Would you buy a flat to get on the property ladder?

[Luv2chat2U]

Hi all,

Would really appreciate your advice.

Born and raised in London and lived here all my life, work, friends and family here too.

Want to get on the property ladder but at the moment the market seems at a standstill. Either that or my budget isn't enough. Currently when searching Essex or Kent, my budget will only allow for me to buy a house in Ipswich, Dover and just about Gillinham (don't know these areas). But I can purchase a flat a little closer (not in london but closer than the above mentioned areas).

Do I gamble and hold off (currently renting but low rent) and wait for changes in the housing market (if any) or buy now? and if so

Would you buy a flat to get on the property ladder or a house further out?

I think a flat is fine as long as there is plenty of time on the lease (most will be leasehold) and there are no escalating costs involved, like service charges that go up by what may initially not look like much but adds up. I'd always try to go for two bedrooms if at all possible as then you have so much more flexibility for life and it will be easier to sell on. For first homes, always consider onwards saleability - is anything planned for the area that might make it more or less desirable, for example?

@KingdomScrolls

I bought a flat a twenty minute walk from a mainline station into a main London terminal, in Essex, under 30 minutes station to station. Made a very good profit after five and a half years and used it to put a good deposit on a house. One open morning multiple asking price offers, lots from other Londoners priced out like me. I now live out on the coast but it was a great first step

Thank you for sharing your own experience. Location and accessible commute to London is definitely key. Glad it worked for you. Hope you're enjoying the coast.

I bought a flat in Essex as we couldn't afford a house. Just in the process of selling it now, and it will be the deposit for a 4 bed house.

So in short, yes I'd buy a flat.

@Echobelly

I think a flat is fine as long as there is plenty of time on the lease (most will be leasehold) and there are no escalating costs involved, like service charges that go up by what may initially not look like much but adds up. I'd always try to go for two bedrooms if at all possible as then you have so much more flexibility for life and it will be easier to sell on. For first homes, always consider onwards saleability - is anything planned for the area that might make it more or less desirable, for example?

Thank you @Echobelly very good advise. I definitely have been doing research as sometimes its the underdog areas that have great investment plans. However, at the moment the areas that I can stretch to don't appear to have any significant plans.

@starpatch

Stevenage may be worth considering as flats are reasonable and the trainfare into London is also reasonable.

@starpatch Thanks! I will definitely look at Stevenage as commute fees is an essential factor.

@OneRingToRuleThemAll

I bought a flat in Essex as we couldn't afford a house. Just in the process of selling it now, and it will be the deposit for a 4 bed house.

So in short, yes I'd buy a flat.

Thank you for advise and sharing your own experience @OneRingToRuleThemAll

@Bathshebahardy

As a Londoner, it is surely normal for most people to buy a flat as a first time buyer. Any changes in the housing market are likely to be prices going up. Prices do occasionally drop briefly but always go up in the long term. I would look for a flat in commutable distance. Lots of people do commute from Gillingham/Medway towns so that is possible if you desperately want a house.

@Bathshebahardy agree, it's definitively not uncommon, most of my friends and acquaintances started off in flats so definitely says something. Yes house prices certainly don't appear to be coming down so waiting could limit my opts even further. Thanks for your advise.

What's this issue with flats? Every single person I know, bar one (who bought a house with FOUR friends - nightmare) bought flats to get on the housing ladder. I owned five flats before I bought an (ex council - ooooo) house.
You make sure the lease is a decent length and that service charges are competitive and not going to double every five years or whatever. Then it's the same as buying a house - location location location. I've sold two flats in the last year with no issues, one to the first viewer. The only time you may have difficulty selling is if the area is mostly families and dominated by houses.
Every one of the above mentioned people now owns a house.

@TakeYourFinalPosition

Yep. I bought a flat as our first place. We’ve just sold it. It’s gone up by over £100k, if we’d sold before Covid, it’d be £130k, so financially it’s been a sound decision, and personally it’s been a lovely place to live and if I could, I’d hold onto it.

It’s an old conversion, but well done. The neighbours are nice, the location is good, the service charges and maintenance costs are low. It’s only got a communal garden, but that’s been no problem either, really.

