Please help me decide.

typeractive

Firstly I KNOW that nobody can fully make my decision for me, but I am SOOO stuck I really need some help. Basically I am a FTB looking at 2 properties and can not decide what to go for. They are both 1 bed flats.

1. 1st floor flat in a designated block of only 4 flats. Nobody above, one person below and one person next door. Late 60's/70's build, concrete floor. No Gas, fully electric. Double Glazed. Loft space. The structure is sound. Though it needs modernising: new Kitchen, bathroom (well shower installing), cosmetics of the living room and bedroom. If I bought it, I would also probably get Gas Central heating in. Based in a small, quaint and quiet village, 5 miles from 'home'. Personal parking space. Market at 64000. Belonged to my aunt.

2. 1st floor flat in designated block of 20 flats. Nobody above (due to the design layout). Nobody below as there will be a beauty salon there (on ground floor). one person next door. Brand new development. Solid build (i've been in when renovating and you can't hear the men at work in other rooms/floors). No Gas, fully electric. With radiators. Double glazed. Brand new bathroom features. So no modernising. No need for gas. The kitchen is open planned and built into the living room (which is something that puts me off - and others). Based in the heart of the town. 5 mins walk from 'home', close to all amenities. No definite parking space. Market at 80000.

I am struggling to decide which one to buy. I am pretty sure it is down to these two. They both have positive and negatives. The main difference is size/storage and of course location. The first one is larger with loft space, but need an amount of money spending on it. Getting gas in, and then the kitchen and the bathroom etc. They will otherwise both need furnishings and decorating.

They're the options. One minute I decide on one and then the next I change my mind to the other. The new build won't be ready for around 6months yet. My aunt's is ready now.

My problem is being able to decide. I really don't know what to do. I have spoken to friends but they all have their preferences for their own values - not mine.

I need something with minimal commitment. I want to be able to buy, and if I decide to move away, I want to rent it out. Both offer these, in different ways.

Budget wise, I have around 14k for deposit/ deposit and renovations - depending which one I go for. So I would love to call upon people's experience and knowledge/thoughts.

The costs of doing the 1st flat up could be around:
Getting gas in: 500
Central heating: 2500
Kitchen: 2300
Bathroom: 1700

Total, approx: 7000.

(all are approximate costs. my best friend is a plasterer, and I have a good builder friend - who'd still charge me, but be reliable and a good job. He'd also probably tell me what to do on things and lend me stuff to do it. I have a good corgi registered plumber to help too)

I can get a mortgage of around 75k.
This would make the first flat be, approx: 64k + 7k = 71k. (7k deposit)
The second flat, I could put in an offer of 75k (14k deposit)

I just really don't know what to do. If anyone leaves a vote, could you please leave a reason why too.

I HAVE to decide soon, as the first flat is my aunt's and they need to know. They have been very good to me so far in giving me time.

Thanks ever so much to everyone. The termoil I am going through in just deciding is awful. Others would love to be in position of saving up a deposit to do all this, but I am just hating deciding.

BTman

Buy the older flat and renovate it.

Easy, buy the old one.
Think of it like a car, you can buy an old one, make it nice and it will be worth more, or you can buy the new one and it will depreciate as soon as you drive it off the forecourt.

typeractive

thanks BTman, I like the simple style response . Does property work like cars? Will it depreciate as heavily/quickly? Where I live - about half a mile from the new property, prices have boomed according to this site: Property Predictor whereas the other flat in the quieter area, has had a much slower period of growth.

Is it not really all about the location?

Also, in other terms, will a one bedroom flat really appreciate that much? To be honest I'm not really looking to make money on it, though I am certainly looking to hold my money and not lose. They are both 1 bed flats, how much can they appreciate, really? I'm looking at the flats as an investment to just save money, and have my independence. If I want to move, then I want to be able to rent it out. I could have bought a house for around these prices, but I wanted something smaller to try and manage for my first go. I try to be realistic and don't want to bite off more than I can chew as they say.

Incidentally the old flat has 64 years on the lease
The new one has 99 years on the lease.

