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As everyone knows, interest rates are through the roof right now. I found a small studio in a nice area of a popular city, which I can just about afford. Including bills, ground rent and service fees for the block, it would cost me around £300 a week.
This obviously feels insane, especially as I would need to put most of my cash savings towards it and losing £2k a year interest. At the same time, I'd get to live alone in a really lovely area.
I don't mind renting with roommates for nearly half the price, and having that flexibility to move around. At the same time, I feel I should get on the property ladder before it's too late.
Pros:
Build equity
Get into the market before prices/rates go up even more
Live alone
Potentially be able to rent the place out if need to move
Cons:
Service charge and mortgage rate means only approx 25% outgoings (excluding bills) going towards equity
Costs considerably more than renting with roomates
Less flexibility- what if I can't rent it out?
Potential house price crash
High outgoings means may get stuck in a career and not able to take a cut to do something else.
Do any ladies with property knowledge have any advice for my situation?
Is it like 600 USD a month total? Seems insanely affordable. However I wouldn't bother with mortgage that is longer than 15 years. I would also investigate for potential big ticket expenditures like leaky roof or plumbing in the building.