Buying an apartment - downside risk?

bouicca21

How do you find out how many flats in a block are rented?

yatinsardana

ognum wrote: »

Read the lease of the property you offer on carefully! I hate to suggest that because you are 24 you should ask someone with more experience to read it as well but it depends on how much you understand of leases.

Be prepared to withdraw if there are clauses in the lease you do not like or understand.

I've started reading a little on leases but I need to know a lot more at the moment about them. It will be a bit difficult to find someone experienced to go with me.. I just usually read a lot about things, read this forum and clarify any doubts I have on here - that's essentially the way I learn about everything to do with "saving money" and "making big money decisions" as I don't really have anyone experienced who can help me in person.

Thanks for your advice, I will definitely be reading up on leases.

Mr_F_Dorsetty

yatinsardana wrote: »

How do I find out about these auctions and where they are?

The easiest method is to go and talk to some local estate agents, most likely one of them will be the auctioneer for the area or will know who is.

Yes, there are all sorts of auctions but my advice is to stick to the smaller local ones because then you can see the properties when the viewing time is offered. Also you tend not to get national players there as you do with the huge auctions which do happen. Those big players can sometimes cause the prices to rise as in their business plan paying more than a local makes sense.

Have fun... and don't scratch your nose at an auction

dimbo61

If you want to live in Birmingham city centre and cannot afford a house with a garden + parking then the next best is a two bed two bathroom flat.
Master with ensuite and second bedroom of good size with main bathroom.
You can then get a lodger to help pay the mortgage and other bills IF YOU WANT !
Up to you if you want the ensuite bedroom or other bedroom and main bathroom.
Shower person or bath ?
Government rent a room £4250 Tax free :-)
Easier to rent out two bed flats ( if lease allows this )
Great program about London and the rest
House prices are going up big style in London but little increase in the rest of the country.
If you buy at £120,000 the property might increase to £125,000 but not much more think stamp duty.
Are there new developments nearby ? Lots of empty flats or dozens up for sale, local employment or high unemployment ?
Lots of companies who have staff from all over the world stay weeks/months.
Students or young professionals nearby bars, shops, nightlife.
Check out SINK fund if flats need major work.

Prothet_of_Doom

In terms of future value, I think you need to look at that in the context of

New Builds always loose a bit in the first few years because they are not new. (£170K would have been £160K if house prices had not been moving up or down)
There was a price bubble. (£170K really was OTT for central Brum, and maybe should have been £150K)
There was over supply (This was masked by the bubble)
It popped. (Oversupply, plus overprice, plus no buyers = £90K)
People have saved a deposit, are looking at the rent and thinking this is dead money, and prices have risen, (£120K being the current going rate.

Nobody can predict where prices will go in the next 5 years, but history would say up, demand vs supply would say up, but in 20 years, I'd say it's going to have gone up, you will have paid for it and you'll be rent and mortgage free. Whereas rent will have risen.


Personally I'd be looking at 3 bed semi's in Rednal, instead (because that's what I bought in 1989, and enjoyed for 5 years)

On the downside, maintenance, ground rent, service charges which houses don't suffer from so much.