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silentwatcher

Advice Please!

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Hi, First post and that so go easy please!!

I'm thinking of buying a 1 bed flat to stay in Newcastle with my girlfriend and am wondering if people expect prices to fall continuously or have they bottomed out?

I realise that there are a multitude of newish flats out there but have found a good sized one for 90kish, in a student area, (i work away on shifts so want the place to be busy so my girlfriend is safe whilst I am away). Is this a reasonable price or am I better renting with her?

Currently only seen 1 bed rental flats circa 500-600pcm but reckon I could get a mortgage for 480ish.

Thanks in advance!

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1888   

can u afford the mortgage if it goes up to £600 ish ? or higher

sounds a lot for a 1 bed in N'castle

keep an eye on auction prices to get a true picture of market value

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Hi, dont know about the prices in Newcastle but I agree with the other poster that it sounds a bit high, just take your time and view lots to get an idea of what youre getting for your money, remember that its your money and no one is doing you a favour its business. As a foot note one beds arent the easiest to resale (2 beds are) because of the dreaded BTL vultures (one parent/starter families. good luck to you and your Gf .

Hi, First post and that so go easy please!!

I'm thinking of buying a 1 bed flat to stay in Newcastle with my girlfriend and am wondering if people expect prices to fall continuously or have they bottomed out?

I realise that there are a multitude of newish flats out there but have found a good sized one for 90kish, in a student area, (i work away on shifts so want the place to be busy so my girlfriend is safe whilst I am away). Is this a reasonable price or am I better renting with her?

Currently only seen 1 bed rental flats circa 500-600pcm but reckon I could get a mortgage for 480ish.

Thanks in advance!

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Thanks for the advice and quick response!

I'll have a better look into the auction side of things,I never even thought of trying there,cheers!

With regards to other properties, I have looked in a few places but they either don't have parking ( I was told this can be an issue in Newcastle and would affect re-sale) and are around the same price, or they are in not so nice areas, or areas which I would be happy with her walking back by herself. The area she lives now (jesmond) is really nice but out of my price range unfortunately. I shall widen my search to other areas though and look closer for a second bedroom as well.

Cheers again, a new avenue has opened up!

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Thanks for the advice and quick response!

I'll have a better look into the auction side of things,I never even thought of trying there,cheers!

With regards to other properties, I have looked in a few places but they either don't have parking ( I was told this can be an issue in Newcastle and would affect re-sale) and are around the same price, or they are in not so nice areas, or areas which I would be happy with her walking back by herself. The area she lives now (jesmond) is really nice but out of my price range unfortunately. I shall widen my search to other areas though and look closer for a second bedroom as well.

Cheers again, a new avenue has opened up!

First I know little about the newcastle property market, so take what i say with a grain of salt.

It does sound a little pricey, however relative to what else is out there, it may be a relative good buy. Good parking and near the university are very big pluses. 1 bedroom as opposed to 2 is a minus. As a couple it is cometimes good to have bolt holes that you can retire to when you need space, which is difficult in a 1 bed and impossible in a studio.

Is that 480pcm interest only or repayment?

My other question to you would be, what sort of level of repayments could you cope with? 600 pcm, 800pcm, 1000pcm? Make sure you consider the future interest rate possibilities, and make sure you get a long term fix.

Also note that for the 600pcm rent the LL will probably be paying the body corporate annual fees (how much are they?) together with repairs and maintenance. From an historical perspective, a professional LL working on 8% would value a flat renting for 600pcm at 90,000 so provided rents hold up, it isn't a ridiculous risk. The problem is, will rents hold at 600pcm over the next few years? At 400pcm the flat would be valued at 60k. Is the flat in a block owned by the council? There have been cases in London where people have been hit with stupid bills by the freeholder (i.e. council).

Personally, I'm a bear on real house prices, but nominal is something I am unsure about. Whatever the case, even if you sold the flat at a 50% loss at some stage in the future it would only be a 45k loss - which it is possible to recover from, especially if you are young.

Basically, the flat doesn't scream no at me, but it doesn't scream yes either. You'll obviously have a better feeling for the area than me.

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meow   

Buying a 1 bed flat in newcastle as we are about to enter a period of unprecedented de leverage in the economy and decreased government spending.

I would say renting might be an idea, but really depends on your circumstances.

Edited by meow

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The 480pcm is repayment and it has a maintenance/ground rent of just under £100pcm. Compared to other flats we have looked at, the size is good, the area is good but I realise there is a ceiling to what a 1 bed can achieve. There are some on the market touching the 180k mark which I think is a crazy price to pay!

I feel the exposure to a negative market is slightly reduced at the 90k mark and as previously said, a 50% loss at this point will be a big loss but recoverable!

Thanks again to everyone who replied!

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meow   

The 480pcm is repayment and it has a maintenance/ground rent of just under £100pcm. Compared to other flats we have looked at, the size is good, the area is good but I realise there is a ceiling to what a 1 bed can achieve. There are some on the market touching the 180k mark which I think is a crazy price to pay!

I feel the exposure to a negative market is slightly reduced at the 90k mark and as previously said, a 50% loss at this point will be a big loss but recoverable!

Thanks again to everyone who replied!

Have you considered the re-saleability of a 1 bed flat at the bottom of a crashing market, should you decide to trade up?

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