Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Should/shouldn't DS1 buy a flat

77 replies

HelpsHeal · 06/04/2023 16:01

Currently lives at home.

He has a good deposit. Runs a car that's paid for, no debt. Currently pays keep at home . Earns £30k

Round here he can get a small one bed flat in a nice block for c. £200k.

Entry level houses are £350k and often not in such nice locations.

He could afford the flat, in that he can raise the money, we haven't looked at monthly costs yet. The house is out of reach. His job is local and we're already in the cheapest town for miles around, so changing area not an option.

I've always really resisted buying flats because of the leashold/maintenance charge issues. Also, if there is a property crash, these tiny flats will become unsaleable (because houses become more affordable, at least that's what happened here last time).

However, realistically this is the only way he'll get on the ladder.

Ultimately I'll get no say anyway, but what would you advise?

He's OK living here, but he's 22 and has to go some time.

OP posts:
HotPenguin · 06/04/2023 16:42

A flat can be a good first property as there's no need to worry about maintenance. Yes you have to pay a management fee, but it saves you a lot of hassle.

I wouldn't necessarily go for share of freehold either, as that's only good if the other freeholders are sensible and well organised. I had a share of freehold about 15 years ago, the other day I had a call from the electricity company about the communal supply there. Clearly noone had updated the details after I moved so god knows what's happening with the communal electric bill!

Im99912 · 06/04/2023 16:42

If it’s a flat that was built before June last year then it will probably be on a typical lease of 125 years and ground rent payable

new build built after I think June or July last year have a 990 lease and a peppercorn ground rent

the first type of flat at the moment is very hard to sell or buy
so check this before putting any money into it
none of the flats where I live can sell or buy and this has been the case since last June

stevalnamechanger · 06/04/2023 16:43

I would absolutely NOT ever encourage anyone into a flat . I sold mine and felt like I'd had a life sentence cut short

Look up national leasehold campaign online .

user1471548941 · 06/04/2023 16:46

So I have a more positive view on this…

I bought a 1 bed, leasehold property alone, age 24, in a pricey market town in SE, with a deposit saved whilst living at home, in 2017.
I desperately wanted on to the property ladder and hated the idea of either renting or sharing, so this was literally the only way I could afford to buy. Sucked up a higher interest rate to get 4.5 x salary with only 10% deposit, 5 year fix.

It was tight money wise as the property needed some maintainence (new windows and doors!!!) which wiped out everything but month by month it worked. For 2 years I basically had no holidays or real luxuries but did manage to improve the condition of the house. The leasehold charges remained fixed and this actually worked in my favour as the sinking fund covered the cost of some of external repairs required.

Over the next 5 years, I progressed in my career and salary doubled. I also found a partner who moved in to the place I owned and helped pay the bills. Our household income was 5 x what I’d bought the place on and we started to overpay the mortgage. We also had enough disposable income on this set up to pay for a big wedding where we covered costs for family and friends and a couple of luxury holidays.

We decided last year it was time for a bit more space and with the overpayments + increase in value, we had nearly 50% equity. We did calculate that if we stayed another 4 years we could go mortgage free on the 1 bed!

What we actually chose to do was withdraw some equity, which we put down as a deposit on a 3 bed semi (again, pricey SE town) and remortgaged the 1 bed as a buy to let (significant lack of rentals for locals in my area due to the touristy location meaning they all get AirBnbed), meaning I own 2 properties by 30.

the benefits far far offset the costs of the leasehold but a good solicitor will review this for you- some places are pricier than others!

RosesAndHellebores · 06/04/2023 16:49

He needs to start with a flat. But not at this point in the cycle. Give it 18 months to two years and buy at the bottom.

Why the rush? What are his prospects? Where would he be buying? Has the budget been done including all outgoings?

I bought a flat at the bottom of the boom/bust cycle in 1981. 3 x my salary and I had to have a lodger to make ends meet! Interest rates were probably between 10% and 12%. I recall weeping when I added up the cost of: rates, water rates, utilities, service charge, insurance, fares to work, etc. I think I had something like £5.72 pcm left.

