Should I buy a tiny, less-than-ideal flat?

[vickster]

Another potential negative is how quickly could you outgrow it if it's really small?

 

[HobbesOnTour]

it doesn't seem utterly terrible

Have you missed your true calling as a real estate agent?
I mean no disrespect but is that really a description that you want to apply to a place you intend to live in for a long time?

On the other I worry about space, energy costs and the lack of sunlight.

There's something you can do about worry. You can work these things out.
I'd imagine the big thing is space if you want to be storing bikes. I'd suggest (as boring and dull as it sounds) sitting down and drawing a floorplan and seeing where the bikes will go. You might fit them in but will you be forever jumping around them? Will you be able to work on them?
It may take some looking but I reckon you could find out an approximate level of energy usage. Then stress test that on price increases. What does a 5% increase do to you? 10% etc.
Is there any kind of survey done? Do you know anyone who could point you in the right direction? Are energy ratings done in the UK?
The lack of sunlight would bug me. However, is there any outside space?

When I move it really needs to be somewhere I'm going to be happy being for the long haul as I earn sod all

So again is not seeming to be "utterly terrible" good enough?

I did consider going in really low on the asking, but want to keep the agents on-side

Feck that! It's your money.
Do it on a few properties and you may have a point. On one? Not so much.

I have a fairly specific set of criteria (such as ideally direct, ground-floor access so I can keep my nicer bikes inside) which rules out a lot;

Nothing wrong with that. Trading off too many criteria just to have your own place may well not be a good idea in the long run.

You haven't mentioned job security or your employability if turds start hitting fans. For securing a mortgage I'd have thought that's a big one. Can you get mortgage approval in advance of up to X amount?

A couple of random thoughts......
If you end up hating the place, or trading up, the things you don't like about it now will (and are) making it hard to sell.
However, what kind of rent could it generate?

Manage your worries a bit and research all the expenses, not just utilities but insurance (and mortgage insurance) and any other services or taxes that you become liable for as a building owner. Stress test that in relation to a downturn at work etc.
Maybe talk to the neighbours for a bit more information. You never know what you might find out.

If you could make it cost neutral (as in the money you're currently saving being spent on rent) then renting a place may not be a bad idea purely from your personal point of view by getting back to where you want to be.

This is going to be your home.
And you say you will be there for the long haul.
If you decide to wait, a month, six months, a year even, isn't a long time in terms of what you are buying and for how long.

Good luck

 

[ClichéGuevara]

There's always London.

 

[KnittyNorah]

As many of you will know from my incessant bleating, I'm currently (at north of 40) living with my mother post-long-term-relationship-collapse, and dreaming of buying a flat in Oxford so that I might return to the simple, low-outgoing, cycle-centric lifestyle I crave to maintain my mental and physical health.

I'm lucky enough to have a reasonable deposit (thanks to years of saving and a not insubstantial contribution from the old dear) and have been watching the market for years. Recently (thanks to failling prices / changing sentiment / gradually growing savings) my goal has seemed increasingly achievable; if always a stretch.

A while ago I viewed a flat that's been on the market for ages. Decent part of town (if far out), secluded, small development.. on the down-side it's tiny (37m^2) with minimal storage space, has electric heating and seems very well shaded so I suspect would be quite cold and dark.

I declined to make an offer on it as I decided it was a bit too compromised and I'd subsequently seen something else that looked like a better bet (if more money so a stretch). I made an offer on the latter flat and had it rejected, since another party has apparently offered more. I'm on the fence as to how to proceed as I could potentially offer more myself, but it'd been debt up to the eyeballs and burning my intended slush fund; leaving me open to a fair amount of risk...

Back to the original flat - if I could get it for what I think is a fair price (a lot less than asking and funnily enough about the same figure the agent reckoned it was actually worth) I'd need a tiny mortgage, so I'd largely avoid all the potential risk of debt exposure in the current climate.

On the one hand I'm desperate to move out and it doesn't seem utterly terrible, even if it's tiny. On the other I worry about space, energy costs and the lack of sunlight. When I move it really needs to be somewhere I'm going to be happy being for the long haul as I earn sod all so will struggle to save once I've moved out. If I wanted to move after buying it would incur all the usual costs all over again.. plus might expose me to stamp duty depending on how government policy pans out in future.

As it stands other than my spiralling mental health / in practical terms there's an argument for sitting on my hands as flat prices in the city have been slowly drifting down for years, while the wider market is taking a hammering and while at home I can save a reasonable amount each month. That said, stuff is still selling (if slowly / at less than asking), much coming to market appears to be the dregs of ex-BTL property and who's to say what will happen to the wider market in time.

