Landlord putting flat up for sale

lazareth1

Hi guys,

My partner and I live in a 2 bedroom 1st floor flat and the landlord has decided to put it up for sale to avoid paying the 3% second home tax because he wants to buy a new house for himself.

Thing is we were already saving up for a our deposit on our first property and we currently have enough for the 10% deposit on this flat so we are considering putting in an offer for this place and hopefully get it a decent price.

Our take on it is that it would be a good initial investment but I think we might struggle to sell it later down the line when we move out later (due to lack of interest of people buying to let out properties now and flats don't tend be bought for reasons other than this). We could let it out I suppose but I don't want to be letting it out forever. The other problem is we would get hit with the 3% tax on a second home if we were to buy our next home and let the flat out.

If we don't buy the flat then we can only hope that the person who does buy this place is planning to do it is going to let it out and have us as the sitting tenant.

Any thoughts? I've had a look of places that have sold on this street and it seems to take at least 6 months for property to sell on this street.

elverson

lazareth1 wrote: »

Our take on it is that it would be a good initial investment but I think we might struggle to sell it later down the line when we move out later (due to lack of interest of people buying to let out properties now and flats don't tend be bought for reasons other than this).

Eh? Loads of people buy one-bedroom flats to live in (particularly FTBs).

agrinnall

lazareth1 wrote: »

Our take on it is that it would be a good initial investment but I think we might struggle to sell it later down the line when we move out later (due to lack of interest of people buying to let out properties now and flats don't tend be bought for reasons other than this).

You're completely wrong about this, many flats are bought by owner occupiers for a variety of reasons, from it being all they can afford to it being all the space that they need.

lazareth1

Hmmm OK maybe it's different down south in big cities? Sorry I forgot to say we're living in Fife, Scotland and it does seem to be that flats here are mostly bought up to let.

Although, I could very well be totally and utterly wrong!

marksoton

Does the place suit your needs for at least the next few years?

If so it's a viable option.

AnotherJoe

[STRIKE]The only issue with one beds is that they tend to get hit hardest in a recession. And if you are struggling to afford it, with a 2 bed theres always a room you can let out to a lodger to help make ends meet (or even airbnb).[/STRIKE]

Other than that, if it meets your needs and is where you'd like to be, go for it.

BTW, does your landlord already own his own residential house or is he renting ?

sheff6107

I lived in a development of flats and about 15% were owner occupied. That's pretty usual.

I'm in Manchester

lazareth1

Thanks for the replies so far guys!

Yes it meets our needs now and if we bought it then it would be better with less to pay per month for accommodation. We could stay here a few years I reckon, we're just concerned that we might not be able to sell it after those few years?

Not keen on lodgers or airbnb'ing TBH.

booksurr

i don't understand what you want to hear from the people on here?

the market for any property will depend on local factors, it seems you reckon that 1 bed flats are not bought by owner occupiers in the part of Scotland where you live so I don't see how you expect people from across the UK to be able to advise you whether buying your flat makes sense given you seen terrified of the idea of selling it later?

given you say you have enough for a 10% deposit already then go and buy the place you always intended to move to and forget about getting this flat "at a decent price". It will never be a "decent price" if you cannot sell it!

lazareth1

booksurr wrote: »

i don't understand what you want to hear from the people on here?

the market for any property will depend on local factors, it seems you reckon that 1 bed flats are not bought by owner occupiers in the part of Scotland where you live so I don't see how you expect people from across the UK to be able to advise you whether buying your flat makes sense given you seen terrified of the idea of selling it later?

given you say you have enough for a 10% deposit already then go and buy the place you always intended to move to and forget about getting this flat "at a decent price". It will never be a "decent price" if you cannot sell it!

I'm just trying to get other people's advice. The problem is that we were looking to save for at least a year longer to get a bigger deposit for something a bit better but the landlord selling is forcing our hand.

Pixie5740

If you are ultimately saving to buy a home larger than the flat then don't buy the flat. Rent somewhere else for another 12 months and continue saving for the home you do want to buy.