Still one of the best things I ever did.

DanceMonster · 06/04/2023 16:52

titchy · 06/04/2023 16:10

Eh?! House sharing is everywhere! Given he's presumably only just back from uni, as are his friends, it's probably not quite on his radar yet. But really, young people all over the country are in house shares.

We live in a very small town. Some people may share with existing friends but I’ve never seen an advert for house shares for people who don’t already know each other and have made the decision to rent a house together.

emmathedilemma · 06/04/2023 16:59

stevalnamechanger · 06/04/2023 16:43

I would absolutely NOT ever encourage anyone into a flat . I sold mine and felt like I'd had a life sentence cut short

Look up national leasehold campaign online .

What a ridiculous comment, in many areas it's the only way people can afford property! There's such a snobbishness about living in flats in this country.

Calmdown14 · 06/04/2023 17:10

How much more would a two bed flat be? I think I'd be tempted to give it a bit longer to save and to let the market stabilise.

If he can stretch to a two bed he is less likely to end up in a situation where he needs to move (might want to but that's very different). In five years time he might have a partner and a baby. That's possible in a two bed. One bed really limits your options.

I'm not anti flats but having one you can stay in long term is less stressful. He doesn't want to be in a position where change in life means he has to sell at a bad time.

GETTINGLIKEMYMOTHER · 06/04/2023 17:16

I agree with the pp who said wait a bit and save for a 2 bed. Easier to sell eventually, and as already mentioned, you can rent a room out for AFAIK £7500 a year or thereabouts, tax free.

BlueBunting · 06/04/2023 17:20

Honestly buying a flat at his age is great. He can upgrade when he gets a better job or saves more or has a partner. He won’t not get a house if he doesn’t buy now!
mid you have the money to give him and want it to go in a house then do so. If not he’s still in a very fortunate position to buy a flat

2bazookas · 06/04/2023 17:22

I'd suggest he holds off buying until he can afford a nice 2-bed flat. Then he has the option of having guests to stay; having a lodger to share costs.

Also far more saleable.

Chewbecca · 06/04/2023 17:24

I started on the housing ladder with a 1 bed purpose built flat in the town centre. Had a great time there and it helped me move up the ladder at a later date.

DoeRayMe · 06/04/2023 17:43

I'd maybe do a buy to let so he's on the ladder but gets the mortgage paid for. Add a second but to let in time then when he wants to move out sell both and buy a house

gogohmm · 06/04/2023 17:55

A flat is ok but I would always suggest a 2 bed with a second room suitable for a lodger in case he struggles. I'm surprised there's such a price differential, here there's houses cheaper than the apartments

stevalnamechanger · 06/04/2023 18:46

@emmathedilemma

How is it snobby? I LIVED IN A FLAT!

I had constant anxiety due to the horrendous management agent , neighours , noise , constant random bills , annual overspends !

The only time I'd encourage anyone is in a share of freehold - but that also can have its problems

Eyesopenwideawake · 06/04/2023 18:51

Bear in mind the property prices are trending downwards at the moment so he should hold off buying anything for now. Maybe by this time next year a two bed flat or a 'doer-upper' house might be within his grasp.

UsingChangeofName · 06/04/2023 19:14

I’ve never seen an advert for house shares for people who don’t already know each other and have made the decision to rent a house together.

Some people have a very limited experience of life.

It is incredibly normal to rent a room in a house as a youngster first leaving home (or leaving university). Nor is it a new thing. It was how I was able to afford to eat as well as pay my first mortgage, when interest rates were up to 15%.

Back to the OP........
I would suggest continuing to save (which he seems very good at, to have a £50K deposit at 22 !! ) and waiting until he can afford a 2 bed. Much more flexibility (for renting out a room) or for selling on, or just for living in as a couple, or even a family if his life goes that way.

