Buying Liverpool Flat - pull out now?!?

oxymore

Hi, I'm purchasing a 2-bedroom £128K flat on the brim of Liverpool City Centre, near the Royal Hospital, on the very edge of Kensington (supposedly regeneration although I see no difference, by the way it's not actually in Kensington, it's on a main road just outside). I'm a cash buyer so mortgages are not an issue. Just read this thread over here and getting really worried now though:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=44298&hl=liverpool&st=0

I have only just instructed my solicitor today so I guess it's still possible to pull out.

I'm just worried because i'm studying in Liverpool at the moment, so the flat is mainly for convenience to save on rent and travelling time. However, I will only be there for atleast 2 years, possibly more but I wouldnt' be sure of that yet. I guess there is always a good option of renting it out when I'm not there or renting a room to a friend whilst I am there, but according to the thread it seems that there are just so many flats being built in Liverpool at the moment which is outstripping demand.

Also, the service charge is £60/month and ground rent about £150(?). If I could rent the other room out I guess this would be fine. I'm just getting unsure whether this is really a good time to buy before the Capital Of Culture 2008. Thought that would have been a good thing but it seems I might have been wrong looking at all the newbuilds! The price itself is not bad, the flats in the same development have sold for around £130K or over and flats on the other side of the city centre near the Docks are well over £150K for a 2-bedroom and more to include parking. However, the previous owner also paid almost exactly the same price 2 years ago when the apartment blocks were built.

Would anyone please give me some advice? I'm in such a muddle of what to do now about whether I should stop the purchase now, before it's too late! Thanks

PasturesNew

Student Loans stretch a lot further these days ....!!

If you only intend in being in a property for two years - it nearly always makes sense to rent and not to buy.

Then there's the "will prices crash" issue. And the "they're building more" thing.

From what you've said above I'd not advise a friend to proceed.

But you've not said what your other options are. Comparing renting with buying for instance.

And at £128k you'd be paying 1% stamp duty. So there blows another £1300.

It sounds a big financial commitment to me for just 2 years, in a volatile market, where you already have concerns.

BettiePage

Although I am as bearish as they come, I would not take anything HPC said as gospel as they do not allow bulls to post 'bullish' sentiment
(I used to post there many moons ago but did not agree with the moderating of the place, I now post on GHPC which allows both sides to present their arguments- you get a better balance that way).
At least on here you're more likely to get both sides of the story.

oxymore

Well the other option is to stay at home in Cheshire and travel 1hr-2hrs into Liverpool 3x week which is really dire. Renting is also an option. I hear it's around £500/month these days for a 1bed apartment. So for 10 months a year that'd be around £8,000 for 2 years.

I won't be paying stamp duty as it's under the band for a regeneration area apparently..

I wish I'd seen this earlier. Don't think the estate agent is going to look for any flats for me now after this!

oxymore

BettiePage wrote: »

Although I am as bearish as they come, I would not take anything HPC said as gospel as they do not allow bulls to post 'bullish' sentiment
(I used to post there many moons ago but did not agree with the moderating of the place, I now post on GHPC which allows both sides to present their arguments- you get a better balance that way).
At least on here you're more likely to get both sides of the story.

GHPC? I know, there does seem to be a lot more swearing and criticism on HPC than what actual fact I can see!

BettiePage

oxymore wrote: »

GHPC? I know, there does seem to be a lot more swearing and criticism on HPC than what actual fact I can see!

Globalhousepricecrash.

lynzpower

Could you not buy a "normal" ie not newbuild in Liverpool for way less than this.?

I dont know what the good and bad areas are but as you mention kensington

Heres a 2 bed house for 99k http://www.rightmove.co.uk/viewdetails-14144963.rsp?pa_n=1&tr_t=buy

Looking on RM at l7 and 3 miles around theres shedloads of properties in need of total refubs around the 30k mark, and they are 3 bed terraces. So you could get a mate in- and have a guest room? or get 2 mates in for extra money :money:

I wouldnt buy a new build flat personally in this climate.

m00m00

if you have 128k cash, you'd easily make more than 8k in interest in that over 2 years, which negates the rent payments.

floyd

I would be pretty cautious about buying in Kensington full stop. I have lived here for 11 years, my OH is a scouser and Kenny has always been pretty grotty and it is actually getting worse not better. Regeneration programs are all well and good if you can move out or rehabilitate the drug addicts, prostitutes and alcoholics but this is never going to happen. (I work very near the Royal and know the sort of people that frequent that area very well)
I think you would be much better off investing somewhere like Garston or Wavertree which are getting much better. Although it is further out of the city, if you bought a 2 bed terrace you would have a much easier time selling it because it will appeal to a family as well whereas apartments have a pretty limited buyer spectrum.
You just have to look at the apartments on London road that have been part-empty for 3 years and the ones in Everton Valley that just won't shift to know that flats in the more North -end of town are hard to sell at the best of times. Just because its near the city, it doesn't mean people will want to live there.
If you definately want to invest, most areas in South Liverpool are pretty good, even most of Toxteth is Ok these days.

clark.ar

hello..

i'd stay out of kensington.

i know its close to the uni but imo, 128k for a 2bed is far too overpriced for the location and i'd say, you'd struggle to sell on in 2 yrs.. its just not an area people want to live in. the area is a bit too run down and attracts trouble.

if your dead set on liverpool, i'd say theres far better options in allerton/mossley hill/aigburth areas.. its not too far from the city at all, decent links, bars and resterants and some nice parks/open spaces

imo, i'd recommend buying on the wirral.. theres some really decent 2bed flats about for 100-115k.. great transport links, good facilities, nice ppl.. easy to get to the main uni campus by train

trying searching rightmove for wallasey, prenton, oxton.. you might be suprised what you find

TheWaltons_3

I agree with the Wirral. Much nicer place.

If you are prepared to live in Kenny, Oxton would suit you! Too close to Birkenhead for me personally.... but seriously, why buy NOW?

Wallasey - they have restored the old Spillers factory on the Dockside which is another regeneration area, and they are pretty much like the ones opposite in Liverpool.

To get to Uni would take you 15 minutes easily.