FTB - house or flat? Opinions please!

princeofpounds

Lots of people are going to recommend the house because it's easier just to say buy the better property when you don't have to pay the extra.

No doubt having a garden and not having to move so soon is better. You probably will want to move to a place with outside space when the child is 4-5. Although lots of societies quite happily raise families in flats most British people don't want to use public outdoor space all the time.

The truth is that the costs of moving at that point are going to be notable but not huge; you pay little stamp duty in your price range. Solicitor and mortgage fees might cost a couple of thousand. Amortise that over 5years and it's not a huge burden.

But then the costs of the house above the flat are not a huge leap either. At 3% mortgage rate we are talking 900 quid a year, probably similar ballpark to saving for the move from a flat. Maybe there will be a small council tax difference too, but then flat maintenance costs can be more of a hassle depending on how it is all arranged.

So the house probably stacks up financially if it does not involve other compromises like location.

To be honest, probably the thing for you to look out for whichever you choose is to put yourself in a situation where you have a 20% deposit, or you can refinance as soon as you get to 20% equity. You'll get a significantly cheaper mortgage on the other 80%

penguine

Another advantage to the house, if you buy a 3 bed you may be able to get in a lodger or two before you're ready to have children, which will help towards your mortgage.

Snakey

I don't see the problem with buying the flat. You already know who your neighbours are and how well the block is maintained, as part of the purchase your solicitor will make enquiries about past years' service charges and whether any significant expenditure is due in the next few years, and will also advise you about lease length and all that stuff.

You don't have children right now today, and they aren't born on tricycles anyway - it's going to be a good few years, perhaps 7 or 8, before it matters whether there's a place where they can play outside while you're getting the tea ready.

The main issue, if he's selling to you off-market, is to make sure that you are not overpaying - and, as someone else has said, to make sure you're doing this because it's a good decision and not because you can't be bothered to pack and unpack.

Go and look at some other flats, and check recent selling prices of flats in your block/area if there are any.

Why not go and look at some houses as well? You are genuine buyers, after all, so don't feel embarrassed or like you're wasting anybody's time.

You'll have a much better feel for what you both want, and don't want, once it's come off a list of words on paper and become real properties. You might find that once you've seen a few places with gardens you realise you really want one, alternatively you might find that once you've looked up what the commute would be like from the suburbs you'd prefer to stay central (or whatever your situations may be).

I wouldn't underestimate the advantage of being able to overpay on the mortgage and/or add to your savings, rather than having to service a bigger mortgage (which gives you much less flexibility). Of course you need to make sure you do a full comparison - not only mortgage payments but also service charge, council tax, water rates etc, anything that might be different in a different property.

Exciting times! Get out there and see a few places, you'll have fun whatever you decide.

Fraise

Fudgefund wrote: »

Hi MSE


I'm posting this question on here because I could do with some candid advice. I've been flipping this question over and over in my mind and with friends for weeks and I'm still no closer to a decision.


The situation is this; about a month ago I was given 2 month's notice on my rental flat I share with my boyfriend as my landlord wants to sell. I spent a long time getting debt free and had just started saving for a deposit, so this was a blow. My Mum then out of the blue offered to give me £25,000 for a deposit, and my boyfriend's parents offered £5000 for legal fees etc.


The flat we're in (which we've been happy in) is going on the market for around £130,000, so we would need to borrow £105,000 if we were to buy it. Because of the shock of being given notice to vacate I feel as though the move is a bit rushed, although there are advantages in buying direct from our landlord, and he has said we can just buy the existing furniture from him, cut out agents fees etc.


I am 31, so it's possible I will want to start a family in the next few years, and a lot of people have told me to buy a house to grow into, and to stretch ourselves to £160,000ish, have a higher mortgage and buy somewhere to stay for at least 10 years.


If you're still with me, the question is this:


Is it a bad idea to buy the flat we're in (2 bed, so room for small feet for a few years if it happened), and look to sell in 5 years time having comfortably overpaid the mortgage? Am I a bit too old for this?


Or should we buy a three bed semi in a less desirable (but by no means bad) area and slowly furnish/do up whilst paying out approximately 25% of our income on our mortgage (much less room for overpaying). To do this we would need to rent for another 6 months whilst finding somewhere and I am also concerned of the consequences if there was a rates hike.


Any thoughts gratefully received.

What would be the difference between your mortgage payments on this flat you're in now, and the rent you're currently paying? It could be your mortgage will be less....also, in five years from now you may have saved enough deposit for a bigger home/house and possibly be able to rent this one out. I'd certainly consider that option.

Regarding the maintenance charges, it's swings and roundabouts. If you have a rubbish managing agent and they overcharge you can take them to the First Tier Trubunal to get the fees reduced, and the FTT will always work in the lessees favour if the agent is overcharging and/or not maintaining it properly. In fact, as its a house, you can opt to self manage, providing the co-shareholders agree, and get rid of the agent altogether.

