House or flat

tim123456789

kyana wrote: »

but if rent is for example £500/month and mortgage the same then she has 'saved' £12,000 by having it now in equity rather than the landlord's pocket.
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If the equity hasn't increased in value he has "saved" absolutely nothing

tim123456789

lincroft1710 wrote: »

This would surely only happen in exceptional circumstances.

I really would like to meet the people who this happens to to find out what it is that they do wrong.

Three rentals in 5 years and it's been me who gave notice every time!

Nynaeve

I would rent somewhere cheaply as possible, throw as much into savings as possible so when you move you'll be in a fantastic position and be able to buy exactly what you want / need.

Buying and selling a property in such a short space of time is a very risky thing to do. What if prices fall so much you can't afford to sell at all? Then what will you do?

GDB2222

If you do buy, then I strongly recommend getting at least 2 bedrooms. This is so much more flexible than a 1-bedder. For example, you can start a family in a 2 bedder, or take in a lodger. If you end up letting it, you can get much more rent if you can get two couples sharing. I'd say that's far more important than whether it's a house or a flat, but I'd definitely prefer a house.

Helen1971

I'd never buy a flat, for the reasons already described by other posters. Your target market is much bigger fro a house when you come to sell. If I was renting, though, I'd probably choose a flat. More secure, easier to manage and generally speaking more bang for your buck.

One of the reasons cited in this thread for buying, rather than renting, is that you'll build up equity in whatever you buy. You might not. What if prices continue to fall, as they easily might? You'll lose some or all of your deposit and might even end up in negative equity and unable to sell. In this case, renting would leave you better off financially and you'll be free to move whenever you want.

So in answer to your questions: yes, it is worth paying more for a house but I don't advise applying for such a high LTV mortgage.

Lizling

Since you're in London (and I'm assuming here that you'd be buying in London), I'd say that 1 bedroom vs 2 bedroom, or reasonable living space vs rabbit hutch is more important than house vs flat when it comes to demand, especially if there's plenty of green space nearby. It isn't as if there's a shortage of demand for flats here.

Ultimately though, I think it's most important to choose whichever you'll most like living in (and paying for) for the next 4 years. No point in buying somewhere that doesn't suit your needs and having to spend money on moving again.

FWIW, I'd probably choose to buy too, in your position. In my borough, house prices went up another 8% over the last year so to start falling suddenly would be quite an unexpected reversal.

Yolina

Lizling wrote: »

Since you're in London (and I'm assuming here that you'd be buying in London), I'd say that 1 bedroom vs 2 bedroom, or reasonable living space vs rabbit hutch is more important than house vs flat when it comes to demand, especially if there's plenty of green space nearby. It isn't as if there's a shortage of demand for flats here.

Ultimately though, I think it's most important to choose whichever you'll most like living in (and paying for) for the next 4 years. No point in buying somewhere that doesn't suit your needs and having to spend money on moving again.

FWIW, I'd probably choose to buy too, in your position. In my borough, house prices went up another 8% over the last year so to start falling suddenly would be quite an unexpected reversal.

^^^ that ^^^

Reselling a flat in London is not really an issue. Plus you have a large international community with people like me (I'm French) who can't understand the British dislike of flats and are happy to live in one by choice. I bought mine 14 years ago in a nice development, I have a south-west facing terrace and allocated parking space - in many parts of London, a house means on-street parking with resident permit - I know which I'd rather have! We also have the freehold and many of my neighbours have been living here at least as long as I have.

Idiophreak

Helen1971 wrote: »

More secure, easier to manage and generally speaking more bang for your buck.

This is interesting, I've found exactly the opposite. I live in a flat because, frankly, I think it's a more efficient use of space. Typically, 2 bed houses I looked at were around 30% smaller in terms of square footage. By the time the stair case, cupboard under the stairs, landing...are all taken out, you end up with *significantly* less space for the same money.

The lease thing's a bit of a concern once it's gets to <100 years, but as long as you pay the right price for the flat in the first place, this shouldn't be much of an issue - and then you just have to cross your fingers that you end up with a decent management company - it's fair to say I've not had great luck in that regard.

FWIW, I'd buy in your position too...I know too many people who've been kicked out of their houses every year on the landlord's whim. You're planning to go up north in a few years now - but who knows where life will take you. Stability, even in the short term, is worth paying for.

helloyouu

I'm also thinking to buy in london, initially I was only considering house. But when you look at prices, house are about 50% more expensive than flat. So for a 150K flat, the equivalent for a house goes over 200K.

That is A LOT of money, and I even see some houses cost twice the price of a flat. So I'm also considering flats, as they are much much cheaper. And 1K leasehold fee isn't going to make any difference

Yolina

Round my bit of London, many flats are more expensive than houses with the same number of bedrooms :rotfl: None of it cheap though, which I why I am glad I bought my place when I did all those years ago.