Torn between two properties

kilby_007

Just sounding out 2 options for us at the moment and the pros/cons. Won't be offended if it's too long to read but if anyone wants to add their 2p worth I'm all ears :-)


1) Buy a 200 year old 3 bed detached (0.26 acre plot & 1350 SqFt floor space) with stables, double garage and summer house -£305K.


Pros:-

• I would have a workshop, storage space and summerhouse ready to go.
• We can section off part of the plot for an allotment and still have a large garden.
• Curb appeal.
• Ready to move into, although ultimately there's a lot of things we'd want to do to it.

Cons:-

• It will cost half of my monthly income on the mortgage alone.
• On a fairly busy road (A-road) between two towns.
• The mortgage will take 17 years to pay off.
• The garden could be difficult to maintain (lots of grass cutting).
• There was flooding locally (about 50 metres up the road) 10 years ago from ground water.
• There was a recent burst water main in the street and the property has had to have the DPC redone as a result of this. Unsure if there was any other damage at this stage.
• There is a public footpath running down the side of the house and a very long brick wall running the full length of the plot.
• Old property = more costly to maintain / less energy efficient.
• We would have to add in a fourth bedroom at some point.
• It would be difficult to save at the same rate we have been doing whilst renting and life's luxuries would have to be scaled right back.

2) Buy an 80 year old 4-bed extended semi (0.12 acre plot & 1200 SqFt Floor Space) -£190K


Pros:-

• We could afford a 30% deposit with 20K left over to refurbish.
• We could be borrowing less than half as much, so we could pay the mortgage off in 10 years.
• Workshop/storage/allotment would be possible, but on a much smaller scale and wouldn't leave much garden. Also have to factor in cost.
• 4th bedroom already there.
• Village is slightly better - more shops.

Cons:-

• Needs everything ripping out (inc. new kitchen, bathroom, carpets, etc) - you could see this as a positive as it will allow us to do all of the work (which I can do most of myself) but our 20K will be eaten up fairly quickly.
• Bad distribution of floor space (downstairs bathroom, car port under 4th bedroom, small living room/kitchen, no dining room).
• Couldn't move in straight away - would have to continue renting for a few months whilst we refurbish.

Ultimately in 2-3 years we could have the second property exactly as we want it with a downstairs extension for total cost of 260K + mortgage interest.
The first property would take about 5-6 years before we could think about adding the fourth bedroom and we'd be looking at a total cost around 370K + mortgage interest.

glosoli

Don't have much to add but the fact the £305,000 house would put strain in yor finances when interest rates are as low as they are going to go would make me wonder if you could really afford it?

kilby_007

glosoli wrote: »

Don't have much to add but the fact the £305,000 house would put strain in yor finances when interest rates are as low as they are going to go would make me wonder if you could really afford it?

I have considered that as a factor, but we would be looking at a 5 year fix for either property and I do save quite a bit of money in company shares, so if it looked like interest rates were heading that way then the 4th bedroom extension at year 5/6 would be put on hold to give us extra funds towards mortgage payment. The 4th bedroom is a guest bedroom for the MIL so although we do need it for when she child minds for us a few days a month, it wouldn't be the end of the world if we couldn't do it.

AdrianC

kilby_007 wrote: »

Cons:-

• It will cost half of my monthly income on the mortgage alone.

This makes me wonder if you'll even be able to get a mortgage for that much.

As a gut response, though, if you're having to think that hard about which of the two, then there's a heck of a difference in price to consider... So that, for me, would say that the more expensive is not special enough to be worth that much extra.

If it was a case of "We adore this one, but aren't sure if we can afford it", then it'd be a different situation.

kilby_007

AdrianC wrote: »

[/LIST]
This makes me wonder if you'll even be able to get a mortgage for that much.

As a gut response, though, if you're having to think that hard about which of the two, then there's a heck of a difference in price to consider... So that, for me, would say that the more expensive is not special enough to be worth that much extra.

If it was a case of "We adore this one, but aren't sure if we can afford it", then it'd be a different situation.

Using the mortgage calculators and our salaries, we can "afford" to borrow a heck of a lot more than we need to. The affordability is not an issue as far as the mortgage company is concerned, but as I don't want to be lumped with a 25 year mortgage, I chose to bring the term down to about 17 years (we would actually take a 25 year mortgage and overpay each month, to give us some flexibility) so the affordability constraints are self inflicted I guess, not as a result of our incomes being tight. I just don't want to still be paying off my mortgage when I'm in my 50's.

Mojisola

Keep looking for another property that will suit you better?

kilby_007

Mojisola wrote: »

Keep looking for another property that will suit you better?

Easier said than done! We've been looking for over a year! We want something with a large plot which is getting more and more scarce as builders weigh in and buy pieces of land off people in the old villages we're looking at. The new builds are like shoe boxes with a veranda and anything near to the local towns are 400K+ if they come with even a small garden.

lincroft1710

It's Lincroft negativity time!

