trapped by the property market crash?
Hi there. I bought a flat in London at possibly the worst time (March 2007); just before the peak in prices when properties were getting snapped up. I panic bought a tiny one bed big enough for just one person.
The good news is I got a tracker mortgage, so my payments have almost halved with interest rates dropping.
My relationship with my boyfriend has since grown serious, and we really want to live together. I really don’t want us to go back to renting, he has available money, but I don’t and neither do I have much equity in my flat – I bought it for 160K and put down a 10% deposit, so even if I sold it at the amount I bought it for I only have 14K to put towards a deposit with my boyfriend for a 2 bed place.
Do you think we should a/ live together in my tiny one bed and save for a deposit on a larger place (the cheapest option but least comfortable in space terms) or b/ rent a larger one bed and rent out my flat (more expensive option but more comfortable)
Real Estate Professionals
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Tagged with: Interest Rates • Market Crash • Tracker Mortgage • Worst Time
Filed under: property crash
Do option b. It would probably drive you both stir crazy after awhile being in such a confining space. Also, it will probably be cheaper than him living in his own place. So, you’ll probably still be saving money over your current situation.
You should both stay in your flat. Everything is so uncertain at this time and the last thing you want to do is to incur more debt.
I’ve got a suggestion and please don’t laugh as it worked for me and my husband when we were first married and lived in London in a small flat.
We bought a caravan (I hope you’re not laughing). We bought a cheap static caravan in Kent which was about an hour to an hour-an-a-half’s drive away from where we lived. So almost every weekend in the summer, in fact right through until October we could spend time in the country.
Look around and investigate as many caravan sites as you can they are not as expensive as you might think.