Cheers

typeractive

very quickly - i just used the property predictor thingy for the postcode of both flats (bearing in mind the town one ain't fully built yet) and the older flat came out on making more money.

vansboy

Buy the older flat and renovate it.

EASY...the old one!!

You can layout less £$£$ initially & have the benefit of doing it how you like it.

Plus you'll have less chance of hefty service charges, I'd guess, on the old one.

More like living in a house, too, rather than a 'b;ock'. Assuming you prefer this!!

Have a look at my previous, not too different, in reality!!

http://forums.moneysavingexpert.com/showthread.html?t=373691&highlight=vansboy

VB

essexgal

Buy the older flat and renovate it.

Older flat.:D

It's cheaper, it's bigger, it has storage (loft) and car parking space.

Think about when you come to resell - a lot of people might be put off if they think they won't be able to park their car/have visitors over, etc. Whatever you do to the new build - you won't be able to make it bigger;)

Any improvements you make can be done over time and when you can afford them.

Do either of them have garden space or any sort? What are transport links like?

essexgal

havekidsamskint

Buy the older flat and renovate it.

the older one.. i think newer properties dont have such a high scope for incr in value. I sold a new house (2 bed semi) 4 years ago & it has incr in value by abour £30K since we sold it.. we bought an ex council house (2 bed mid terr) and weve just sold it for a profit of £50K. IMO you are paying over the odds for a new house.

also if you look back at older posts, people are having difficulty selling new flats because there are still so many of them being built and some are selling at a loss just to move on.

Finally - go in to the houses and se which one gets your heart beating the fastest - & buy that one....good luck

typeractive

vansboy wrote: »

EASY...the old one!!

You can layout less £$£$ initially & have the benefit of doing it how you like it.

Yeah, I know and agree. I did have plans to go quite hi tech with a media system and projector built into the property however I don't plan on living in there forever, probably short term to be honest. a year or so. So following the real advice of developers, don't get too carried away, and do it up neutral.

Plus you'll have less chance of hefty service charges, I'd guess, on the old one.More like living in a house, too, rather than a 'b;ock'. Assuming you prefer this!!

Yeah - I agree, it is much more like a house, rather than a block as you say.

Thanks for the link. I think however you had a bit more luck in knowing which one you preferred deep down. I really am torn which one I like.

Still I VERY much appreciate your points VB, thanks very much!

essexgal wrote: »

Older flat.:D

It's cheaper, it's bigger, it has storage (loft) and car parking space.

Think about when you come to resell - a lot of people might be put off if they think they won't be able to park their car/have visitors over, etc. Whatever you do to the new build - you won't be able to make it bigger;)

That's a good point. Nobody knows how busy it will get, and the parking spaces could become a problem.

Neither have any gardens, but there is a patch of grass outside the old one . The new onw however, looking out of my window will be onto a flat roof, which they might be changing into a patio area. I know it's certainly going to be cleaned up.

Finally - go in to the houses and se which one gets your heart beating the fastest - & buy that one....good luck

I see them both very differently. I like the idea of renovating the old one. It's the designer in me but I worry about putting money into it and it losing out - n ot being worth the investment.

Thanks guys

chriss1979

Buy the older flat and renovate it.

Go and renovate the old one, it sounds better all round and will be easier to sell in the long run.

Hmm Im getting ideas about doing it now, Ive seen a couple of little flats that could be ideal for it

Ticklemouse

I'd go for the older one too.

However, given that you would renovate the older one, if this flat is only going to be for a couple of years, then which would sell the quickest? Or indeed, at all.

I think I'm in a "loved and lost" situation atm, but there 2 or 3 others around that i like. My favourite house's main drawback is that although lovely and in a nice area, hasn't sold and has been on the market with a couple if not 3 agents. I want to know why it hasn't sold, before i consider buying it - I don't want to be left with a house that takes forever to sell if/when I move on.

space_rider

Buy the older flat and renovate it.

I have to say older one too. I live on new development and they are not selling and they are losing money. You can personalise the old one and the parking space will be an advantage.