Maintenance fees can seem a pain, but they're a necessary evil if major works especially need doing. Remember, if you have your own house you're solely responsible for all repairs, and although you can leave them if you can't afford to repair them, it means your property could become in a very bad state and end up costing you much more in the long run.

Maintenance fees that are shared, and shared fairly, takes a lot of stress away, but I would never employ a managing agent to care for just a house. If it's a large estate you need an agent, but certainly not for a house with just a few flats.

Managing agents who take on houses should be treated with caution. They're getting money for old rope...all they do is phone a plumber or roofer on your behalf, and often ones who they're friendly with and make extra money on top! Get rid.

bouicca21

Tbh I think a lot depends on what your flat is like. Personally I think with a child you'd want easy access to a garden far sooner than posters above have suggested. Though where I am currently living I note that the parents of young children don't use the (splendid) communal garden and take the children to local parks instead.

You also need ground floor storage space for a buggy. In my previous rental leaving a buggy downstairs was forbidden; now that I have moved, several of the upstairs residents leave buggies (and scooters etc)in the communal hall in a space under the stairs.

I never thought I'd say it but flat living suits me. I don't have to worry about maintenance, and I have been fortunate enough to find a spacious flat in a purpose built block with minimal noise problems. But then my children have long flown the nest.

So I don't think you should be thinking of a straight choice between your current rental and a house. Though having been in a rental up for sale I know how tempting it is to go for the easy option of buying it yourself. I'm glad I didnt. I think you need to be looking around at everything that is available in your price bracket, thinking hard about location, and factoring in a potential mortgage rate rise.

chazsucks

You've had some great advice on this thread already,

I agree that a house would be the better option with more possibilities for space in the future.

When I had my son we were renting a 2 bed terrace house, my friend was renting a flat and had her daughter not long after.

I loved being able to walk in the door and not have to go upstairs till bed time, even when we didn't feel like going out we could still take him in the garden in his buggy to enjoy the fresh air, or set out a play mat on the grass.

My friend had a flat on the 3rd floor and not long after she had her daughter the lift broke and didn't get fixed for months, there was nowhere to keep the buggy downstairs so she had to take her daughter out, carry her and lug the buggy up 3 flights of stairs just to get home.

I was also glad of the storage space, having a baby CAN come with lots of paraphernalia and houses tend to have better storage spaces, or it's easier to create them - such as under the stairs, in the loft or under the eaves. If you have a garden then you may also have space for a shed or outdoor storage space or could even create another room like adding a summerhouse or home office.

Also with flats you have to think of the lease, ground rent etc. I was looking at a flat for sale and although the lease had a long time left the cost to extend it was £70k... so if we wanted to stay there a long time or sold in the future that would definitely put people off buying. I also read a post on here the other day somewhere where someones maintenance went from around £90 to over £200 per month (I think!)

Errata

The benefit of a house is that you don't have neighbours from hell living below or above you.

Fraise

Errata wrote: »

The benefit of a house is that you don't have neighbours from hell living below or above you.

You can have them living next door to you though, so unless you live in a detached property you'll always have neighbours either both sides, one side, below or above. It isn't just where they're situated,neither...LYOU can have neighbours from hell living across the road for you...land if they have their own house and choose to use it as an almost unlicensed club with loud music blaring day and night, cars/motorbikes revving, hanging outside in the street in a hit summers evening drinking,ms hosting and causing noise...it can be In fact, you have more power to make your neighbours time the line if you share the property,mthats you do if someone winds the house opposite if next door.

Millions of people in London own flats, and in reality, it's only a small proration who have anti social neighbours,

Fraise

bouicca21 wrote: »

Tbh I think a lot depends on what your flat is like. Personally I think with a child you'd want easy access to a garden far sooner than posters above have suggested. Though where I am currently living I note that the parents of young children don't use the (splendid) communal garden and take the children to local parks instead.

You also need ground floor storage space for a buggy. In my previous rental leaving a buggy downstairs was forbidden; now that I have moved, several of the upstairs residents leave buggies (and scooters etc)in the communal hall in a space under the stairs.

I never thought I'd say it but flat living suits me. I don't have to worry about maintenance, and I have been fortunate enough to find a spacious flat in a purpose built block with minimal noise problems. But then my children have long flown the nest.

So I don't think you should be thinking of a straight choice between your current rental and a house. Though having been in a rental up for sale I know how tempting it is to go for the easy option of buying it yourself. I'm glad I didnt. I think you need to be looking around at everything that is available in your price bracket, thinking hard about location, and factoring in a potential mortgage rate rise.

I agree with much of what you say, but there are some beautiful garden flats around,some of which are almost like a house. They're hard to come by though, and fetch a premium as they're usually period properties.

If buying a flat you should try to buy one with a 999 year lease, which is as good as freehold almost. Also, share if freehold via a company set up in which all flat owners own an equal share of the freehold via the company makes your position very secure.

Never ever buy a property with a short lease...i think a minimum lease should be at least 125 years unless you want to spend thousands renewing it. Shame not all leases are 999 years long

japmis

If you can afford the house, go for the house.