Aberdeen Aberdeen Canny kick a Jelly Bean! What about the house prices

usermay2011

Anyone done research into Aberdeen city centre house prices.

Looks like 180,000 for a good 2 bedroom flat with a decent size second bedroom i.e. NOT tiny room.

Do you think it would be wise to purchase a flat in the city centre at this price. I would be living in it and charging 450 a month to one tenant.

The mortgage would be about 140,000 and I'd be putting down a 40,000 deposit. So monthly repayments would be around 750-800 per month. Good deal as Id be renting otherwise and throwing 450 away every month.

What do people think about Aberdeen prices???

Someone mentioned a house would be better value but don't know where they got that from.

Any suggestions very much welcome as I am a first time buyer and scared at the prospect of spending most of my savings on a flat

HAMISH_MCTAVISH

usermay2011 wrote: »

Anyone done research into Aberdeen city centre house prices.

Yes.

Looks like 180,000 for a good 2 bedroom flat with a decent size second bedroom i.e. NOT tiny room.

That depends on your definition of "city centre". If you're talking about the West End or Ferryhill, that's about right.

But if you go a bit further out, like Rosemount, or a half mile down King or Holburn streets, things get cheaper pretty quickly and they're still decent enough places to live and convenient for public transport and parking.

180K is the upper end of 2 bed prices... You're almost into 3 bed territory in a nice area if you can go just a bit further out. The downside is you can't really walk to the city centre bars/pubs etc, but the parking is better, you get an awful lot more for your money and it's a lot quieter/more peaceful even a mile or two away from Union Street.

Do you think it would be wise to purchase a flat in the city centre at this price. I would be living in it and charging 450 a month to one tenant.

Yes, obviously.

A 2 bed in the city centre would rent for between £750 and £1000 a month depending on location and quality. It would be daft to buy a house for someone else if you have the ability to buy one for yourself.

The mortgage would be about 140,000 and I'd be putting down a 40,000 deposit. So monthly repayments would be around 750-800 per month. Good deal as Id be renting otherwise and throwing 450 away every month

.

£450 a month is about what a room in a shared flat will rent for in Aberdeen, but this would usually include bills. A decent 1 bed flat would rent for around £500 to £600 plus bills, and a 2 bed flat in a decent central location more like £750 to £1000 pus bills.

What do people think about Aberdeen prices???

Prices have held up very well, and are now at around the same levels as they were in 2007 for most areas of town, a bit lower in places like Torry, and a fair bit higher in the better bits of the west end, etc.

This is good news for FTB-s as prices haven't really risen very much in the last 5 years. And good news for owners as prices haven't fallen either.

Renters seem to be a bit stuffed though, as rents do keep rising.

Someone mentioned a house would be better value but don't know where they got that from.

They are, if you go out to Danestone or Cove where a 2/3 bed house can be had for the same price as a city centre flat. In the city centre though they're a lot more expensive than flats.

Any suggestions very much welcome as I am a first time buyer and scared at the prospect of spending most of my savings on a flat

No need to be scared of that, every FTB in history has had the same fears. Aberdeen has done very well, and will no doubt continue to do so.

But in my opinion, I think you get more for your money and keep 90% of the convenience if you stay away from a city centre tenement flat and buy one of the 2 or 3 bed maisonettes with a shared garden just a mile or so further out. No factoring charges, free on street parking, and usually quite a nice/spacious converted old granite house/terrace in a decent area.

usermay2011

Thanks for your reply Hamish!

Quick question are you meaning something along the lines of this:

3 w's then -k.aspc.co.uk/cgi-bin/public/LiveProperty/301778?ID=LCBEGJHH#picture

sorry cant post links...

They do look a LOT more cost effective.

You don't think that flats in the city centre on streets just off rosemount place at high prices will hold their value better than these which are a little further out?

And renting is more than that, me and my flat mate pay 425 excluding bills just off Justice Mill Lane and that seems to be a good rate for a decent 2 bed flat in the city centre these days.

missile

I would suggest you could get more for your money, see here > http://www-g.aspc.co.uk/cgi-bin/public/LiveProperty/299211?ID=ACHNJOME#picture

usermay2011

Oh and how do you choose how many years to pay your mortgage over? Just by the amount the repayments are?

missile

Most choose 25 years. If you can pay it off faster you pay less interest. Some mortgages allow you flexibility to overpay, when you are flush.

HAMISH_MCTAVISH

usermay2011 wrote: »

Thanks for your reply Hamish!

Quick question are you meaning something along the lines of this:

https://www.aspc.co.uk/cgi-bin/public/LiveProperty/301778?ID=LCBEGJHH#picture

Yes, that.

Or this.....

3 bedrooms

http://www-r.aspc.co.uk/cgi-bin/public/LiveProperty/294177?ID=FMADPADG#picture

3 bedrooms

http://www-r.aspc.co.uk/cgi-bin/public/LiveProperty/268427?ID=FMADPADG#picture

3 bedrooms and garage...

http://www-r.aspc.co.uk/cgi-bin/public/LiveProperty/299660?ID=FMADPADG#picture

3 bedrooms in listed building....

http://www-r.aspc.co.uk/cgi-bin/public/LiveProperty/300102?ID=FMADPADG#picture

They do look a LOT more cost effective.

They are.

