Mine field!

Rowancas

Hi.

I have been living at home to save money and hope to move out in the next few months.

I will have saved enough for a 5% deposit and the mortgage lender has provisionally stated they would be willing to offer a mortgage up to £85,000 if I buy independently.

This realistically makes me two and one bed apartments available to me.

As I imagine I would be starting a family within the next ten years (roughly) I was just wondering if it is still a worthy investment if I aim to sell within ten years? Ie. use the money invested in the flat as a bigger deposit for a bigger property (providing the value does not decrease).

If I did go for this option are one or two beds in demand ie easy to sell? I live in a developing town in rural shropshire - lots of money being invested in property developments.

Or would it be better to just keep hold of money saved and rent?

Thank you for any help! I am so confused about what to do!

blueblazer

Most people would argue that renting when you can buy is a bit silly, especially as the rent is likely to be as high if not more than mortgage payments.

I guess the other option is to stay with parents for another year or so and saved hard so you can afford a house.

In my area, 2 bedroom flats seem to sell quite well to FTB and investors. I'd have thought a one bed limits your selling options a fair bit.

Chanes

2 beds will sell easier than 1 beds.

libf

Prices are likely to rise faster than you can save (Although no guarantees here) so generally it's a good idea to get your foot on the ladder; most people do not buy their 'forever' home and never move again, they start with what they can afford and move when they can afford something more.

Each time you move you incur solicitors costs, pay stamp duty and movers, etc. So generally you don't want to spend a short period of time somewhere. 10 years is not a short period though.

Mortgage rates are at more or less an all time low, so buying and fixing now will likely result in relatively small mortgage payments. It'll still be more expensive than living with parents though (Assuming your parents don't charge you market rates).

G_M

A lot depends on how soon in the next 10 years you anticipate moving/starting family. And how much your other half brings to the table.

Mummyisbeauty

I would probably buy a two bed in these circumstances as I would rather pay my mortgage that someone elses. I'd probably overpay too, if allowed and if no penalties, if only by £50 a month to reduce interest I pay to bank.

cootuk

I would also go for the 2bed over the 1bed, as, if you did have a child it gives you more leeway in that they can have a room straight away even if you didn't move on.

penguingirl

Also with a 2 bed you can get a lodger for the other room