Have I overpaid on this flat?

ciderboy2009

The problem with buying a property in BS5 is that you're right in the middle of the part of Bristol that is still seeing prices rise at an amazing rate.

Bearing in mind that a two bed terraced house not to far from that flat has recently gone onto the market for £375k (and will probably sell for more than the asking price) then I don't think your price is too high.

Personally I would be looking a bit further up the road though near to the park or heading up to Kingswood - there's always a flat or two up for sale around there that isn't over a shop

Ath_Wat

snowqueen555 said:

There aren't many flats on sale above shops so I did have a look but couldn't see. I think the same flat in the same area not above a shop would go for £180k right now. Every other flat I've looked at needs decoration works so I also factored that into my offer as well.

If you are right on that 180 (I don't know if you are) then I would say, yes, you are overpaying - that is not a sufficient drop in value for a flat over a shop, in my opinion.  I'd pay the additional 7K without a thought for the identical not over a shop version.

snowqueen555

ciderboy2009 said:

The problem with buying a property in BS5 is that you're right in the middle of the part of Bristol that is still seeing prices rise at an amazing rate.

Bearing in mind that a two bed terraced house not to far from that flat has recently gone onto the market for £375k (and will probably sell for more than the asking price) then I don't think your price is too high.

Personally I would be looking a bit further up the road though near to the park or heading up to Kingswood - there's always a flat or two up for sale around there that isn't over a shop

That's what made me second guess myself, just up the road are a few 1 beds flats for £175k-£185k region in BS5, Kingswood is the same but not nearly as attractive an area.

Bear in mind all my previous bids were not good enough so there is a good chance these have gone above asking, which is why I ended up bidding on this flat.

snowqueen555

K_S said:

snowqueen555 said:

p.s My main worry is after the fixed period something happens like a kebab shop opens and then I cannot remortgage and get stuck on the variable rate.

@snowqueen555 This is very unlikely to happen if you're with a mainstream lender. As long as you are not in arrears, etc., aren't looking to borrow more and aren't looking to change the term, you should have the option to do a product-transfer/product-switch/rate-switch with your existing lender and sign-up to a new fixed term.

This process usually involves no credit-checks, no income checks, no new property criteria. For example, even for those of my clients with un-mortgageable and unsellable flats stuck in cladding hell, I had no issues doing product transfers with their existing mainstream lender. 

This is good to know and something my broker didn't tell me. At the moment we have agreed to apply for the mortgage and get the valuation, that will tell us about whether I've overpaid.

Atomix

My issue is, the floorplan does not represent reality, virtually every wall has a huge slope (roof) encroaching into the space - like massively.... hence, nice tall wardrobe in the bedroom alcove, not happening, only x1 small kitchen wall cupboard, zero scope for any more, living room space, largest wall looks like half of the height is taken up with roof, so no hanging a nice tv up there, etc etc etc 

Sarah1Mitty2

snowqueen555 said:

canaldumidi said:

snowqueen555 said:

There aren't many flats on sale above shops so I did have a look but couldn't see. I think the same flat in the same area not above a shop would go for £180k right now. Every other flat I've looked at needs decoration works so I also factored that into my offer as well.

Any actual 'sold' prices? They are much more relevant than seller's advertised prices.

Difference between your £173 and an advertised price of £180 is marginal, but the £180 flat (which might actually sell for less) doesnot have the current or future mortgage problem so should be much more attractive.

Decoration makes little difference.

Yeah I was sorta thinking that. I think I'll have to see what the valuation says and I might pay to get a second opinion.

I'm sorta hoping it is for less now so I can negotiate it down.

The banks seem to be doing this a lot now, but whether the seller will bite is another matter. If it is retail below you won`t have much or any control over the type of shops that open there.

caprikid1

" Kingswood is the same but not nearly as attractive an area."

I think you will find a lot less anti social behaviour better shopping and easier access to the countryside. But I am probably a bit bias.

Ditzy_Mitzy

The biggest issue with that place is volatility within the commercial property sector.  The unit downstairs appears to be some sort of estate agent at present, which is fine to live above.  What happens if they decide to move out?  You might find yourself living above a wine bar or a barber's shop or something else more intrusive.  That will reduce the value of the flat commensurately.  

It's also a bit of a funny flat.  It looks like former commercial premises, possibly converted offices or store rooms.  Might be worth finding out who the rooms used to belong to.  If it's the estate agent downstairs it may be an indication that their business is shrinking or they have got rid of staff, which would then lead to questions about future viability and whether they will keep the ground floor.  

That might not happen, of course, but mixed residential and commercial involves too much dice rolling in my opinion.  

AFF8879

I would be extremely hesitant given somewhere like this (i.e. fully residential) is on for the same price a few minutes away

https://www.rightmove.co.uk/properties/85757937

ciderboy2009

AFF8879 said:

I would be extremely hesitant given somewhere like this (i.e. fully residential) is on for the same price a few minutes away

https://www.rightmove.co.uk/properties/85757937

This is where knowledge of the area helps.  There are reasons why that one is cheaper (the same goes for the £150k studio in the converted pub)