Decisions on new home (aka new beginnings)

Good afternoon ENA'ers,

So my co-owned flat is now under offer and I'm looking into possibilities, so any advice, experiences would be greatly appreciated.

I jumped into the last one because I was being evicted from a rented property and with 20/20 hindsight, life could've been better...

With my next step I'd like to have something nice naturally but also with a mind to the future as it won't be my 'forever home', so the resale factor will play a part.

Anyway, onto the choices. With the equity I will gain from the sale I have some limited options. I originally looked into a new build 1 bed flat that I fell in love with but it's slightly out of my reach unless I take some outside measures (second job, no social life etc). I thought it could be the dream home until I realised that it's quite overpriced (as apparently they usually are) and can sometimes come with all sorts of defects (snags) due to developers rushing to meet targets. Anyone with experiences of this nature?

Alternately, I could get a 'normal' 1 bed flat(none of them are particularly special), but in my local area I could actually afford a 2 bed with a little fastidiousness. Bit of extra space wouldn't hurt. So it's a bit of a toss up on 'keep it cheap and simple' or 'push the boat out a little for some space'.

Another option is that there is a relatively quaint 1 bed house on the market within reach. Its of decent size for what it is and has a garden(and a spiral staircase to the bedroom - never seen one of those before). But, I've read that 1 bed houses are difficult to sell as they're only needed by a small demographic (one which I fall into quite neatly, but I doubt many others do - I could be generalising here). Now this does raise the argument of flat vs house, which normally has a clear winner, but does the fact that it's a 1 bed change things?

Finally the last option is to go back into rented accommodation, save up for a bit and find something really nice. Not ideal, but no real harm as long as it's short term.

As before, any thoughts would be of great help.

Thanks in advance

R

I'd get myself into the real estate market and buy a place sooner rather than later. Prices generally always go up, so the longer you wait to buy, the more unaffordable your desired place could become.

If price wasnt an object which of the ones you mention would you buy?

Houses here in Ontario Canada go up just by you living in them, a natural increase in value. As long as you take care of your home, you should make money on it when you sell. There's always a single person, or young couple, who could want a one bedroom house, it'd be a stepping stone to a bigger place later on. I lived in a one bedroom house for a few years, it beats living in an apartment!

Go for the one you like best and is affordable. Rent is money down the drain, dont be paying off someone else's mortgage.

Well, it would be nice to know the name of the city you're looking at, how much money you're making, what you do, if you're in a relationship, are you young or old and what your needs are. Otherwise I would just say do what you want to do.

in my local area I could actually afford a 2 bed with a little fastidiousness.

Is your local area a desirable market? If so, a 2 bedroom without major hidden expenses (plumbing, electrical, structure are roof are sound) and outside of a flood area would be a better investment to improve over time than a single bedroom. However, if the base expense is too much of a stretch, then your ability to improve the property is hindered.

I would skip spiral staircases unless you're referring to a grand one. Dinky ones are usually a replacement for an attic draw-ladder, even while getting anything up into the space is impractical and not a great resell feature.

Use real estate sites to view 'comparable' properties recently sold in the areas where you are open to buying. This gives you a reasonable idea of the market value of anything you view, and it raises a flag if a property is priced too low. Ask your realtor (who should NOT also represent a listing you want to buy) about known defects, pricing history, or whether the listing is brand new and deliberately set low to bring a bidding war.

One rule of thumb I've run into regardless of whether it's a buyer's or seller's market at the moment is: if you plan to stay in the home for 5 years or longer, then give most weight to the space and location that would make you the happiest. If you intend to improve the property and leave in under 5 years, then give most weight to desirable location and resell value.