advice needed

kimith84

am currently in a bit of a dilemma,
have seen two properties i'm interested in - feel like have been looking for ages!!
1 is a 2 bed flat in a town centre-ish location, needs quite a bit of work, ie bathroom, kitchen, windows and combi putting in, this is on the market at 70k - others in better condition have been selling for 85k in same area.
the 2nd property is a 2 bed terraced house, repossesion which needs little work done, in a more out of town area in a quiet cul-de-sac, this is on market for 80k.
to get a mortgage at 80k would be pushing my budget to the limit, however the 70k one would need money spent on it straight away to do it up.
What in your opinions would be the best move - im not experienced at all in property matters and dont wanna screw up big time!

dolce_vita

Given those choices, I would go for the house every time.

It will hold its value better and will be easier to sell, given the glut of flats.

I trust you have decent deposit?

kimith84

yeah - gonna have about a 14k deposit, but it means borrowing a little bit extra off my parents than i would need too for the 70k one!

ono_no_komachi

Make a list of pros and cons of each property. That should help you focus on what you like about each one (you should also weight each factor because some may be more important to you than others, e.g. location may be more important than having a garden, for example.)

If nothing else this may make you realise that you have a 'gut feeling' for one of them which makes you want to disregard your list!

If it were me, I would be weighing up the fact that the work on the 'project' could easily add up to 10K or more, and that you would need to find cash to fund the work, and the nuisance and time factor of having work done on the place; versus the 'move straight in' qualities of the other property.

Do I understand from your reference to getting a mortgage for 80K that it will be a 100% mortgage? If so, how might you fund the work that needs doing on the 'project'? If it's a case of doing bits you can afford as and when (but needing money spent on it straight away seems to not allow this as an option) then clearly not stretching yourself, particularly with IRs rising as they are, might be the best plan.

I realise I have not given you a clear 'this one would be best' but my intention was to may point up some things you might want to be considering.

EDIT: Sorry, just seen your post about deposit. Would you then be borrowing from parents to fund work on the 70K property?

Mrs_Thrify

Hi, lots of pro's and cons on flat v house. Location - stairs - garden - private drive/garage. My faverote! witch has the biggest lounge and bedrooms?

Best Wishes....Julie

kimith84

have got 7k deposit myself - but on 80k mortage would need a little bit more to lower paymens - hence parents steppin in.
if i got the 70k one - it would be a case of lots of overtime for a few moths to fund the work.
thanks for your advice, am goin to sit down with a list now!