Advantages & Disadvantages of Buying A Flat

Whether you're a first-time buyer or purchasing a second home as an investment, buying real estate is a significant decision that calls for a lot of thought and little impulse. I decided to buy an apartment as my first house as a first-time, single buyer. Much of this had to do with what I could afford at the time and what worked best for my situation. I wanted a home that had the fewest possible entries and exits because I was living alone.

I've learned a lot about buying, owning, and selling apartments, just like with anything you do for the first time. If you're unsure whether to buy a 4 BHK flats in Nashik or a house, I've listed all the benefits and drawbacks of doing so so you may come to your own well-informed decision.

The Advantages of Buying A Flat

The Cost

In general, flats are substantially less expensive than houses. This makes them significantly more reasonable and accessible for first-time purchasers who are single, those who make less money, and those looking for investment options. Depending on where you live, one-bedroom flats can be found for roughly £80–100k in various regions of the South West. This makes acquiring a mortgage and getting on the property ladder much simpler than with houses, which are continuing to appreciate in value because of the COVID pandemic.

Maintenance

One benefit of a leasehold property is that the managing agents of the apartment handle all maintenance tasks (in most cases). Any necessary work will be paid for by a combination of the service fees that you all pay. You can rest easy knowing that if a problem arises, all you need to do is notify the managing agents or landlord, and they will take care of fixing it.

Security

Most flats provide far greater security than traditional homes, depending on location and architecture. Secure intercom systems with video are installed in certain apartments so you can see who is calling while only those with the right code or card access can enter the building. Having a second door can give an extra layer of security and increase security for people who live alone. The majority of this equipment is already included with a flat, so you won't have to spend extra money on glitzy CCTV systems and Ring doorbells!

Easier To Manage

Flats are appealing not only because they are affordable, but also because they may be so much simpler to maintain. For business professionals, singles, and senior citizens, a flat is considerably more manageable due to its smaller size and the lack of a yard area. The management agency also handles all maintenance, so all you have to do is pay your service fees on time each year and unwind.

The Disadvantages of Buying A Flat

Leasehold Property

Owning a flat has many disadvantages, but the main one is that it is a leased property (houses are generally freehold). A leasehold property is one that has an agreement outlining your obligations and permitted uses, and the real property is owned by the managing agency or landlord.

This basically means that you have the right to live in the property for a certain number of years set out by the lease; although leases do get renewed, it might not be in your favour. When you buy a flat, the length of the lease will be disclosed to you; flats with shorter leases are much harder to sell. When the lease has 80 years or less left, it becomes an expensive difficulty to prolong since it attracts marriage value. The shorter the remaining lease term, the more expensive it is to do so.

Service Charges & Ground Rent

When you own a leasehold property, you must annually, or according to the conditions of the lease, pay the landlord both the service charges and the ground rent. The cost of ground rent ranges from £50-£250 per year, however service charges can be significantly different depending on how your apartment is set up, how many apartments there are, and the potential maintenance requirements. For example, properties with a lift have a substantially greater increase in servicing fees.

All potential annual maintenance expenses, including cleaning of common spaces, servicing of door software and elevators, managing agent fees, etc., are covered by service charges.

Typically, service fees are requested in advance of any work being done. It will be easier to control your expectations if you are aware of where you stand with annual payments and when they are required. As a flat owner, this is when it can start to become a genuine issue when unforeseen expenses or management changes occur.

Privacy

Owning a flat means having much less privacy because communal spaces are frequently used, which might increase noise, food smells, and unintentional door usage. However, some people prefer this because of the added security that living in a flat provides and the fact that other people are always nearby.

Neighbours

It is conceivable that occasionally you will hear your neighbors upstairs on the floor if you live with a flat above you. Some leases specify that a living area should only have carpeting; this adds an extra layer of soundproofing to prevent you from hearing the inhabitants above. Additionally, keep in mind that since some apartments are rented out, your neighbors may frequently change. I once had the worst neighbors imaginable, but six months later they were replaced by a beautiful couple who didn't bother me for four years. Trust me, I speak from experience. Additionally, not all renters treat the property with the same level of respect that homeowners do. This is one aspect of apartment ownership that you can't really control, so you need to think carefully about whether you can live with it.