City centre flats are great if you're young, single, and out drinking most nights. But you pay a surprisingly high premium for the privilege of being within walking distance of Union street.

3 bed flats a mile or so further out for pretty much the same cost are a far better bet if you might one day end up more settled down, having friends over more often, or even having a family and kids..... But still want to stay within a few minutes bus or taxi ride from the town centre for now. Best of both worlds really.

You don't think that flats in the city centre on streets just off rosemount place at high prices will hold their value better than these which are a little further out?

Not really.

Find an old granite 3 bedder on a decent street between 175K and 200K and I think you won't go far wrong.

They mostly seem to be selling now for the same prices they were in 2007, which is remarkable.

There are less of them by far than 2 bedders, and they seem to stay in demand a bit more.... My search today showed just 8 properties in that bed/price criteria, and at least one of them is pitched at 20K more than it would have sold for in 07.

Just stay away from newer builds and the obvious worse areas..... Stick to streets that are attractive to professionals. Feel free to PM me for more info once you start looking.

And renting is more than that, me and my flat mate pay 425 excluding bills just off Justice Mill Lane and that seems to be a good rate for a decent 2 bed flat in the city centre these days.

Wow, hadn't realised how much those flat rents had gone up.

Makes buying seem a better option by the day!

HAMISH_MCTAVISH

usermay2011 wrote: »

Oh and how do you choose how many years to pay your mortgage over? Just by the amount the repayments are?

That's a whole other conversation, but in general terms go for 25 years and overpay when you can, look for the cheapest rate you can get so keep the deposit above 20% or so, don't be scared of variable rates for now as base rates look unlikely to rise significantly for years, etc.

usermay2011

Hamish, you mention to stay away from new builds? Why so? Whats so good about listed buildings?

I haven't really taken into account the expenses of buying a house yet, someone mentioned 10,000? If so I would have to reduce my limit quite alot to say 140,000. 175,000 seems a bit out of reach but I guess if I have 40,000 saved I could go for a very small deposit and just accept fairly high interest rates. I can afford to pay 800 per month mortgage.

I dont want all my savings to go into a deposit really as I'd like to buy a few other things as well and have a bit saved up for a rainy day

HAMISH_MCTAVISH

usermay2011 wrote: »

Hamish, you mention to stay away from new builds? Why so? Whats so good about listed buildings?

Hmmm, not sure "listed" buildings are necessarily more inclined to hold their value for flats in this price range (although more so for more expensive places), but "old" as opposed to "newbuild" seems to be more desirable/value retaining in Aberdeen anyway.

In order of priority, I'd be looking for the following:

1. Desirability of Street

2. Size/condition of flat

3. Age of building

So, assume the street is a good/desirable one, the houses are the same size, but one is a newbuild brick/harled construction and the other is a 100 years old granite blocked house, I'd pick the older one every time.

When you look at insurance rebuild valuations, you'll understand why. The old granite place will cost double to rebuild than the newbuild will, as the quality of materials and sturdiness of construction are so much better in the older ones.

Newbuilds tend to be smaller rooms, lower ceilings, thinner walls, smaller gardens, cheaper materials, etc. You get more for your money with an old place, IMO.

I haven't really taken into account the expenses of buying a house yet, someone mentioned 10,000?

Nowhere near.

Legal costs will be a grand or less, including all the offers you put in, plus maybe another 1500 to 3000 or so depending on stamp duty brackets.

If so I would have to reduce my limit quite alot to say 140,000. 175,000 seems a bit out of reach but I guess if I have 40,000 saved I could go for a very small deposit and just accept fairly high interest rates.

Assume a 40K deposit. Plus save another 2-3K for costs in the few months it'll take to find and buy a house.

So if you buy a 160K house, you have plenty for a 25% deposit.

If you buy a 200K house, you have a 20% deposit.

Check rates and availability of both deposit levels online, but suggest dealing with a local bank branch to get your AIP through, as they understand the issues around offering in Scotland being a lot more binding than in England.

I can afford to pay 800 per month mortgage.

Play around with this calculator to see your options....

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

I dont want all my savings to go into a deposit really as I'd like to buy a few other things as well and have a bit saved up for a rainy day

Everyone has their own comfort and risk profile, do what you're comfortable with. But most people do stretch themselves a bit to buy, and worry about nice furniture etc later....

Also worth noting that prices in Aberdeen tend to be seasonal. A bit cheaper in winter, a bit pricier in spring/summer. So while there's not really any such thing as "snapping up a bargain" with Aberdeen houses, you can sometimes save a few grand by buying between Oct and Feb. Although that may have more to do with all the most popular places selling in the peak summer sales season than anything else....

usermay2011

Thanks for all the advice very much appreciated!!!

I am def willing to push a bit more money into it.

Quick question about a 3 bed flat. If I was to get a 3 bed, I could def rent out the 2 rooms however this would mean I'd need an HMO.

Anyone got experience of HMO's in Aberdeen. I have had a very bad experience of HMO in Glasgow where I applied for one but did not get planning permission for the HMO therefore the HMO was not granted, meant a 4 bed flat could only have myself and one other. Big kick in my dad's teeth.

Is Aberdeen as strict? Anything I need to watch out for? Any loopholes such as main door flats that dont need HMO?

Im not sure I'd go for a 3 bed if I'm not going to be able to get an HMO and rent it out.