garden and a big garage/shed. I would need a mortgage of up to £28,000 for the second property but seeing as I'm self-employed and have less than 2 years accounts it may be tricky. Another thing with the second property is that it is being sold by a relocation company which is using 3 agents and my agent told me that they will all still continue to do viewings even if they get an asking price offer so there is a chance of getting gazumped!! I have already made a very cheeky offer 26% below the asking price so that I could go for it without a mortgage but I have been told that it is ulikely to be accepted. Should I just go for the small property and not worry about arranging and paying back a mortgage? Any advice would be great received.
Thanks
Rhian

BitterAndTwisted

Buy the smaller place. Being mortgage-free is a luxury few are enjoying at present, especially as you are self-employed in the middle of a recession. Once you've built up some decent savings and have several years of accounts behind you, you could consider moving to a larger place with some outside space then.

Catatonia

£28k definitely seems worth it to get a property that would be perfect for you.

I was in a similar situation. I could have got an adequate house in an ok area without a mortgage, but I am taking out a fairly large mortgage to get a house that's almost perfect for me which I'll never want to move from. Moving costs so much in money, time and stress that it made sense to me to get the best house I could at the time.

PasturesNew

I'd go for the £28k mortgage, because it's pretty much peanuts and could be covered by a lodger if things got tough. In the long-run you'll be glad you did, for the extra space it gives you. Having no outside space can really do your head in.

£28k's about what .... £25/week? It can't be hard to make that much extra to pay for it.

Norma_Desmond

I'd go for the small mortgage on the 2nd property (could you even get an ordinary loan for that amount??)

Our mortgage is much the same and very affordable - like PasturesNew says, could you really be happy with no outside space at all?

m_13

We were mortgage free and moved to a flat. We have no outside space and neighbours above, below and to one side.

We're now moving to a detached bungalow with a garden as no outdoor space and less storage isn't worth the mortgage payment in terms of quality of life. We also don't like living in a leasehold property and paying a service charge each quarter.

Our new property is a slightly worse, less convenient location but it balances out. What are the locations like? Size isn't everything!

BitterAndTwisted

I agree that a £28k mortgage isn't that much but it sounds like the OP may not be able to secure one without any accounts.

poppysarah

Offer 28k less for the 2nd place?

getmore4less

What's the real prices of each and relative values.

That's much more relevent than the size of the mortgage


What are you actualy looking for in a property
Home and/or investment?
Do you need/want the space?
Parking for you and visitors?
Rooms?
resale?
location?
etc.


2.5 time floor space is very significant what are the two sizes inside?

bristol_pilot

I would go for the second property. £28k is not a large mortgage.

DVardysShadow

bristol_pilot wrote: »

I would go for the second property. £28k is not a large mortgage.

And it would be substantially less than the cost of renting.

The choice in any case is not totally between being mortgage free and mortgaging for £28,000. Possibly your opening offer of 26% below asking, in order to be mortgage free, was poorly thought out, if basically you prefer this property.

You should be thinking about what offer will secure this property, the mortgage you require and whether this is acceptable