Cheap house in good area v expensive in 'poor' area?
Cheap house in good area v expensive in 'poor' area?
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nosubstitute

Original Poster:

750 posts

212 months

Monday 20th August 2012
quotequote all
I am looking to buy a property.

I have seen a number of properties which on the face of it don't offer much value for money but they are in a very good area. They are at the bottom end of the market for that location.

I have seen some other properties which give more space and appear to offer more value for money but in locations which are less desirable.

I am looking at the property as a 'stepping stone' and want it to be easily converted to cash.

So do I go for the cheaper property in the nicer location or a more expensive one in a less desirable area?

flyingjase

3,095 posts

261 months

Monday 20th August 2012
quotequote all
Personally I would go for location everytime, it makes it much easier / quicker to sell on.

It also depends on your definition of not so good area, are we talking council estate, dodgy area or an overcrowded new build estate?

In my younger years I bought bigger houses (new builds) in not so great areas (think legoland home estate) and personally the compromise worked at the time (was younger with different tastes) but now I would never do it. I have driven back round those areas and can't believe I used to live there.

Ultimately it's what works for you and if you NEED the extra space, then the compromise maybe a necesity.

If you want quick turnaround and are moving on fairly quickly, go for better area / smaller house.

MartinQ

797 posts

211 months

Monday 20th August 2012
quotequote all
We went for a cheap property in a good area. Still bloody expensive for Mansfield though!

Benefits are; good area, low crime, clean and tidy streets. On the downside the house is smaller than the others around (the only semi on the street) - still 4 bedroomed but it's more than enough for the two of us, the dog and the odd guest.

In the end it's down to what you need. Once you close the front door and draw the curtains you want it to be as pleasant as possible. But that's no good if someone's put your car windows in during the night!

jas xjr

11,309 posts

269 months

Monday 20th August 2012
quotequote all
MartinQ said:
We went for a cheap property in a good area. Still bloody expensive for Mansfield though!

Benefits are; good area, low crime, clean and tidy streets. On the downside the house is smaller than the others around (the only semi on the street) - still 4 bedroomed but it's more than enough for the two of us, the dog and the odd guest.

In the end it's down to what you need. Once you close the front door and draw the curtains you want it to be as pleasant as possible. But that's no good if someone's put your car windows in during the night!
How can you have the only semi on the road ? There have to be at least two smile

MartinQ

797 posts

211 months

Monday 20th August 2012
quotequote all
jas xjr said:
How can you have the only semi on the road ? There have to be at least two smile
You know what I mean rolleyessmile

CaptainSlow

13,179 posts

242 months

Monday 20th August 2012
quotequote all
Cheap house in good area every time.

jas xjr

11,309 posts

269 months

Monday 20th August 2012
quotequote all
MartinQ said:
You know what I mean rolleyessmile
I don't often get a chance .

Always go for the area .
My parents did the wrong way around . Cost them a fortune in the end

Swoxy

2,842 posts

240 months

Monday 20th August 2012
quotequote all
jas xjr said:
How can you have the only semi on the road ? There have to be at least two smile
ACTUALLY, mine is joined to the house on the adjoining street, e.g. their front elevations are at 90 degrees.

jaedba2604

4,009 posts

177 months

Monday 20th August 2012
quotequote all
big house in ste area works if it's a student area, as you can rent by room if you want to move up the ladder (notwithstanding your point re cash conversion...) other wise always go for location, but ensure you sacrifice number of rooms not size of rooms, no one wants a house with 3 bedrooms that only an estate agent would describe as double.

a 2 bed house in a nice area has broad appeal...retired, first time buyers, kid free couples.

FLASHG1981

101 posts

173 months

Tuesday 21st August 2012
quotequote all
I'm going to say the opposite to all the other posters and go with the bad area if it is purely for the purpose of making money and you aren't too concerned about the area. The reason I say this is around my way prices of terraced houses in cheap areas have dropped substantially where as during the boom there wasn't a big gap in prices between the good area and bad areas but now there is.
I think the reason the good areas haven't dropped is more a case of there being less forced sales so sellers are trying to hold out for delusional asking prices so you will have to overpay if you want to live in the nice area. I would buy the in the cheap area and when the next boom comes and the gap closes I would move to the nicer area.

