Considering buying a £50k house then selling it and buying a £200k house...

rtcw

Long story short is that our situation basically requires us to have a place to live in. We can either rent a house for around 5 years till we can afford to buy one. Or I can buy one right now and save up until I can afford much better house.

If everything goes well, then we should be able to afford a £200k house within 2-3 years but of course, rarely everything goes well. So we're estimating we should be able to afford one in 4 years or so.

We're not able to get mortgage, so that's out of the picture.

A quick look at houses priced at £50k and £200k in my city shows:

50k house: 2 bedroom terraced house in not so nice areas. Although it's safe to live in these areas and we've got no problems with living in these areas.

200k house: 3 bedroom semi detached house in pretty good area.

Any suggestions?

GwylimT

Buying would essentially be a saving scheme where as renting isn't, the main concern I would have, if the area is not very nice how quickly do properties sell? You don't want to be in a situation where you can't sell to them buy a bigger/better area.

alberty

I can't believe you can still buy a 50k houses in the UK! People often offer that much over the average asking price in London, sounds like a bargain. Surprised you cant get a mortgage if you have 50k though.

Pixie5740

I'd check how well £50k properties in these not so good areas sell and who usually buys them. You don't want to be stuck with a turkey in 3 years time when you want to sell it yourself.

davidmcn

If you can afford to rent something significantly better than the 50k houses, I'd do that and buy later, rather than go through the hassle of buying and selling something which you don't particularly enjoy living in (I'm guessing the 50k houses might be the type which are slow to sell).

Anatidaephobia

alberty wrote: »

I can't believe you can still buy a 50k houses in the UK! People often offer that much over the average asking price in London, sounds like a bargain. Surprised you cant get a mortgage if you have 50k though.

There's a certain area where one of my relatives lives where houses are available for around £50K. The area isn't as nice as some but is fine and is safe.

However, you won't make much of a profit on those houses, they WILL sell because they are cheap but only if you're willing to sell it for approximately the same price you bought it. There are identical houses selling for more than double the price only a few mins drive away.

duchy

How much are rents compared to your mortgage repayment ?

Would you consider a house that needed work from maybe an auction and improve it yourself ?

rtcw

alberty wrote: »

I can't believe you can still buy a 50k houses in the UK! People often offer that much over the average asking price in London, sounds like a bargain. Surprised you cant get a mortgage if you have 50k though.

£50k properties are nearly always found in rough areas, something most people automatically ignore when looking for a house.

Pixie5740 wrote: »

I'd check how well £50k properties in these not so good areas sell and who usually buys them. You don't want to be stuck with a turkey in 3 years time when you want to sell it yourself.

How can I check how well properties are selling in these areas?

davidmcn wrote: »

If you can afford to rent something significantly better than the 50k houses, I'd do that and buy later, rather than go through the hassle of buying and selling something which you don't particularly enjoy living in (I'm guessing the 50k houses might be the type which are slow to sell).

Actually, I would much rather to live in "ghetto" areas because I was raised in these areas, and I know these areas like the back of my hand. Also they're cheaper - no point wasting money going for better areas for no reason. They are not so bad once you hang out in these areas long enough.

The only reason why I decided that I want to live in better areas in the future because we may have children and we want to get insurance for things that would be too expensive if we lived in not so nice area.

rtcw

duchy wrote: »

How much are rents compared to your mortgage repayment ?

Would you consider a house that needed work from maybe an auction and improve it yourself ?

I won't be getting mortgage. So it'll have to be cash all in.

If we go for rent route, we're prepared to pay up to £300 in rents per month.

Yes I would consider a house that needs some work. I can do most of work in the house myself.

justjohn

Trouble is some houses just don't sell or take ages to sell. Many flats are only 5-10k cheaper than terraced or same price as a repo/reno.(in my area)
So you have to be careful at the bottom end of market.


i have been looking at an ex-council estate, the properties go on at around 90k some eventually dropping to 60-65. Problem is i may have to sell at some point at 60-65k. So there is no safety net for depreciation/profit. Carp Area often stays a carp area lol

justjohn

rtcw wrote: »

How can I check how well properties are selling in these areas?


.

http://www.zoopla.co.uk/house-prices/