Buying a flat, is it stupid?

teabelly

How much are 2 bed terraces in the same location? If they are 130k or less they are a much, much better buy than a one bedroom flat. One bedroom flat at 85k (assuming terraces are 120K +) is a better proposition if you can't afford a house. One bedders have been selling for 70-80k in a lot of places so 120k for a new build or recent build is seriously wasting your money. Developers are desperate so if you really want the flat say you'll pay 85k and no more as with flats losing 25% of their value within 2 years in some places even in good times you don't want to be in negative equity the moment you get the keys. They'll probably knock you back but then you have had a lucky escape

Look on rightmove and see how many one bedders you can have for less than 100k. Assuming you mean southend on sea then the cheapest GF with garden is 65k. There's one at 80k with a garden and conservatory.

flatmate

Yup it is Southend On Sea. I hate to use the word its location, its fine picking the cheapest flats that are on the market but many areas in Southend are rather scummy. e.g. the one that is 65k is great if your favorite past time is being stabbed or are partial to smoking crack lol. The other problem with a lot of flats is they've converted big houses into 4 flats (2 down 2 up). This one is 1 up 1 down (Victorian) and has really big rooms (which I need for working from home), 70ft garden, off street parking and walking distance to train station. Houses in the area are mostly 3 and 4 beds and on the market for between 215 and 280, flat adjacent and in a worse state is up for 140 (not that it will sell at that price). The last flats sold down the road (all pretty similar to the one I'm buying as I viewed them all) went for 132 (12/2007) 132 (03/2007) 155 (07/2006 freehold).

LilacPixie

Flatmate

Ultimatly the choice is yours. Its all very wekk saying you could be paying a similar amount in rent for a similar property as you would your mortgage but prices are falling in most areas.

What would happen if in 18 months time you meet someone and have a family on the way?? a 1 bed flat would be too small for you all and by then the flat may only be 'worth' 90k

Idiophreak

I don't think now's the best time to buy, but to get things in perspective, I don't think you'll kill yourself through misery if you buy now...

dopester

LilacPixie wrote: »

Flatmate

Ultimatly the choice is yours. Its all very wekk saying you could be paying a similar amount in rent for a similar property as you would your mortgage but prices are falling in most areas.

What would happen if in 18 months time you meet someone and have a family on the way?? a 1 bed flat would be too small for you all and by then the flat may only be 'worth' 90k

And aren't 1 bedroom flats the type of property which is hit hardest in any big property crash. For those with any money, or able to get mortgages, 1 bed flats are not going to be top of the list when given a great range of property at distressed prices to choose from.

[Deleted User]

the word is that empty non-selling flats in blocks of flats are earmarked to be bought by councils for dss and I am talking new build here. Be careful where you buy OP

borntobefree

flatmate wrote: »

Yup it is Southend On Sea. I hate to use the word its location, its fine picking the cheapest flats that are on the market but many areas in Southend are rather scummy. e.g. the one that is 65k is great if your favorite past time is being stabbed or are partial to smoking crack lol. The other problem with a lot of flats is they've converted big houses into 4 flats (2 down 2 up). This one is 1 up 1 down (Victorian) and has really big rooms (which I need for working from home), 70ft garden, off street parking and walking distance to train station. Houses in the area are mostly 3 and 4 beds and on the market for between 215 and 280, flat adjacent and in a worse state is up for 140 (not that it will sell at that price). The last flats sold down the road (all pretty similar to the one I'm buying as I viewed them all) went for 132 (12/2007) 132 (03/2007) 155 (07/2006 freehold).

But maybe in a year 18 months you will be able to afford a small house when prices have fallen?

bobby-boy_2

"This one is 1 up 1 down (Victorian) and has really big rooms (which I need for working from home), 70ft garden, off street parking and walking distance to train station"

Hi flatemate I picked this sentence out because it changes your decision a little in my mind. Renting is fineBUT I am pretty sure most rental agrements prevent you from running a business from them. If you work from home running your own business then you would be in breach of your rental agreement and liable to eviction for this. just something to consider.

maryotuam

The price of this flat will probably fall over the next couple of years but if you are going to be there for at least 5 years that mightn't matter so much. Also if the repayments are close to rental prices, the quality of life benefits might make it worthwhile. It might also be worth pretending to pull out of this sale and making the seller sweat for a few weeks. That way they might be amenable to giving you a further reduction.

brit1234

Toots wrote: »

I'm surprised the OP is being advised to rent as I've read several times about upward pressure on rents and that significant increases in rents are to be expected if people pick that over purchasing.

It depends what part of the country you are in, ARLA stated this month nationally rents have fallen 9%. Mostly due to a surplus of buy to let flats. However I do recognise due to more expensive re-mortgaging some landlords are putting their rents up

Toots wrote: »

I think that the media stir up the markets by reducing confidence and it isn't necessarily that house prices will fall significantly in value. Houses around my way are still selling quickly and I haven't noticed that they ar getting less for them either. Maybe the areas that had the biggest increases to very unrealistic levels such as the South East are those that are falling quickly?

The fall in prices is to do with how overvalued the property market was. When the market broke the press have just reported this. Properties are falling at their fastest ever rate and will soon be back down to 3.5 times salary.

Don't buy what ever you do, get the best rent and save as much as you can in the next 12-24 months.