Neither really suits your needs, the 4 bed house is actually too small and extending it would take away some of the garden.

I think the 3 bed could be a money pit, a long brick wall can be very costly to maintain/repair. You will be spending more money on it by your admission. Public FP alongside, flooding (past and future risk) and on busy A road are no-noes in my book, certainly a combination of all 3.

Sadly I think your plight is the same as many couples on "Location x 3" you cannot find the house you really want at your price.

If you are determined that you will buy one of these two, pick the one you both feel happier in and which suits your needs best

Final thought, if you buy 3 bed house and MIL only comes occasionally why not buy a large touring caravan with good insulation and heating and park it close to the nouse

kilby_007

lincroft1710 wrote: »

It's Lincroft negativity time!

Neither really suits your needs, the 4 bed house is actually too small and extending it would take away some of the garden.

Yes, either property is a compromise.

I think the 3 bed could be a money pit, a long brick wall can be very costly to maintain/repair.

I agree.

Public FP alongside, flooding (past and future risk) and on busy A road are no-noes in my book, certainly a combination of all 3.

Again, all compromises. The flood was ground water (not under threat from watercourses) and there's little future risk of flooding due to a culvert being installed to take away water in future heavy downpours, so we're not too worried about that. The main road is a slight issue, but we'd live mainly at the back of the house, so wouldn't be a showstopper. The long wall is one of those that could be very costly to replace but it could just as easily stand another 100 years. It's an unknown.

Sadly I think your plight is the same as many couples on "Location x 3" you cannot find the house you really want at your price.

Somewhat agree, somewhat disagree. I think we're just very fussy. There's a property up the road on a big plot with everything done (relatively new, probably 1930's) for 350K and it's been on the market for 6 months but it's TOO big (6 bedrooms). I just think there's a lack of property to choose from at present.

Final thought, if you buy 3 bed house and MIL only comes occasionally why not buy a large touring caravan with good insulation and heating and park it close to the nouse

Or park it a few miles away?

Jackieboy

kilby_007 wrote: »

Just sounding out 2 options for us at the moment and the pros/cons. Won't be offended if it's too long to read but if anyone wants to add their 2p worth I'm all ears :-)


1) Buy a 200 year old 3 bed detached (0.26 acre plot & 1350 SqFt floor space) with stables, double garage and summer house -£305K.


Pros:-

• I would have a workshop, storage space and summerhouse ready to go.
• We can section off part of the plot for an allotment and still have a large garden.
• Curb appeal.
• Ready to move into, although ultimately there's a lot of things we'd want to do to it.

Cons:-

• It will cost half of my monthly income on the mortgage alone.
• On a fairly busy road (A-road) between two towns.
• The mortgage will take 17 years to pay off.
• The garden could be difficult to maintain (lots of grass cutting).
• There was flooding locally (about 50 metres up the road) 10 years ago from ground water.
• There was a recent burst water main in the street and the property has had to have the DPC redone as a result of this. Unsure if there was any other damage at this stage.
• There is a public footpath running down the side of the house and a very long brick wall running the full length of the plot.
• Old property = more costly to maintain / less energy efficient.
• We would have to add in a fourth bedroom at some point.
• It would be difficult to save at the same rate we have been doing whilst renting and life's luxuries would have to be scaled right back.

2) Buy an 80 year old 4-bed extended semi (0.12 acre plot & 1200 SqFt Floor Space) -£190K


Pros:-

• We could afford a 30% deposit with 20K left over to refurbish.
• We could be borrowing less than half as much, so we could pay the mortgage off in 10 years.
• Workshop/storage/allotment would be possible, but on a much smaller scale and wouldn't leave much garden. Also have to factor in cost.
• 4th bedroom already there.
• Village is slightly better - more shops.

Cons:-

• Needs everything ripping out (inc. new kitchen, bathroom, carpets, etc) - you could see this as a positive as it will allow us to do all of the work (which I can do most of myself) but our 20K will be eaten up fairly quickly.
• Bad distribution of floor space (downstairs bathroom, car port under 4th bedroom, small living room/kitchen, no dining room).
• Couldn't move in straight away - would have to continue renting for a few months whilst we refurbish.

Ultimately in 2-3 years we could have the second property exactly as we want it with a downstairs extension for total cost of 260K + mortgage interest.
The first property would take about 5-6 years before we could think about adding the fourth bedroom and we'd be looking at a total cost around 370K + mortgage interest.

Does it actually really need it or is it just that this is what you want to do?

Mickygg

My number 1 is affordability every time. Sounds like number 1 old property is just too much of a risk. I'm currently looking for a new home and I always look at what I can afford and if it's at the top of my budget then it can't have much work to do. Being 200 years old as you say you have to expect it will cost a lot when things need fixing.
Personally I'm looking for a small garden as I don't want much to maintain and my previous gardens were big and all I did was work all the time doing the garden and actually rarely enjoy it.
Add the fact that the main road would bother me (I would hate the pollution from the vehicles) I would only consider property number 2 from what you describe.