We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Confusion : Shared ownership house or shared ownership flat

Hi all,

Hope you guys can clarify this issue, and help us in arriving at an informed decision.

A bit of background - we are first time buyers (young working couple in early 30s, no children) - and are interested in buying a Shared ownership property in Oxford. Now, the situation here is that we have two great options.

1) A flat, resale shared ownership property (6 years old, in good condition) - it's a 1st floor flat with a balcony, 2 equal sized double bedrooms , separate kitchen , and living room, dedicated off-street parking in Cowley, Oxford which is 10-15 mins walk to my work place or 5 min bike ride. (30 % share - rent+charges=£475, monthly mortgage =£275 roughly)

2) 2 bedroom shared ownership house (2009 build, well maintained, 50 % share - rent & charge- £260, monthly mortgage=£575 roughly) - mid terrace house, separate kitchen, living room on ground floor, 2 bedrooms (one smallish) upstairs, and pristine small garden with shed.However, this is in Kidlington which is just outside Oxford (I mean 7-8 miles from my workplace- 32 min bike ride or 40 mins bus)

Both are essentially move in properties , similar price( £s15000 difference in total value of the properties )

We are very confused regarding which one to go for. But the general consensus seems to be that you should always choose a house over a flat.

Would a house give us a bigger return on our investment? The value of both properties will increase whichever we choose, and I guess the flat in Oxford would stand a better chance of selling? Essentially, due to the nature of my job, may be in 5 years down the line, we would like to sell the place to move to another city.

Sorry if this is all over the place. Hope it makes sense.

We would really appreciate your thoughts, and comments!

Many thanks

AB
«13

Comments

  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Kidlington is the place on the police shows isn't it?

    How do you feel about paying for full repairs on a property you only own part of? (If you've read the forum there was are many recent threads about shared ownership)
  • Thanks Sarah! Dunno about the police shows, but Kidlington hosts the Thames valley Police headquarters. Am aware of the repairs and etc on shared ownership properties. But, it still cheaper than paying rent for a decent 2 bed flat in Oxford, and moreover, we would like to have a place of our own (dont have enough deposit to buy a property outright in Oxford over the next 5 years)
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    House every time....
  • yes my advice would be the same, house if it's suitable. Probably more attractive for resale and without the hassle of service charges etc. Just make sure you put some money aside for upkeep of the property as you won't have a fund like many flat owners do for major repairs
  • andes wrote: »
    Essentially, due to the nature of my job, may be in 5 years down the line, we would like to sell the place to move to another city.
    If you're planning to move on that quickly you may not break even due to the high costs of selling and buying. You won't make much headway into the mortgage after only five years unless you overpay like mad.

    Make a spreadsheet projecting your costs over the full five years and see how much equity and savings you have at the end.
  • r12
    r12 Posts: 15 Forumite
    Hi, I would echo the house every time. I'm not sure how many people have made a return on their shared ownership!! I was one who made a whopping loss! (they tend to be overpriced compared to similar spec in the area). I personally would never buy another shared ownership property. Just make sure you have your eyes wide open to the facts and think about what can happen in the next few years (children, wages, rent etc.) I would alse review peoples reviews on the housing association involved, as they have all the control, so you have to be confident that they can serve you well through the experience. If you are both working, is there any chance that you could live cheaply somewhere and save hard to buy 100% of a property, would save a lot of problems for the future? :)
  • Thanks R12. May be I came across being someone who is looking for a profit. But, the truth is we are looking for a home where we can have good life ,and sort of break even when we are selling the property in say 5 years time. However, I will keep your advise on my mind.
  • If you're planning to move on that quickly you may not break even due to the high costs of selling and buying. You won't make much headway into the mortgage after only five years unless you overpay like mad.

    Make a spreadsheet projecting your costs over the full five years and see how much equity and savings you have at the end.

    How do I do that in a spreadsheet? are there any weblinks or calculators available? :)
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A house every time, a flat is never fully yours.

    A lease to me is the same as renting, you never stop paying.

    Eventually you will be mortgage free with a house.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Aren't shared ownership houses sold on 99 year leases too?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.