2 bed terrace or new build flat?

redhead123

I'm a FTB about to exchange contracts on a house, 2 bed terrace, no real parking to speak of (wellthere's a bit of land opposite, owned by council but theycould reclaim at anytime!), itneeds basic work -steel beam to chimney flue in roof, electrics, open splay joint on front purlin, replaced cracked flashing on chimney...). It's on a reasonably busy road, but has double glazing, a nice patio bit at the back, but has to allow acces to other house (there's a galley walkway at the side of the house). 15 minute walk to mainline station to London (40minutes by train)

The Purchase price 125,00, minus 3,500 for the work although i ;m going to ask for 5 grand off cos the electrics might cost half of that).

But..I'm now having a few doubts! Would I be better off with a 2 bed new build on shared ownership? Less upkeep (apart frm the initial fixtures and fittings). I'd own 40 percent and pay rent on the rest, it has en suite bathroom and is quite spacious, with parking space. Perhaps more secure?? 5-10 minute to maiinline station to London.

Both properties cost about 500 a month for the mortgage

Obv if i pull out of house then i have to get a new mortgage offer (the rate i have at the minute is 4.99)..Or I could buy a flat cheaper off plan (complete in August)..

Or is the terrace a good buy?

I plan to live there for a bit then rent out (obv wouldn't be able to do this with shared ownership, would sell on).

flower_72

Personally I'd stick with the 2 bed terrace. But that's because I'm not a fan of flat. Even less so of newly built flat and further less of shared ownership flats...
With flats, you have to think of who and how will the upkeep of the building be paid. With a house, what you do, how you do it and how much you spend is solely your decision.
I'm renting a flat at the mo. There is a leak showing in my flat. According to the landlord's surveyor, it's due to the roof needing repairs. Guess what? This is contested by all other flat owners. They purely and simply don't want to pay for something that impacts on just one flat at the moment. It's a complete joke! I'm glad I don't own a flat.
I also own a house. I've never been stressed out about doing repairs to it. It is an old 2 bed terrace. I am very happy with it.
I also find the relationship with the neighbours better on a street than in a block of flats.
Financially, I wouldn't know what is best. I have never bought a house as an investment but as a place I feel happy living at.

Rabiddog_2

2 bed terrace....new build Flats are inevitably overpriced, sometimes spectacularly so (40%+).
Also check service charges .. they can be quite high.. thats why these places can be maintenancefree.. because you're paying for it.

Go in hard on the price, ask for a fifteen percent discount, dont blink... and you'll walk away with enough dosh to completely pay for all your repairs. and the smug glow of knowing you got a good price.

I feel happy living at.

But you live in the flat?

Doozergirl

Two bed terraces of all house I think provide most flexibility and will always be popular. If I could choose the type of property I could sell, it would be two bed terraces all day long. Suitable for singles, divorcees moving down from a bigger house, couples and small families they have by far the widest market. Always good renters too.

And the benefits of owning your own freehold and not being at the whim of others with regard to repair and costs are endless (once you've been able to compare otherwise you'll just take freehold ownership for granted). If youwant something doing, you just do it, you don't have to wait, be forced to pay through the nose or have works that you don't even feel need doing thrust upon you. Oh, and the monthly service charge for you rip-off managing agents. Nice.

flower_72

Rabiddog wrote: »

But you live in the flat?

I know! Tell me about it... It's very temporary though (monday to friday-ish - work dictates). I can't wait to move back in my own house for good. I'm counting the days! :j

redhead123

The asking price was originally 135,000..I offered 125..was accepted..then after survey asked for 3500 off..accepted...i figure that's cutting it fine to get the work done andam thinking of asking for an extra 1500 (to make it to 5000) to cover myselfin case the whole place needs rewiring.

The negotiations onthis are with the builders of the place the vendors are buying- they want to exchange this weds (seem pretty desperate to me) so d'you reckon they'd go for it even though i'd verbally agreed 3500?

Doozergirl

I think you need to establish whether the work needed doing or not. They might not be too keen if you're just speculating.

On the other hand they might still be. At least if they say no, you know they won't pull out altogether, it's about money, not pride for a developer.

pinkshoes

If the 2 bed terrace is the same price as a 2 bed flat, then I'd go with the terrace. Depends if the flat is in a small development (no social housing!), and has decent parking.

I would be more put off by the lack of a parking space, as 15 minutes is a long walk when it's pouring with rain!!

redhead123

flat is 70,500 for a 40 percent share..so total price of flat isa around 150k or something, house is 125 minus the 3500 i asked for (going to ask for 5 next week)

It does have an allocated parking space...

Builders just want a sale to go through don't they..if they current vendors have to re-market the property then it could cost more for them as they still can't sell their house to the vendors

redhead123

pinkshoes wrote: »

15 minutes is a long walk when it's pouring with rain!!

Maybe I should try the walk today..it's pouring with rain here

Kavanne

I would say 2 bed terrace.
As someone who has just purchased with very similar requirements to you, I would have chosen 2 bed house over new build flat anyday.

(We ended up buying a 2 bed flat, but not purpose built, it's the ground floor of a house so we still get garage and a garden).
But if a house with the same features had come up I would rather have had that, but apparently in our area garden + garage for 160k just doesn't exist!!