Found a one bedroom flat for sale, is it worth getting

sim2335

*UPDATED - Salary

With ground rent, mortgage,bills, insurance, furniture, council tax anything I’m missing?  

Looking at 800-1000 a month that means, I won’t be able to save much money a month 100 -200 if I’m lucky a month.

I can use my work bonus for holidays but that’s not guaranteed .

Benefits are very long lease.

Might go up in price when I choose to sell 5-10 years.

Double bed and big cupboard 

Watch tv in living room whenever I want have PlayStation there and bed just for sleeping less headaches.

The flat is all done up so nothing to do.

Is it worth going for?, or just keep saving, £1000 a month I’m on £10k savings  at the momment and I’m 35, it’s a low amount due to last debt issues unemployent and beign scammed by friends.

My salary is 23500 a year. (Excluding bouns)

Also if I go for it how much offer shall I put in, percentage wise 

hazyjo

How much is the flat and how much will you need to borrow? That's a very low wage and I doubt you'll be able to borrow much more than £40k. Have you spoken to a broker?

Don't forget service charge. Ground rent should be low. Do you need to run a vehicle? Buy transport fares?

sim2335

My wage is 23500 a year, yes broker said I could borrow 101k
strange enough Halifax said 114k, the reason I’m not going to them is if I get rejected then be very hard to find somewhere elese.

what’s likelihood of house prices going up in next 2-5 years and by how much.

my car I pay for now anyway so that’s sperate.

yes I rember service charge just forgot to write it.

t1redmonkey

sim2335 said:

My wage is 23500 a year, yes broker said I could borrow 101k
strange enough Halifax said 114k, the reason I’m not going to them is if I get rejected then be very hard to find somewhere elese.

what’s likelihood of house prices going up in next 2-5 years and by how much.

my car I pay for now anyway so that’s sperate.

yes I rember service charge just forgot to write it.

Well we’re not permitted to discuss house prices here so can’t comment on that.

You’ve not said what your current living situation is (I assume renting/house share?) .  I think generally  it is good to get on the property ladder in some form as long as you are not overstretching yourself too much financially.  However it does sound like you are not going to have much spare money if anything unexpected happens based on what you said above...

elsien

Has anything changed since the last time you asked this?
https://forums.moneysavingexpert.com/discussion/6349475/how-will-i-afford-a-property-20-30k-deposit-full-time-job/p1

theoretica

Some of the mortgage payment will be paying interest, but some will be paying off capital - which is similar to increasing savings if the property price holds or increases.

There will be some repair/upkeep costs - you just don't know when.

eddddy

Just to double check - how big is the flat?

I've come across some really small 1 bedroom flats - sometimes 30 sq metres or less?

If it's that kind of size, you might find it very difficult to get a mortgage on it. (Which makes the flat seem cheap and appealing, but they might only be suitable for cash buyers.)

sim2335

t1redmonkey - live with parents, but have 2 single beds so mum can use room when brother comes, and don’t really talk to my dad, or get along.

That’s problem if anything unexpected happens I won’t be be able to pay, if it’s over 500.

elsien - yes then I was going for freehold houses, now I’m also looking at leashold one bedroom flats, still offer freehold but can’t afford it.

Eddddy - it does not say size on advert, but it is big as I have seen it.

MalMonroe

How much do you pay for your accommodation at the moment? 

How much is the flat? 

How much do you have for a deposit? 

What do you mean when you say -

"Looking at 800-1000 a month that means, I won’t be able to save much money a month 100 -200 if I’m lucky a month."

If your income is £10k per annum, it is difficult to understand how you will be able to afford the above costs. And there won't be enough left for any savings. Does the figure of 800 to 1000 include your food, energy bills (which are increasing for everyone in the UK as we speak), council tax, television licence, etc? 

You say "Is it worth going for?, or just keep saving, £1000 a month I’m on £10k at the momment". Where does your other income come from? If your annual salary is £10k, it's very difficult to understand how you are affording to save £1k per month.

When buying a property you will also need to pay for a solicitor and maybe a surveyor too. And then there will be insurance costs - contents and buildings. It's also good to have a contingency fund in case anything goes wrong or breaks down. 

As hazyjo above suggests, it would be a very good idea to speak to a mortgage broker in the first instance. 

lesalanos

Using all of your "spare" money on a mortgage isn't the best idea for me.  Have you factored in the rising energy costs  Council tax, insurance? Other bills

You haven't anywhere near enough saved up yet for a deposit, stamp duty, solicitors fees then furnishing your new flat.

House prices are likely to continue to rise but this isn't guaranteed and the profit in 5 years is likely to be small in my opinion.

Keep saving for now

sim2335

MalMonroe - I pay 0 rent as live with parents.

Flat is 120k

I have 11k for deposit but my mum will help me out to up to 10k

If I buy the flat including all costs for flat mortgagee, ground rent bills food etc 800-1000 a month hence I won’t have much money just to generally save for emergency security, or help getting a freehold later if house prices don’t go up?

That’s updated I mean my savings are 10k, my income is 23500 a year excluding bouns.

Yes 800-1000 includes that, approximate figures below.

100 bills 

140 - council tax

540 - mortgate

100 - food

40 - home insurance

75 - tv licensee

How much are surveyour fees.

I’m speaking to a mortgate broker, they don’t advice me on wether to buy it or not they just try to help me get it and talk about costs, and how much I could borrow.  

lesalanos - it’s not all my spare money I will have been tween 500-600 left, will use that on my car sometimes eating it souvlaki events etc