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?

@Paddingtonthebear

We are trying to get on the ladder and have considered buying a flat. The thing that concerns me is the price of flats here is pretty peak at the moment. If we buy now when everything is top dollar there’s a pretty good chance we won’t get back what we paid for it when we want to try and move on to a house in a few years and then we are stuck. Plus flat maintenance fees. It’s tricky.

Yes the dreaded maintenance fees. Though I will be trying to look for something like a 2/3 story no big communal grassy areas that require maintenance, not like that will stop charges though. Good luck with whatever you decide, it's always a chance isn't it.

@Lweji

I did. It needed some work. Then we sold and bought a house. My salary had gone up by then, and better to pay to own property than to a landlord.

But research the area.

Thanks for your advise and for sharing your experience @Lweji

Luv2chat2U yes I do miss London. Hopefully if you had affordable trainfares that would make all the difference though!

[quote amiadillo]This is a good article

www.google.co.uk/amp/s/amp.ft.com/content/5c49931e-9ddd-3db3-8a67-3fc2bc18f0d2[/quote]
Thanks for the link @amiadillo. Can't access this, i think i have to subscribe. I'll look into this later.

oh sorry i thought it was free. I don't have a subscription

I agree that flat prices probably can't get much higher in London. However, if you buy somewhere a bit dated and modernise (not necessarily a complete expensive overhaul), the value will rise, even if it just a bit.

Honestly it sold within a couple of weeks, and I had several offers. It was tiny but I was so proud to have it. I don't think it would have been any easier if it had been a house. Everyone has to start somewhere!

What's your budget OP? Perhaps the MN collective can help you track down a hidden gem.

@Luv2chat2U 5.5 years.

I won’t lie, I posted on here when we made our offer on it and got a lot of replies that flats weren’t a good investment and the property market is dying and I wouldn’t make enough back; as any value my flat gained wouldn’t match what houses made… I was pretty scared I’d made a mistake!

But my flat has appreciated fine, and I’m now moving from a low mortgage (3x less than the rent I used to pay) to a medium mortgage; from a one bed flat to a three bed house with a loft conversion that we can get signed off if we want to. The flat value has gone up loads, it’s worth more than double now, and I’m moving to a house with no additional help from parents or anything.

I did look at lots of flats. This one is big and spacious, communal garden but outdoor space and lots of nearby parks, low services fees, low ground rent, nice neighbours. I’ve been really happy here. If I could make it work, I’d stay. I’ve dreamed about buying upstairs and putting stairs in for a long time

Covid has reduced the gains made, like I said, we had an offers for £25k more in April last year but the buyer was furloughed and we didn’t want to list and sell again in the thick of lockdown.

It’s always a risk; and I’d buy somewhere that you’re happy rather than aiming for somewhere that’ll make money, but I do think there’s an odd attitude to flats here; perhaps because the average income of members here is a lot higher? But I’m glad I did it. It’s worked out really well for me.

I strongly debated keeping my flat and letting it out, it’d let for 4x the mortgage payment, but I’ve got enough on my plate at the minute without learning to be a landlord! And I’m selling to a lovely guy who is a FTB looking for his first house; and that’s quite sentimentally nice!

I can’t say it’ll work out for you, but I wouldn’t rule flats out overall. I’d be more concerned about being priced out completely than flats not appreciating, even post Covid.

Absolutely! Buy when everyone else is selling. The market in london for flats is now flat so buy now! We wont always be in a post pandemic situation and you will get a great deal. First time buyers always buy flats in cities. Try and get a period conversion. Much better than wasting money on rent and paying someone else's mortgage. Over time property always goes up and as you pay off your debt your deposit for the next place increases. Do it now when you have good bargaining power!

@millypeggyandpandora

I used to go to Stevenage for work. Its not very nice at all, with nothing much to do there either. Please don't leave London for Stevenage OP!

The old town area is actually really nice and there are plans to renovate the main town centre over the next few years so I think it could be a really good investment. Prices are SO much cheaper than the other surrounding towns but expected to rise.

Surely it really depends on you and what you consider important?

I absolutely hate long commutes. It's draining, expensive and a waste of time, and trains in this country are not that reliable and can be overcrowded. I also hate the idea of depending on one train line and if there's some problem with it, you're forking out £100 on a taxi or staying in London overnight. I live and work in London and my current commute is 40 minutes door to door, which I consider excellent. I have more than one option when it comes to trains, and if the entire line is down, I can get one of a number of different buses or an Uber. I can even walk home from the office in about an hour 20 minutes...not a daily thing but I can and do walk it sometimes....no chance of doing that if you live in Margate or somewhere.

I'm not particularly young but I am single and still enjoy going out regularly and so a long commute back late at night wouldn't suit me at all. I'd consider moving city altogether, but I don't think a commuter town would work for me for the above reasons. I have colleagues who are settled with partners and/or much more introverted with home-based hobbies and they're very happy in places like Hitchin or Leighton Buzzard. They don't want nightlife and endless things to do - they would rather just have a nice house and spend most of their time in it, so that works for them.

I think it's a lot more than a financial decision...no point living somewhere just to have a house if you're miserable as sin there! Loads of people buy flats as FTB in London and have never heard of anyone really regretting it!

Depends what you want in life
Buying is more than a ladder
Where you want to live
Your needs
Where you work
Flats are usual in London
Victorian conversions
Small blocks
Mansion flats
All nice

Might be preferred lifestyle to small house in thamesmead

I don’t think I know anyone who didn’t start off with a flat. It would be rare to afford a house as a first property.

@Luv2chat2U - what is your budget? Have you tried DA15/DA14?

Or Erith, Swanley, St Mary's Cray? Granted, not the nicest or most happening of areas but easy to get to central London and all the usual shops etc.

What sort of budget do you have?

We have a flat, its our forever home, it has three bedrooms, courtyard and its very big, all the bedrooms are large doubles, the main bathroom is big enough to be a 4th bedroom, to get a house of the same size in the same area would be around £1.4 that is insane.