Buying a House - looking for advice

noctua

I have around 120k in cash (excluding other savings) and I'm looking to purchase my first home, more as an investment than for living in. I'm close to 30, no kids or partner and self employed earning around £35K a year currently (income has lowered significantly since covid). I rent in one of the home counties and realistically have no chance of buying anything here as much as I'd love to. 

I am exploring the idea of buying in the north and outright if possible. I would be looking for a 2 bedroom and let out the other room. Can I get something in a decent area in my budget without seeking a mortgage?

I've had a look on Rightmove and see an abundance of houses that look in a good state of repair within my budget. But what's the catch? Will these be really bad areas or undesirable locations? 

Briefly did some calculations and monthly outgoings would be around £300-350 which could be covered by having a lodger. It seems like a good idea on paper but wanted others' opinions. 

Thanks

user1977

You'll probably need to be more specific about what you mean by "the north" or "decent areas"! It's probably a bad idea to buy in areas which you know nothing about.

crow22

While obviously theres a lot of variation in price between area to area in general though property in the North is quite a lot cheaper than in the South or South East. We recently moved from over priced Oxfordshire to Northumberland and the difference was staggering.

Myci85

It sounds like you're planning on buying somewhere 'up north', renting out a room to a lodger, but you stay living in the home counties? If so, your lodger won't be a lodger, they'll become a tenant will all the rights that gives them I believe. To be a lodger, you have to also be living in the property, not just keeping part of it for occasional use/storage etc. 

RHemmings

user1977 said:

You'll probably need to be more specific about what you mean by "the north" or "decent areas"! It's probably a bad idea to buy in areas which you know nothing about.

Agreed. OP - go and stay in the places you're interested in for at least a few weeks. False economy to not do so, IMHO. 

Sunderland is a place where it will be easy to get a 2 bed house for £120k. I haven't been to Sunderland so can't comment, but I know someone who downsized from Cambridge to a small cheap flat in Sunderland. Which was extra cheap because it has a short lease but the owner doesn't care as he doesn't expect to live another 50 years. Certainly it was a financially advantageous move. 

Here's what Google's AI says about Sunderland. It sounds ... more positive than I expected. 

Sunderland is a city with a friendly, welcoming atmosphere and a strong sense of community. It offers a blend of coastal charm, urban energy, and access to countryside, making it an attractive place to live. While it has a rich maritime history, it's also experiencing a cultural and economic revival with new developments and attractions. 

Here's a more detailed look at what it's like to live in Sunderland:

Positive Aspects:

• Strong Community:

  Sunderland is known for its friendly locals and welcoming atmosphere, making it easy for newcomers to settle in. 

Affordability:

The cost of living, particularly housing, is relatively low compared to many other parts of the UK, offering good value for money. 

Coastal Lifestyle:

Sunderland boasts beautiful beaches, coastal walks, and the popular Seaburn and Roker areas. 

Access to Green Spaces:

Mowbray Park, Herrington Country Park, and the Riverside Park offer serene spots for recreation. 

Cultural Attractions:

The city has a thriving arts and culture scene, including the Empire Theatre, Sunderland Museum and Winter Gardens, and various festivals and events. 

Proximity to Newcastle and Durham:

Being close to Newcastle and Durham provides access to larger city amenities and attractions. 

Developing City:

Sunderland is undergoing a transformation with new housing developments, business hubs, and cultural attractions. 

Potential Considerations:

• Former Industrial City:

  Sunderland was once a major shipbuilding and mining area, and some perceive a lingering effect of past economic challenges. 

Safety and Crime:

While the city is improving, concerns about safety and crime are valid when considering relocation. 

"Rough" Areas:

As with any city, some areas of Sunderland are considered less desirable than others. 

Overall, Sunderland offers a mix of affordability, coastal living, community spirit, and cultural attractions, making it an appealing place to live, particularly for those seeking a balance between city life and access to nature and a close-knit community. 

