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What should I do with my savings?(14 Posts)
I bought my flat from my HA 3.5 years ago. I'm now allowed to sell it with no penalty, and this was always the plan as it's too small for me and teen DS now.
I have £7k savings and was planning to use this plus equity towards my next place. If the flat sells for what it was valued at when I bought it, I will make £18k equity. I've put in a new bathroom since buying.
However, considering the market at the moment, and the fact it's not a great flat, I'm doubtful that I'm going to be able to sell it at what it was valued at originally. It desperately needs a new kitchen and new double glazing in the living room.
Should I use my savings doing these things and hope it increases the value? Or just continue to save? I'm aware I'll have a good chunk of fees, etc. to pay, and obviously lenders now want 15% deposit at least, when I had been budgeting for 10% so that all eats into my saving and equity.
What’s your competition like and what’s the value of the flat?
I would think that having a ‘done up’ flat isn’t double glazing, lovely kitchen and bathroom etc should be more appealing but only makes sense if you can get your money back.
What isn’t great about the flat?
It's an attic flat, with hardly any storage and small kitchen. I'm the only owner in the block of 9.
It was valued at £43k when I bought it. There's a similar attic flat round the corner which is on at £68k, but it's obviously in better condition. It's been on for a couple of months now. They seem to be selling from anywhere between about 40k - 70k, although those at the higher end are a little larger and not top floor. There are a lot of rented properties on the street.
I should say, I got quotes to replace the living room window a while back, and the second guy said he wouldn't bother changing it to sell. He said he'd feel bad taking my money! Was quoting me almost 2k for the window though. (It's a 3 pane bay).
I’d probably tart up the kitchen if it’s really dated. It’ll have a bigger impact but cost not much more than the window. It sounds like it might get bought by an investor.
How much do you think I could replace the kitchen for? It's only small - about 2.4 X 2.7.
I'm always reading on here not to improve kitchens before selling and moving as its likely to that the next owner may want to change it anyway.
Have a look on Ikea and DIY kitchens websites.
My friend has done a budget kitchen in a flat this year and I think she said it cost 3.4k. She opted for white cupboards from Ikea, a wood-effect laminate worktop and metro tiles. It looks fresh and neutral. The biggest thing is labour costs so you’d need to shop around for someone to fit it.
No don't do the kitchen, I generally hate kitchens in the houses we are looking to buy and would actually be annoyed in buying somewhere with a new kitchen i didn't like. Also just because it's a small space doesn't mean it won't cost a lot. I'd declutter, fix issues that look alarming, but don't put a new kitchen in.
Buyers rarely notice the windows. And often people do want to change kitchens themselves so the cost of a new kitchen isn't worth investing in. Think about a kitchen refresh rather than a replacement if it is really tatty - a new worktop, a change of handles, painting cupboards (frenchic is the current craze) can do wonders.
The best thing you can do is a complete de-clutter, use your spare cash to hire some storage space if need be.
The best thing you can do is a complete de-clutter, use your spare cash to hire some storage space if need be
Get it valued by a few agents OP. They know the area. Sounds like an investor or FTB scenario to me. I wouldn’t bother with a new kitchen, just get it decluttered and scrupulously clean.
The honest window guy sounds great btw.
I wouldn't spend on the kitchen. Make sure it's clean and tidy and a bit of paint if necessary.
I've mentioned here before that we fitted a complete new bathroom to in laws property prior to selling. The new owners started renovating within a week and the first thing in the skip was the new bath.
Definitely save your money and try selling at the price you'd like- if it really, really struggles to sell that's the time to consider spending money but tbh at that price point i think you'll find a buyer.