Oi_Oi_Savaloy

2,315 posts

290 months

Tuesday 21st August 2012
quotequote all
Trouble is - if you buy a large house in a poor area with the view to doing it up and making a profit you might come unstuck. There might be a ceiling in the road/area that means you're unable to make profit after you've done it up/extended it etc.

Whereas - if you buy a smaller house in the best area - you still have an opportunity to make a profit as you wont hit that ceiling (all things being equal etc etc).

That's my view on things anyway. Therefore - I'd always try to buy a the worst house in the best area rather than vice versa.

lexham

142 posts

275 months

Tuesday 21st August 2012
quotequote all
Worst house in best area, then update / upgrade as needed to turn a sale.

Google Streetview is a deal killer for nice houses in bad locations. People using Rightmove very quickly spot where there is a main road / playground / factory next door and then either totally discount or negotiate downwards

http://www.rightmove.co.uk/property-for-sale/prope...
Then click on streetview and look to the left..

FLASHG1981

101 posts

173 months

Tuesday 21st August 2012
quotequote all
lexham said:
Worst house in best area, then update / upgrade as needed to turn a sale.

Google Streetview is a deal killer for nice houses in bad locations. People using Rightmove very quickly spot where there is a main road / playground / factory next door and then either totally discount or negotiate downwards

http://www.rightmove.co.uk/property-for-sale/prope...
Then click on streetview and look to the left..
Isn't the fact that its under offer though show that houses in the bad areas are selling?

fido

18,918 posts

285 months

Tuesday 21st August 2012
quotequote all
FLASHG1981 said:
Isn't the fact that its under offer though show that houses in the bad areas are selling?
Or - everything has its price.

I guess it comes down to a) is 'poor' area going to become a 'rich' area, or is it likely to stay the same or get worse ? b) will you benefit from the extra space during your ownership? c) can you tolerate being in a 'poor' area? i.e. quality of life. And the OP is in the best position to take a guess at this.

nosubstitute

Original Poster:

750 posts

212 months

Tuesday 21st August 2012
quotequote all
I think on balance I'd rather be in the nicer area and sacrifice some space.

sideways sid

1,467 posts

245 months

Wednesday 22nd August 2012
quotequote all
I agree with the worst house in a better area argument. You don't want your family or visitors to get mugged on the way to your flashest house in the ghetto!

Soovy

35,829 posts

301 months

Wednesday 22nd August 2012
quotequote all
nosubstitute said:
I am looking to buy a property.

I have seen a number of properties which on the face of it don't offer much value for money but they are in a very good area. They are at the bottom end of the market for that location.

I have seen some other properties which give more space and appear to offer more value for money but in locations which are less desirable.

I am looking at the property as a 'stepping stone' and want it to be easily converted to cash.

So do I go for the cheaper property in the nicer location or a more expensive one in a less desirable area?
Smaller house, nicer location.

No point in having a mansion surrounded by scum.


anonymous-user

84 months

Wednesday 22nd August 2012
quotequote all
Location, location, location.

johnfm

13,751 posts

280 months

Wednesday 22nd August 2012
quotequote all
IF given a choice, always go for the best possible area.

Deva Link

26,934 posts

275 months

Wednesday 22nd August 2012
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Shnozz said:
Don't disagree with the 3L policy - but as my post alludes, I think you also need to keep in mind the demographic of potential residents. I bought a nice house in a nice family area. The problem being that the house was small and unsuited for families. In a family area....
What's a "family area"? I live in a road with "family" sized 3, 5 & 5 bed detached houses. The village school is in our road. NONE of the houses in the road has school age kids now, and, OK, you'd think families grow and and kids fly the nest but the really bizzare thing is that quite a few of the houses, including one next to me and the two immediately opposite, have been been bought in the last few years by single adults.