This is really no fun as it's all on me since I'm buying on my own and I'm crap at making decisions at the best of times, so I'd be interested to hear what people reckon..

Ta

Don't discount 'electric only' especially if you are thinking in the longer term. I am waiting on a vacancy in a specific retirement block which is 'electric only'; other residents have told me what their bills are (not in the slightest bit horrendous).

Think about why there is a lack of sunlight - is it north facing, are there overhanging trees, bushes, buildings ...?
Some things can be compensated for, some can't. Lots of white paint, light coloured flooring and pale coloured soft furnishings can do a great deal to brighten a place up; one of my neighbour's front rooms face due north and I have never noticed any lack of 'light' in her front room but everything in it is light-coloured, apart from a few splashes of colour in cushions. OK it takes longer to get warm as it has no actual sunshine but as a counter, it was lovely and cool in the heatwave last year!

 

[PaulSB]

"Should I buy a tiny, less-than-ideal flat?"

This is the title you put on your thread. Do you really need an answer?

No, obviously not. Three points.

• You don't really like the place.
• Determination/desperation to move is driving this.
• It's been on the market a long time. Other viewers think the same as your title. You would struggle to sell on.

Do not buy it. It would be a big mistake.

 

[SpokeyDokey]

Avoid - you don't sound keen on it right now. Can't see how you are ever going to be happy with it.

 

[Jameshow]

Also how's you mums health.

Not being morbid but will you soon spend more time looking after her rather than being in a flat your paying for?

When she passes will you inherit anything to allow you to buy the flat you really want or need?

Also if you find a new partner will they be happy in your flat? Maybe finding somewhere together might be more constructive??

Just a thought?

 

[steveindenmark]

I am in my 21st house and so have been in your position several times. My advice is do not buy anything that you cannot walk into and feel immediatley that it is home.

Most of my purchases have been to buy, renovate and sell on.

The house I have now was bought as a home and was decided by looking in the windows. 18 years later it was still the right decision.

 

[cyberknight]

I am in my 21st house and so have been in your position several times. My advice is do not buy anything that you cannot walk into and feel immediatley that it is home.

Most of my purchases have been to buy, renovate and sell on.

The house I have now was bought as a home and was decided by looking in the windows. 18 years later it was still the right decision.

we have moved house a few times all because mrs ck decided where we living is the problem with life, not the fact she likes to spend us into debt every time and shes not a happy person ,We are now pretty much at the bottom of the ladder for a house big enough for us and cant afford to move even if we want to ,
Dont take it if your not sure or regret at your leisure

 

[Kingfisher101]

No. I stay where you are until you find a more suitable property that has gas central heating and is suitable for your needs.
I would not personally private rent by yourself with a small income when you can stay at your Mums. How old is your Mum? you might get her house or an inheritance at least soon and then your options would change again.

 

[alicat]

I'd say sleep on it and go with what your gut says as soon as you wake up. It does sound like you aren't keen and you will 'know' when you've found the right place.

 

[annedonnelly]

In your title you describe it as "less than ideal" That sounds to me like you don't really like it. Buying property is a big commitment, especially if you buy now and then prices drop further. I think you should give this one a miss.

 

[wafter]

Could you rent until you find the right property to buy? Would get you back your independence and put you in the area you want to be

Thanks - although tbh renting's right off the menu as I earn very little, it would put an absolute stop to saving even if I could afford it, and tbh I think I'd fail the affordability checks in any case. Even a very ordinary room in a shared house is ballpark £600/month, which is currently more than I'm managing to save.

I had a small flat 30 years ago - It was very bad for my mental health. The £300 annual maintenance charge seemed ok when I took it on - the 'extraordinary event' of painting the flats arrived a couple of years later, and they wanted 2k from each of us, and the annual charge had gone to £500 as well. It was rapidly becoming a money pit over which we all (the residents of only 24 flats) had no control. So I wouldn't want anything leasehold again. We had no support from the mortgage providers and we were being royally ripped off - eventually I handed the keys to the Bank!. I know my reaction is extreme, and maybe not typical, but I'd suggest you look at all costs involved - the oft-quoted 'ground rent' seems to be the focus of many, but is generally a 'peppercorn rent' of a few pounds a year, which is generally fixed forever - it's the spiralling maintenance costs and any 'extraordinary' ones like a roof 'needs replacing' (even if it doesn't?) or (in the case of many hi-rise ones) which have been given bills for £many thousands to remove cladding which they probably paid to be installed in the first place.

