House or flat?

bouicca21

Don't over borrow? I take it that Thrugelmir doesn't live in London, cos borrowing to the hilt is the only way to get started for most people.

Innys1

Overborrowing in London, or anywhere else for that matter, is very risky. If you have to overborrow to live in London, two alternatives:

1) Get a better paying job; or
2) Live somewhere cheaper.

Overborrowing is especially a bad idea now when interest rates are likely to go only one way in the next couple of years.

PasturesNew

I'd say a house is always better than a flat, but with your description I'd hesitate as the houses sound like they have the potential to be [a] a bit grim in areas that might slide into hell.

I'd therefore look a bit further out, explore new areas.

Waterlily24

I would say a house too but don't have any experience of living in a flat. Our first house was a semi in North East Kent - very expensive now and the rest have all been detached in different parts of the country.

ilikecookies

Tough one!

I'd always prefers a house but personally I'd go for the flat because of the better area/location. You'll find it much easier to sell in the future (which will allow you to "upgrade" to a house in a better area at a later date) and presumably the quality of life will be better in the interim.

As someone else said there's definitely truth in the addage that it's better to have the worst house on the best street than the best house in the worst street.

Thrugelmir

bouicca21 wrote: »

Don't over borrow? I take it that Thrugelmir doesn't live in London, cos borrowing to the hilt is the only way to get started for most people.

When was London cheap? My family home was Surrey. I moved out to Biggin Hill to buy my first home and that was many years ago. Also I was paying 14% interest shortly after moving in. Older generations experienced similar issues. Nothing new.

Red-Squirrel_2

Thrugelmir wrote: »

Started many years with a flat. No regrets. Don't over borrow to buy your first property. Then saving to move is far easier.

I have to agree with this.

I bought a flat because it was all I could afford, no choice. The increase in value meant that when I came to sell it I could put down a 25% deposit on a house in a nice area. There's absolutely no way I'd have been in that position if I'd just waited and continued to save.

Yes, its a gamble because there are no guarantees that prices will rise, but in the long term, they generally do.

I had no major issues with flat living either.

bouicca21

Borrowing to the hilt was what I had to do 30 odd years ago and then interest rates hit 15% under Thatcher... As long as you are in for the long haul the ups and downs in the property market eventually work out.

Biggin Hill is still (comparatively) cheap, but I wouldn't want to live there.

Waterlily24

I lived in Biggin Hill till I got married, I never found it that bad. I moved to West Wickham when we got married, it was more expensive than Biggin Hill but transport was so much better. My sister still lives in Biggin Hill.

bouicca21

Yep it's the transport that makes Biggin Hill difficult - you'd have to run a car - but presumably that is what also makes it cheap.