Should I buy a small house or a flat?

I have two children both attending the same university. One just started and the other is about to graduate. I would like to buy something for them instead of paying rent.

Asked by katie.jenkins

4 Answers

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Answered by Paul Ross DipPFS CII(MP&ER), IFA in Bourne, LINCOLNSHIRE
In my past experience, a house because they're a lot easier to sell afterwards. | 01.04.11 @ 08:22
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$commenter.renderDisplayableName() — {comment} | 10.18.17 @ 12:51
Answered by Darren Smith, IFA in Basingstoke, HAMPSHIRE
I would generally agree with Paul.

You need to think about your exit strategy and buying a flat will dramatically reduce your potential pool of buyers in certain markets - they dont appeal to families or often the elderly (when above ground floor). But if you are in a town/city with a strong rental market or where flats are in short supply then there could be a reason to buy a flat.

but houses can have their pitfalls too, a one bedroom house with no potential to expand is probably just as limited as a one bedroom flat, the only difference is that the house might also come with a small garden and parking.

i suppose the key is that whatever is the strong reason to buy a flat will often be the opposite reason for why not to buy a house and vice versa.

if you are planning on keeping this property after your children have both graduated then you need to consider the longterm investment strategy. if the plan is to sell again in 2-3 years time you need to consider - what if the market has fallen? how much would you stand to lose in capital and sale costs compared to perhaps a more fixed and known loss when compared to rent?

many mortgage lenders would still likely insist on a 25% deposit from you even with your children staying in the property but this wouldnt be such a bad thing anyway as it would improve the rates you would be offered substantially when compared to a lower deposit.

you can see from the comments made already that there are many things to consider....... | 01.04.11 @ 13:18
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$commenter.renderDisplayableName() — {comment} | 10.18.17 @ 12:51
Answered by John Stirling, IFA in Saffron Walden, ESSEX
I would agree, a house is generally a more liquid investment (although this is a strictly relative comment, as houses and flats can both be difficult to sell).

I would however caution that you will generally get more for your money with a flat, security can be better depending on the location, and of course a house will generally require more maintenance, so if your children are not handy with a paintbrush then you may be in for more cost than you expect with a house.

| 01.04.11 @ 13:20
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$commenter.renderDisplayableName() — {comment} | 10.18.17 @ 12:51
D
Answered by dustin
Hello James,

I think it depends on your personal circumstances. Someone says that living in a house is better than flat or someone opposite. I live in a house. I have always preferred it where you have more place for your living. Every member of family can have their own room.

Decide if it makes sense of for you to buy a house or flat. Simplify your search by deciding the area to live in. Find out real estate agent who will search for house or flat, if you are having trouble find them, look Plaza Estates where you can represent your interest and negotiate your requirements as well. | 06.14.13 @ 07:14
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$commenter.renderDisplayableName() — {comment} | 10.18.17 @ 12:51
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Answered by

Paul Ross DipPFS CII(MP&ER)
Paul Ross DipPFS CII(MP&ER), IFA in Bourne, LINCOLNSHIRE

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