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laura122

I Am Buying - A Small Flat In A Nice Area Or A Bigger One A Bit Further Out

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

Hedge your bet on a one bed in Muswell Hill. ;)

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

I'd wait 2-3 years and then if you are still in a decently paid job get a big flat in a nice area. Buying now - IMO - is just chucking your dollar down the drain.

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Hedge your bet on a one bed in Muswell Hill. ;)

I went to wood green once, it felt like a mixture of kosovo and the less pleasant bits of johannesburg.

any help?

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I'd wait 2-3 years and then if you are still in a decently paid job get a big flat in a nice area. Buying now - IMO - is just chucking your dollar down the drain.

I agree waiting will do you no harm, in fact by waiting there is a high chance you will be buying cheaper in 2 to 3 years...we all have a life to live and the important word is cash...renting costs money, and money is for spending...when you have spent it you have lost it, while you are earning it you can accumulate it it. ;)

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I went to wood green once, it felt like a mixture of kosovo and the less pleasant bits of johannesburg.

any help?

Nothing wrong with Wood Green if you take it for what it is...the great thing about that part of the world is it is so diverse, cosmopolitan and interesting, every corner you turn is like walking into another world. ;)

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

Which one would you go for?

Neither.

Expand your thinking,

beyond the UK,

holding sterling,

& your job trap.

(unless you could not bear to leave it?)

Otherwise your decisions are probably fear driven, which is an unfortunate UK trait.

Edited by Laura

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I went to wood green once, it felt like a mixture of kosovo and the less pleasant bits of johannesburg.

any help?

I have to agree, I used to live in various parts of N London, quite close to Wood Green, and passed through on several occassions. Wood Green has very high levels of crime against the person, robbery and burglary. Several people I knew were victims, including a burglary. Straying off in an easterly direction you could be forgiven for thinking you've woken up in a township.

Highgate on the other hand is a desirable middle class location (assuming it actually is Highgate and not Upper Holloway etc).

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Laura, you have a good amount of money in savings. The important question is: can you afford to buy? if the answer is yes, then go ahead. Just get on with your life. My guess is as good as anyone else's, but I'd put good money on there not being a huge drop in prices in two years time that makes it worth hanging on. I went to Wood Green a month or so ago and it wasn't as pretty as Highgate, but bits of it were nice enough, and access to central London was pretty good. Get some decent space for your money.

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I can't imagine why you would be unable to wait to save yourself paying more money than you have to.

Also, I think if you could afford a house, rather than a flat, preferably a detached or semi with a bit of land, then that would be better value.

I'm also perplexed as to why you should be limited to a choice between 2 properties.

I don't think that I would ever buy a flat. They're ok for renting, but buying a flat can lead to problems. I just left a flat where water came down into the bathroom about 2 or 3 times a week. The landlord did his best to remedy it, and I know he is a good landlord, but the problem persisted. It was the landlord who found me a nicer and cheaper flat with no such problems. But had I owned the flat, moving would not have been an option, or at least a not an easy one. Usually with a flat, you only own a lease, which imo is not really owning it.

Anyway, good luck in whatever you decide.

PS I've just noticed that you are a newbie, so that dispels some of my perplexity. I did, actually, confuse you for a while with Laura, she of the witty thread creation, who responded before I did.

Edited by Fly by Night

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I wouldn't buy a studio flat. I also wouldn't live in Wood Green. If you do buy a studio flat and property falls further you will find that no-one will buy it. I remember previous crashes being an old git and you just couldn't give them away. I think you ought to consider that a. property prices in London are still far to high and/or b. you haven't yet got enough money.

If you think 5 years is a long time I have friends who took 12 years to pay off their negative equity after being repossed and that included a 10 year stint tax free in the Middle East.

It's your cash so good luck.

Edited by uro_who

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If it were me I would buy a two bed in the best area possible that is convenient for work, I would rent the second bedroom out to a friend or someone you get on with and can go out with and have a laugh with..I would then save what I could whilst still enjoying myself etc....then when the prices have dropped I would jump at a freehold. ;)

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

Buy a place in the 250 to 350K range in the better area with a mortgage to make up the difference.

Prices are not going to go much lower in nominal terms from here.

Get an offset mortgage and perhaps keep back 20 to 50K of your 200K cash deposit for emergencies..

Edited by Mammon

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Buy a place in the 250 to 350K range in the better area with a mortgage to make up the difference.

Prices are not going to go much lower in nominal terms from here.

Get an offset mortgage and perhaps keep back 20 to 50K of you 200K for emergencies..

I disagree...savings and other investments today will grow faster than property, if you are mortgage free invest what you you would have thrown away in debit interest and depreciation in better and more forward thinking ways. ;)

Edited by winkie

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

I'd wait a bit longer, and get a 2 bed flat in Highgate.

I suppose the only advantage of a cash purchase now is that if you lose your job, the flat with no mortgage wouldn't count against you for benefits purposes, whereas £200k in the bank would. Then it is a matter of choice. Studio Flats don't sell well, and places in bad areas don't sell well, though I don't think Wood Green is bad enough an area to be a problem in that respect.

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I'd wait a bit longer, and get a 2 bed flat in Highgate.

I suppose the only advantage of a cash purchase now is that if you lose your job, the flat with no mortgage wouldn't count against you for benefits purposes, whereas £200k in the bank would. Then it is a matter of choice. Studio Flats don't sell well, and places in bad areas don't sell well, though I don't think Wood Green is bad enough an area to be a problem in that respect.

By then your life would have passed you by. ;)

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Bermondsey SE1 ... 300-350k get something fairly decent ....everything on your doorstep...walk to the city...

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A very good friend of mine bought a studio in Notting Hill about the time of the last crash - paid a lot for it too.

Once prices were going down nobody would even look at it, the bottom completely fell out of the tiny places even in "desirable" areas. Took him well over 10 years to be able to get rid of it, during which time the leasehold was taken over and he was slapped with a service charge that would almost have paid the rent on a similar place at the time.

I suspect larger places in undesirable areas also suffered a similar fate though I can't recall anyone who had one at the time.

If he'd have kept it he'd have been ok(ish) by now, but after a decade of being stuck with (literally) the same 4 walls he hated the place more than you can imagine!

Good place to visit for carnival though :)

200k is a lot of money, you have to ask yourself if a single room on a leasehold is really worth it, do you not?

Personally I'd wait it out for a couple of years, only the most fervent property bulls are forecasting strong rises over that period, pretty well everyone else (even the prices will rise forever crowd from 2006/7) are saying it'll be pretty flat at best as far as I can see.

So I doubt you'll lose out by staying out of it.

That's what I'm doing, your own decision is of course entirely up to you!

Good luck.

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OK folks - I just cant wait any longer - I ve been waiting for 5+ years now and have 200k cash.

I m 27 years old single and have a steady job paying a decent salary.

I am thinking of buying a place now - I have a choice between a small studio in Highgate London or a two bedroom flat in Wood Green

Highgate is a much trendier area but the flat is very small

Wood green is a lot larger - I get a two bedroom flat in decent condition.

Which one would you go for? The small flat in a nice location or the big flat in a not so nice area??

Are you aware of what 200k can get you elsewhere?

I'd suggest don't tie yourself down in your situation. To be 27 years old with 200k is quite advantageous.

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