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Looking For A Reason Not To Do It


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currently paying 225 plus bill pcm in a shared house, this is soon to be just me so 450pcm, now I know i could sub let but don't really fancy it

I have 27000 saved up and seen a flat for 55000, assuming I could get it for 50000, and taking a 50% mortgage at 3.28% I would be paying the same as the rent (well 452 plus building insurance and maintenance costs) on a 5 year fixed rate I would own outright at the end of the 5 years

even if the market dropped on it's ****, say 50% have I lost anything?? or is their something obvious I am missing

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currently paying 225 plus bill pcm in a shared house, this is soon to be just me so 450pcm, now I know i could sub let but don't really fancy it

I have 27000 saved up and seen a flat for 55000, assuming I could get it for 50000, and taking a 50% mortgage at 3.28% I would be paying the same as the rent (well 452 plus building insurance and maintenance costs) on a 5 year fixed rate I would own outright at the end of the 5 years

even if the market dropped on it's ****, say 50% have I lost anything?? or is their something obvious I am missing

even if the flat dropped by 50% you still have the equivalent money in your flat that you had in savings, and what if it does not drop 50% maybe on 30% you will be better off,

also to look out for if the flat is in a bad area, or is it just cheap bargin price

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In what I think is your position I would be pondering this too. What price are 2 bed terrace houses in that area? 2 bed flats should be half the price of a house. They were 20 years ago and imho will be again.

I make it £416 a month at 3.28% on 23k

If you believe it will be worth 27k in 5 years why not.

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Flat is cheap - why/where?

Flats have issues over maintenance and service charges and lease extension. etc.

More neighbours = more potential for nuisance.

25% cheaper than the norm for the area - northern town - presumably due to lack of parking in town centre - not a problem for me as a non car owner. Possibly 1 neigbour above but that along with service charges etc is to be confirmed, access is via shared entrance at the side of the shop below

even if the flat dropped by 50% you still have the equivalent money in your flat that you had in savings, and what if it does not drop 50% maybe on 30% you will be better off,

also to look out for if the flat is in a bad area, or is it just cheap bargin price

not a bad area, and as mentioned earlier not many ( if any ) neighbours better than many of the outlying estates with zero services, transport etc

Get a nice eastern european girl in to share with?

Too easy...

you two sound like my mate, haha!

The main downside I can see is that my now liquid assets would no longer be so

Thanks for the input

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In what I think is your position I would be pondering this too. What price are 2 bed terrace houses in that area? 2 bed flats should be half the price of a house. They were 20 years ago and imho will be again.

I make it £416 a month at 3.28% on 23k

If you believe it will be worth 27k in 5 years why not.

couple of grand for expenses associated with buying a house. terraces vary from 60 - 110!!!

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