City Centre Apartments

EGGP1878

Hi,

I'm a FTB looking to buy an apartment in the Albert Dock in Liverpool. Pretty much everyone who I've spoken to about it has advised me against it. There not cheap, circa £200k to get something decent.

Has anybody had any experience of buying an apartment in Liverpool city centre? Or even any other city centre for that matter. The main concern I have is the property losing value. (I know crystal ball etc). The one we have seen is a new build on the water front, just about to apply for a mortgage on the newbuy scheme.

I don't know whether the scare factor of buying a city centre apartment is something everyone has just sort of jumped on the band wagon with or whether it's something to genuinely be concerned over. Any input would be welcome.

lurkylurky

I don't know about the financials but I have friends in their early 50's who have looked at some city centre apartments in Nottingham. They were out one night in a bar close to an apartment they liked. They decided that although the apartment they liked was lovely, and they like going for an occasional night out, with all the drunks and youngsters (and drunken youngsters) roaming the streets city centre living isn't for them.

I also have a relative who's been renting off a friend in Nottingham city centre for 3 years and he loves it. He walks to work, doesn't need to run a car or pay for taxis home.

Horses for courses I suppose.

mchale

Hi, check the service charge's

EGGP1878

Thanks for the replies. Were a young couple 22/21 and we like the convenience of it, especially as my girlfriend works about a 5 minute walk away. The service charge is quite expensive, around £190 a month, but we would probably still save money by only having one car to be honest.

Still a little unsure about it, purely because of all the 'why don't you just buy a house' comments I've had!

freeisgood

The service charge is only going to go up....and up.

bitsandpieces

Are you buying the place as a newbuild with a 5% deposit, then? If so, bear in mind that newbuilds are often priced slightly more than you'd pay for a similar 'used' property (and thus slightly more than you'd get if you resold it) so you could end up with little or no equity in the place from the moment you buy. If you and your girlfriend are likely to stay there for decades and have stable jobs which comfortably cover mortgage and service charge payments, that's not such a concern. If you may need to move in the short- or medium-term, though, even a small fall in house prices could leave you in negative equity and therefore stuck with the place :eek: Prices may rise, of course - I don't have a crystal ball - but this is a risk worth considering.

Some other things to think about are:
- Do you need to live bang in the centre? I've preferred places which are a 10mins or so bike ride away from the city centre - quiter, cheaper, but still easy access to the centre.
- That service charge sounds high. What do you get for it? As has been said, it may also rise :eek:
- How long would the property fit your needs for? Might you be wanting more space/a garden/somewhere quieter within a couple of years?
- Can you speak to people who already live in the block? They could tell you a bit about how it is to live there (build quality, noise etc.)
- Worth speaking to a solicitor about how to arrange ownership with your girlfriend. Hopefully you'll be together for many decades, of course, but you'll need to agree what happens if you split.
- Do you have a sense of the market in Liverpool centre? I know in some cities there were a lot of places went up which meant that prices went down faster when the market slowed...I don't know what things are like in Liverpool, though.

EGGP1878

Yes new build with a 5% deposit (if we do indeed buy it). No we won't be in the apartment for decades as eventually we will want more space, but for right now it's ideal for us, we have no children and like to go out for meals etc and love Liverpool city centre.

The reason were going for somewhere 'bang' in the city centre is because we want a view of the waterfront. Me and my girlfriend (well fianc! to be more specific) have been going out over 5 years, some people get married and divorced in that time, so I wouldn't read too much into the fact were a 'young couple'.

The mortgage & service charge come to roughly 30% of our wages combined, so we should be OK on that front as long as circumstances don't drastically change.

dimbo61

Liverpool is a great city really buzzin with great nightlife, bars, clubs and restraunts.
The old Albert Dock buildings look great and a friend lived in a rented 3 bed flat for 2 years ( students) and loved it.
The old docks are full of museums, bars, restaurants and tourists but it does get quieter at night as long as you are not above the 3/4am disco!
Newbuild/New buy with 5% deposit could well mean selling at a loss in 3/5 years as lots of new flats going up in Liverpool so why buy second hand?
The flat itself ! Great when you see the furnished show flat with balcony and views of the docks but What do you get ? Free allocated parking ? Two bedrooms ? Two bathrooms so you can rent out one if you need too ! What size bedrooms ? Storage space ? Views ?
Having a fully equipped gym in the building is only good if you go to the gym 3/4 times a week.
Service/Management costs of £2400 every year for what ? Lifts, security, cleaning of corridors, will the other flats all go to investors for renting to groups of students ! Or young professionals or unemployed ?

dimbo61

The £190k mortgage will cost what £1100/1200 a month so why not rent a flat on the waterfront in the Albert docks for 6/12 months first and see if you like city centre living first.
Find out what you need ie room sizes, parking, noisy, location, etc
My son LJMU student has lived in the city centre for over 2 years, now in a 4 bed flat on Dale street and loves it.

SailorSam

When the time comes to sell, flats always seem harder to get rid of than a house. Albert Dock is a lovely place but how much extra are you paying for the name when probably less than 10mins walk away you could buy in Queens Dock for half the price. There must be plenty of other examples.http://www.zoopla.co.uk/for-sale/details/29972750

bitsandpieces

Fair enough. Think about how long you are likely to want to stay in the property, then - buying and selling costs have more have an impact if you're not staying there that long, and you're also more vulnerable to short-term shifts in the property market, any initial overpricing, etc. Would you be able to deal with significant price falls after you buy?

If you're very keen on a waterfront view and can afford it, fair enough. I'd think about how much you're paying for the view and the 'prestigious' location and whether it comes with any significant downsides (e.g. some city waterfronts can be very noisy at night, although I don't know Liverpool) - but if you feel this is worth the cost, that's your decision of course! I'd seriously consider renting in the area for 6 months if you haven't already, but that depends partly on what you think will happy with property prices.

EGGP1878 wrote: »

Me and my girlfriend (well fianc! to be more specific) have been going out over 5 years, some people get married and divorced in that time, so I wouldn't read too much into the fact were a 'young couple'.

I wasn't - I'd have said the same if you were in your 60s! Sadly, we don't have an effective system of something like 'common law marriage' here so - until you are married or the government passes better laws - this is something that's worth bearing in mind.