We need your help, deliberating this....

metso

I'm trying to make a decision on a flat with my partner and the more we deliberate it, the harder it is to make a decision.
I keep conflicting the issue by hearing the words ringing in my head 'buying a property is most expensive purchase in ones life' and then thinking ' thinking too much prevents you from doing anything!

To help me break it down a bit, i've asked myself & my partner the following questions.

1: Do we like the property: me 7/10, her 8/10

2: Can we afford the property: yes (having added mortgage repayments, council tax, Service charge, utilities, food, transport, & other living costs)

3: Pros & Cons

Pros

Location ( London underground Zone 2)
London (Islington post code)
close to transport (0.4 miles)

Top Floor flat (Better security & nobody above & neighbouring us) (Fourth floor, (counting the street level as 1st floor))

Good sized Balcony offering outdoor space.

Tesco's express close by (Indicator of good & prosperous area)

A new development of Luxury flats completed 2014 & new build of flats opposite road

Comparing the Price of the flat to neighbouring period flats: cheap,
Comparing the Price of the flat to neighbouring similar flats: reasonable

3 years remaining on Building warranty

2005 Brick construction

Ready to move into & live (no need to decorate)

Cons

Above a shop (Currently an A2 Commercial property, previously a A3 (Restaurant) before)
(Harder in the long run if we decide to sell, Potential buyers getting a mortgage)

Next door to a pub, (Currently being refurbished to a gusto pub)

On the high street

Flat is small (580 sq ft) but relative to area

---

The flat below (Also 2 bed without balcony) was listed for sale originally December '12, with price being dropped in June 2013, Currently taken off market and put up for rent.

I spoke to the agent selling the flat below and he advised despite having a lot of interest, could not match the sellers asking price, currently emigrating to Australia, key points being, above a shop and next door to a pub.

Naturally this concerns me because if the flat below can't sell now, how will I be able to sell when we decide to move on?

Were both like this flat mainly because of its location, zone 2 and because of the lifestyle living in a flat like this affords us & its proximity to some really cool trendy parts of Town, Dalston, Stoke Newington, Islington.

So my questions to you, hopefully more experienced in this area than myself and my partner (First time buyers) are:

Are there any other factors were not considering/ asking ourselves.

Could you ask us some questions to help us reason this out.

Thank you, we both very much appreciate your time reading this, your thoughts & your questions.

R_P_W

How much is it?

Personally I wouldn't buy a property which is above a commercial property. You may find it difficult to mortgage and find it difficult to sell in the future.

metso

377k
Average for a period 2 bed in the area 450k
1 bed 370:400k

BitterAndTwisted

Above a shop and next door to a pub? OK-ish for renting, but buying most definitely not.

No. No. And thrice no.

pcgtron

Unless you want to buy it, live in it for a few years and then try and build up another deposit for a larger place whilst then being able to rent out that flat. The rental market in Islington would be great.

metso

pcgtron wrote: »

Unless you want to buy it, live in it for a few years and then try and build up another deposit for a larger place whilst then being able to rent out that flat. The rental market in Islington would be great.

That generally was the idea, that we buy it, live in it for 5 years then look to rent it out, affording my partner & I options later.

Though if we ever did want to sell it, we'll find it hard and all our equity would be tied up...

We're putting down a large deposit so I personally feel we could pay off the mortgage in 5 years.

AlexMac

It sounds OK to me in that you've already done far more research (and soul-searching!) than most people who buy a house (if research is to be believed typically on the basis of a web search, half a dozen views and half an hour looking round the gaff, thereby spending less time buying a house than researching buying a car at one twentieth of the price, or a dishwasher at 1% of the cost!).

You're obviously of the age/lifestyle where a London Zone 2 pad next to/over shops in a noisy, slightly bo-ho area is more important than peace, quiet, access to parks, schools, etc (you see where I'm heading here?). In other words, exactly the sort of considerations that governed the choice of my 1st purchase in Brixton 40 years ago when (as the Caribbean author Austin Clarke said) I was young and free and used to wear silks.

And although renting is the cautious option, now's a fairly good time to buy, with the London market picking up again (if you believe what you read).... and not only is 7/10 and acceptable compromise, but giving in gracefully to Ms 80% (your 8/10 OH) is a good start to a relationship.

I guess the only point is future-proofing; the answers to the questions you don't ask (hinted at in RPW's caution, above)? How long will we be young, urban, uber-chic and funky Islingtonians? Will either of us get broody-breedy? Will we start to yearn for the suburbs or country (or drift off with a younger/older model, and have a forced distress-sale, perish the thought?).

But life's too short for certainty- so go for it - because when the Who sang "hope I die before I get old" in 1965, little did they know the future...

pcgtron

metso wrote: »

That generally was the idea, that we buy it, live in it for 5 years then look to rent it out, affording my partner & I options later.

Though if we ever did want to sell it, we'll find it hard and all our equity would be tied up...

We're putting down a large deposit so I personally feel we could pay off the mortgage in 5 years.

This is exactly what I did. Bought a 1 bed in London, lived in it for 2.5 years, had a change in circumstances (Baby) and bought a house in the countryside. We were lucky enough to have enough money saved to be able to buy our new house without delving into the equity on the flat which is now rented out, whilst we live the countryside dream.

_Andy_

Above a shop and next door to a pub?

Insta-avoid. ugh!

metso

Firstly thank you very much to everyone who has replied.

A lot of good advise there.

Here are my observations:
firstly the property is in London, which tends to defy every sence of logic when buying a house.

If it was anywhere else I wouldn't consider this property but as i'm constantly reminded by anyone older & presumably wiser on account of experience tell me.... its about Location every time

I take it pcgtron has experience of the London market as does AlexMac as they've referred to London in their reply's,

Its still a very hard decision to make!!

abankerbutnotafatcat

It might not be pretty (non period) but it's convenient in location and low on maintenance. This is similar to what I did as a FTB except my compromise was not the shop/pub but ex-LA. (Area was Clapham Junction).

In my case, I wouldn't live there anymore myself (15 years later) but I still own it and there are a stream of 20-something professionals who are happy to rent it from me.

As long as it's safe enough for you to feel comfortable living there and walking around locally then others will too - ticking all the boxes is not a luxury most of us have in London!

Re the shop, I have considered these myself in the 'right areas'. Re the pub, as you're four floors up and will have good (2005 standards) double glazing I would have thought it wouldn't be too much of an issue. However, we once lived three floors over a pub and there was a bit of noise from 'happy' people as they left. Also you need to assess whether there would be an issue entering/leaving your property during pub times - is your entrance near the pub's area?

What kind of pub/ shop are they?

Bottom line - hang about more (23:00+ ish on Fridays/Saturdays) and do as much additional questioning and research that you can.

Good luck!

BTW - when I lived at Angel in the early '90s Dalston would never have been referred to as 'trendy/cool'. It was slummy and edgy! Areas change!