Tabieth

My view, for what it’s worth, is unless one intends to make a business out of this (buying & flipping or being a private landlord) then buying is first and foremost about buying a home. Of course buying is often an investment as well but ultimately you’ll be living there. (Or at least I assume you will be living there as you talk about having “a lodger”, if you’re buying to rent out that’s very different) 

So I’d narrow it down. “The north” is a very big area with cities, rural areas, very affluent areas, deprived areas. Where do you want to live? Where are your friends / family / work? What do you want? A quiet village or a bustling city with theatres and bars? The go there. Stay in the area for a while and walk around to get to know it. Do you get a good vibe? Could you see you living there? Then start booking viewings. 

Of course if you don’t intend to live there then you’ll be a private landlord with tenants, not lodgers. So it will be a little different. I’m not really best placed to advise but I imagine a lot would depend on who you are aiming your rental property at. As a two bed I’d assume not student or families but young professionals. So I’d research where’s best for that demographic (I’d assume city breather than more rural). 

Tabieth

My view, for what it’s worth, is unless one intends to make a business out of this (buying & flipping or being a private landlord) then buying is first and foremost about buying a home. Of course buying is often an investment as well but ultimately you’ll be living there. (Or at least I assume you will be living there as you talk about having “a lodger”, if you’re buying to rent out that’s very different) 

So I’d narrow it down. “The north” is a very big area with cities, rural areas, very affluent areas, deprived areas. Where do you want to live? Where are your friends / family / work? What do you want? A quiet village or a bustling city with theatres and bars? The go there. Stay in the area for a while and walk around to get to know it. Do you get a good vibe? Could you see you living there? Then start booking viewings. 

Of course if you don’t intend to live there then you’ll be a private landlord with tenants, not lodgers. So it will be a little different. I’m not really best placed to advise but I imagine a lot would depend on who you are aiming your rental property at. As a two bed I’d assume not student or families but young professionals. So I’d research where’s best for that demographic (I’d assume city breather than more rural). 

Smalltownhypocrite

I up in the north and just completed on a 4 bed that needs cosmetic updating but is well maintained (heating serviced regular, electric updated each decade, damp proofed etc...) for £103,000 and we live at the good side of our town.

£120k is a decent budget for the north but don't buy blind research the areas. Some are gorgeous little picturesque villages, some are standard decent town/suburb areas and some are abandoned hellscapes full of trouble and theres not always that far between the good areas and the bad areas.

RHemmings

Smalltownhypocrite said:

I up in the north and just completed on a 4 bed that needs cosmetic updating but is well maintained (heating serviced regular, electric updated each decade, damp proofed etc...) for £103,000 and we live at the good side of our town.

£120k is a decent budget for the north but don't buy blind research the areas. Some are gorgeous little picturesque villages, some are standard decent town/suburb areas and some are abandoned hellscapes full of trouble and theres not always that far between the good areas and the bad areas.

I'd like to ask which area you live in. But, there is the risk that if you tell us then someone might be able to find your house based on number of bedrooms and sale price. 

Tabieth

Smalltownhypocrite said:

I up in the north and just completed on a 4 bed that needs cosmetic updating but is well maintained (heating serviced regular, electric updated each decade, damp proofed etc...) for £103,000 and we live at the good side of our town.

£120k is a decent budget for the north but don't buy blind research the areas. Some are gorgeous little picturesque villages, some are standard decent town/suburb areas and some are abandoned hellscapes full of trouble and theres not always that far between the good areas and the bad areas.

It depends though. I’ve just bought a 2-bed terrace in the north for £205k which needed some work and money spending on it. There are definitely much cheaper properties in my city but for me, location was key. There’s nothing even close to £120k in good locations where I live. 

SarahB16

RHemmings said:

Smalltownhypocrite said:

I up in the north and just completed on a 4 bed that needs cosmetic updating but is well maintained (heating serviced regular, electric updated each decade, damp proofed etc...) for £103,000 and we live at the good side of our town.

£120k is a decent budget for the north but don't buy blind research the areas. Some are gorgeous little picturesque villages, some are standard decent town/suburb areas and some are abandoned hellscapes full of trouble and theres not always that far between the good areas and the bad areas.

I'd like to ask which area you live in. But, there is the risk that if you tell us then someone might be able to find your house based on number of bedrooms and sale price. 

For a house to be that cheap and that is ridiculously cheap for the north I'd guess somewhere like Blackburn, Accrington or Burnley (noting there are nice areas in Burnley too).