Hi,
My DH and I are at a point where we need to decide ASAP on what property to purchase due to rental extension...
We are wondering whether to:
- buy a 2 bed flat in Zone 2 for £450k (this is a small 2 bed flat with 2nd room being a office/guest room
PROs )
- we love the location, transport links and the flat is perfect
- flat comes with a nice long lease, good service charges...
- I can commute via train to both Hertfordshire and Berkshire, DH can cycle to work
- Flat prices are stagnant in the last 6 years so falling in real terms
CONs
- flat is small around 50 square meters (550 sq. ft.)
- I don't see the value going up anytime soon - who is the potential buyer marker? Any professionals are now likely to look outside of London.
- rents in this area dropped 20% or so due to COVID-19 - I wonder when there is even going to be a recovery in demand?
- 2-3 bed house in Hertfordshire for £425k
PROs
- freehold house
- spacious though we wouldn't need a 3rd bedroom, so maybe we go for a 2 bed house
- closer to my work at the moment - likely could walk to work, but there aren't any another major employers in walking distance
- will probably be easier to sell in a couple of years
CONs
- these houses are flying of the shelves at the moment
- the town is small and not as lively as London, but I guess we could go to London over weekends (my DH will go there for work on some weekdays)
- if I move to another position I'd need to get a car and I don't like a car commute (compared to a tube/train commute where I can chill on my phone)
- keep renting (least favourite but potentially best financially) - rent in Hertfordshire (cheaper than London Zone 2) and if I move to Berkshire, rent there.
PROs
- renting is cheaper by £200/month then buying once all transaction costs, maintenance costs... are taken into account
CONs
- we'd prefer to have control of our living place, property prices are likely to rise
About us:
I work in manufacturing in Hertfordshire, while my DH works in Central London. His workplace is flexible with return to work (eg. 2-3 days a week in the office).
I am likely to move jobs - so it would make my commute impossible if I found something eg. around Slough, Maidenhead...
Currently we are renting in Zone 2, London with good train links.
I commute to Hertfordshire but might have to commute to Berkshire for a new role.
In 4-5 years we are likely to start a family and move to my DH homeland in the EU where there are more maternity and childcare benefits along with good career options for both of us.