I’d hands down do it again.

@TakeYourFinalPosition, thanks for sharing your own personal experience and nice to hear of the positives. How long did you live there for before selling?

Yes. I bought a house and then sold it to move into a flat! It's not a step on the property ladder for me though, it's my home and I genuinely love it. I do have a a garden though and only 4 flats in the block so it's more like just having a bungalow I guess

I bought a flat in London. It doubled in price within 8 years & I sold and bought a lovely house.

I wouldn’t even be on the property ladder now if I’d just waited to afford a house.

@maofteens

What's this issue with flats? Every single person I know, bar one (who bought a house with FOUR friends - nightmare) bought flats to get on the housing ladder. I owned five flats before I bought an (ex council - ooooo) house. You make sure the lease is a decent length and that service charges are competitive and not going to double every five years or whatever. Then it's the same as buying a house - location location location. I've sold two flats in the last year with no issues, one to the first viewer. The only time you may have difficulty selling is if the area is mostly families and dominated by houses. Every one of the above mentioned people now owns a house.

@maofteens, thanks for sharing. Yes my friends also started with flats to get on the property ladder, but more and more recently people argue that flats are difficult to sell, ongoing issues with service charge etc. I have said if i did go for a flat I would look at something like a conversion, maisonette nothing with huge communal area's due to service charges though i know it is not solely to do with outdoor space. Any advise welcomed.

If first time buyers in London refused to buy flats to get on the ladder they’d just be sitting in rental accommodation until they were 45+.

It’s quite ridiculous to suggest that it’s a bad idea for first time buyers not to touch a flat under any circumstances.

@FrownedUpon and @NotMyCat Thank you both for sharing your positive experiences.

@SmidgenofaPigeon

If first time buyers in London refused to buy flats to get on the ladder they’d just be sitting in rental accommodation until they were 45+.

It’s quite ridiculous to suggest that it’s a bad idea for first time buyers not to touch a flat under any circumstances.

Hi @SmidgenofaPigeon, thanks for your input. I've seen some beautiful flats and seriously considering. London and even outskirts are just too expensive so it's decision time.

We’ve actually just bought (survey pending) a flat in zone 5- that’s what we can afford- we don’t want to leave London. It’s not a new build but it’s a quiet area, purpose built block. How can that not be preferable to

a) paying the extortionate rent we do currently

b) packing up and leaving London where our jobs are (and DH was born)

No brainier. I think it’s madness for people to write off costs a first time property purchase and they’re not seeing the bigger picture.

No I wouldn't, it's very difficult to make enough money to move up the ladder now as everything else also goes up & moving is expensive. Whatever you buy needs to be something that you can stay in as long as possible.

What about another city or a house on the outskirts of London?

@SmidgenofaPigeon

We’ve actually just bought (survey pending) a flat in zone 5- that’s what we can afford- we don’t want to leave London. It’s not a new build but it’s a quiet area, purpose built block. How can that not be preferable to

a) paying the extortionate rent we do currently

b) packing up and leaving London where our jobs are (and DH was born)

No brainier. I think it’s madness for people to write off costs a first time property purchase and they’re not seeing the bigger picture.

@SmidgenofaPigeon congratulations!!! I'll be not long behind you I think, as I've been procrastinating for so long that I am now out-priced.

Also- it’s wrong to assume that couples who buy a flat will ‘need’ to move out and up to a house- we don’t all have the same life plans. for us there’ll be no need for multiple bedrooms for multiple children.

We bought a flat & made money on it but that was 15 yrs ago, times have changed imo

Good luck OP! Hope you can bite the bullet soon!

Most people I know who traded flats for houses in London either moved further out or had big increases in salary &/or help from parents.

@amiadillo

No I wouldn't, it's very difficult to make enough money to move up the ladder now as everything else also goes up & moving is expensive. Whatever you buy needs to be something that you can stay in as long as possible.

Hi @amiadillo Do you mean no you wouldn't buy a flat or you wouldn't hold on?

@SmidgenofaPigeon

Good luck OP! Hope you can bite the bullet soon!

@SmidgenofaPigeon Thank you, much appreciated.