Thanks and sorry to hear of your situation - that can't have been pleasant

Unfortunately all flats operate on some form of ground rental scheme, and I absolutely can't afford a house so that's unfortunately off the menu.

There's a heirachy in my head regarding costs associated with flats - at the very bottom are leasehold with short lease terms remaining - typically whatever's left of the 125yrs given when they were built. Lease extension appears to be a circle of hell all of its own and something I won't entertain; while once the remaining lease gets below about 80yrs it starts to severely affect the value of the property.. so again not something I want to be part of.

Next up are leasehold with long terms remaining; that typically started at 999yrs from build. These tend to be older / smaller developments. It seems that all leasehold stuff is subject to additional management fees (20% of total service charge, according to one breakdown I read) so as usual there's a middleman with his hand out for doing next to naff all.

Finally the gold-standard appears to be share of freehold - 999yr terms and the complex managed as a whole by a resident's group; meaning no middlemen skimming off the top of the service charges. There are a few of these around but not a lot..

I agree about the "extraordinary costs" - although unfortunately there's not a lot to be done to avoid these; other than due dilligence when buying (relative to property age, type, design elements such as flat rooves and location elements such as flood risk). It seems the typical service charge is around £1k+, although I've seen some that are significantly more.. one across the road from where I used to live looks quite appealing, however it has flat rooves and regularly floods - service charge was £3.2k plus the potential for a hike to cover the cost of roof replacement!

Thankfully I'm not really in the market for a high-rise, so cladding's on of the few non-issues

Well the minimal storage isn't much of a downside, as you can store stuff at your mothers I assume?

heating system ca be changed, but at a cost. although bear in mind flats are much cheaper to heat than houses as your neighbours are keeping the floor and ceiling warm for you!

Obviously you need somewhere to store your bike(s)

Light is important to the feel of a place, you need a place somewhere in the flat where you can sit and be happy. location / neighbourhood is also important

When I moved post divorce the house was a compromise, but then I had to move and it was the best I'd seen, and I had a cracking man cave / bike shed built in the garden which overcame some of the lack of storage issues.

You at least have the luxury of biding your time at your mothers.

There is always demand for property in oxford, because of the size of the city, amount of students etc. so whilst you might not buy at the bottom of the dip, you aren't going to be left with a lemon.

ultimately its your decision but those are some thoughts....

Thanks!

You're right about the storage to a point and I'm striving for a minimal lifestyle; however everyone has their limits and needs somewhere to store the basics - which I think might be difficult in this case.

I'd not want to budget for a change of heating system (outside of electric; gas is falling out of favour and there's minimal space for a boiler / all the plumbing). Fair point about the cost of heating; on the one hand the minimal floorspace would be a boon in this regard, on the other the flat actually has a lot of exterior walls (which again face away from the sun and are well-shaded) so it's unlikely great from this perspective.

The plan with bike storage would be external shed for the pub / utility hack, with one or two nicer bikes stored in the flat.

I agree about the light; tbh on the day I viewed it was very grey and overcast, however with the aspect and tree cover I doubt it would be much better even in much sunnier conditions; which worries me from the perspectives of both heating / lighting cost and mental health.

Neighbourhood is fine so there would be no issues in this regard.. I bet your post-divorce mancave probably wasn't much smaller than this entire flat

Of course you're absolutely right about biding my time - I'm lucky to have somewhere to go that's not costing me £1k+ per month, even if my being here isn't conducive to the mental health of anyone involved.. so from this angle the sooner I can get out the better. At least the wider circumstances seem to be going in the right direction.

I agree with what you're saying about Oxford, however one also has to be realistic and it certainly seems that this seller is going to take a significant haircut on what he paid, whoever buys it!

 

[EltonFrog]

This is not a decision to take lightly, I certainly wouldn’t be asking a lot of strangers on the internet about spending hundreds of thousands of pounds on a property they will never see.

If you really need someone to advise you take a friend you trust to see the property and discuss it with them.

 

[Jameshow]

This is not a decision to take lightly, I certainly wouldn’t be asking a lot of strangers on the internet about spending hundreds of thousands of pounds on a property they will never see.

If you really need someone to advise you take a friend you trust to see the property and discuss it with them.

Any work colleagues you could take must be a few who are properly/ investment savey?
Pass it by them?