In the meantime, familiarise himself with flats' service charges, leasehold charges, maintenance charges, and rules and limitations on what he can do. They vary wildly.

Original poster
HelpsHeal · 06/04/2023 19:16

UsingChangeofName · 06/04/2023 19:14

I’ve never seen an advert for house shares for people who don’t already know each other and have made the decision to rent a house together.

Some people have a very limited experience of life.

It is incredibly normal to rent a room in a house as a youngster first leaving home (or leaving university). Nor is it a new thing. It was how I was able to afford to eat as well as pay my first mortgage, when interest rates were up to 15%.

Back to the OP........
I would suggest continuing to save (which he seems very good at, to have a £50K deposit at 22 !! ) and waiting until he can afford a 2 bed. Much more flexibility (for renting out a room) or for selling on, or just for living in as a couple, or even a family if his life goes that way.

In the meantime, familiarise himself with flats' service charges, leasehold charges, maintenance charges, and rules and limitations on what he can do. They vary wildly.

Haven't you equally lived a very narrow life if you can't grasp that in some places it's not the norm?

OP posts:
seekingasimplelife · 06/04/2023 19:51

Buy to let a flat, whilst still living at home, and build up enough equity to sell it and buy a house in the future?

PattiDuke · 06/04/2023 19:58

'He's already had 6 years of being a grown up' - but living at home with mum/dad isn't exactly grown up. Great he has a car, no debt and considerable savings at 22 years old. However as previous posters suggest he would possibly be better waiting, saving for a larger deposit, or experiencing a bit of life ...

DanceMonster · 06/04/2023 21:14

UsingChangeofName · 06/04/2023 19:14

I’ve never seen an advert for house shares for people who don’t already know each other and have made the decision to rent a house together.

Some people have a very limited experience of life.

It is incredibly normal to rent a room in a house as a youngster first leaving home (or leaving university). Nor is it a new thing. It was how I was able to afford to eat as well as pay my first mortgage, when interest rates were up to 15%.

Back to the OP........
I would suggest continuing to save (which he seems very good at, to have a £50K deposit at 22 !! ) and waiting until he can afford a 2 bed. Much more flexibility (for renting out a room) or for selling on, or just for living in as a couple, or even a family if his life goes that way.

In the meantime, familiarise himself with flats' service charges, leasehold charges, maintenance charges, and rules and limitations on what he can do. They vary wildly.

Haha. I’ve lived in house shares. In London, Bristol, Milan, Madrid and Paris. Doesn’t change the fact that in many villages/towns in the U.K, it isn’t really a thing. I have never seen an advert for a house share in the town I now live in.

UsingChangeofName · 06/04/2023 23:03

Haven't you equally lived a very narrow life if you can't grasp that in some places it's not the norm?

No.
I was replying to this I don't know anyone who has ever house shared either! It wasn't even something I heard people doing when we were younger! and your comment on P1 where you suggested sharing a flat / house was only a London thing, in the context of "if I haven't seen it, it doesn't exist" thinking. I'm aware of young people living as lodgers in other people's flats, or 'young professionals' sharing houses in cities all over the country. It's hardly a new or unusual thing. Also reflected in TV programmes, films etc.

emmathedilemma · 07/04/2023 08:46

I think flat/house sharing is pretty common among graduates who have jobs in big cities that are expensive to live as it's the only thing they can afford. Definitely most, if not all, our grads in their early/mid 30's flat share. Outside the big cities and among non-grads I think it's less common and more people stay at home until they move out either on their own or with a partner.

starfish4 · 07/04/2023 08:50

It's how I started off.

One thing I would say, is that if he's old enough to buy a property, he's old enough to work out his outgoings by himself (totally understand as a parent you'd like to take a look at his calculations to make sure he has missed anything though)

Knullrufs · 07/04/2023 08:58

Personally, I would not buy a one-bedroom flat, unless it was in London or commutable to London. (And if a one-bed is 200k, it won’t be.) One-bed flats outside of popular cities/commuter zones will have limited resale potential as the market is quite small.