Sorry - long!
TLDR: mid-twenties single first time buyer: should I buy share of freehold flat or house in up-and-coming area? Which is better investment/better idea?
Hi all,
I posted a similar thread yesterday (about house-buying) so sorry if this seems like a bit of a repetition from what I posted previously.
In a nutshell, I’m a single first-time buyer and am looking to buy in London where I work.
My plan was always to buy a house.
This is because houses are totally owned by the homeowner (normally no lease, unlike a lot of flats, unless house is new-build) and are normally much more spacious than flats.
Houses always seemed like a much better long-term investment than a flat because of this. I was thinking of perhaps renting it out eventually although not sure.
My plan was also to try and buy in up-and-coming area (e.g. Forest Gate) and I’ve done a lot of research into this.
I’d be happy living in that sort of area as it’s so well connected and will be even better with Crossrail. Although I know the area is slightly dodgy, so I’d feel a bit nervous coming home late.
Anyway, I’ve been thinking that actually a flat may suit me better right now, as I’d be buying on my own.
A house is obviously a lot of work to maintain (esp with a garden), and most of the houses I’ve looked at are more reasonable because they need a bit of work done to them. And I’d feel less lonely living somewhere like a flat, where I’d have other people in my building and be able to afford somewhere more central than I could with a house.
Even if I bought in somewhere well connected like Forest Gate, I’d still be far away form friends and family living in London and would probably feel quite vulnerable living on my own in a house.
If I buy a flat, I’d definitely prefer to buy a share of freehold flat rather than leasehold, as I don’t want to have to worry about extending the lease. I know share of freehold flats are harder to come by though!
What are your thoughts?
Is a share of freehold flat as good an investment as a house? I think it makes the most sense for me right now. Also, buying a property is obviously a massive financial commitment and I don’t want to come home every night stressing about the place I’ve bought and hating it.