Should I buy the safe flat or stretch to buy the homely house
Looking to buy a property in an expensive UK city wirh a garden and if I can, 2 beds. Torn between cheaper option - flat, and more expensive option - house. Any advice? What should I do?
Flat: after mortgage payments and essential bills (groceries, utilities, dog insurance, car running costs etc), I’d be left with around 800-1000 to spread across savings and all additional spending including any home improvements. Pros - able to save cash fast, can overpay mortgage and build equity, less stressful, allows more flexibility if I want to change job in the future/do a career pivot. Cons - doesn’t feel like a home to me/feels temporary, less nice home space, would cost me money moving if I sell and buy again to a house in 5 ish years.
House: after mortgage payments and essential bills as above, I’d be left with about £500-700 per month for all additional spending. Pros: feels like a home!! Can stay there a good long while, feels like I’m improving financial situation through property and likely to have larger increase in value over a flat. Cons: would be quite tight money wise, could only save a tiny bit at a time for a good long while until mortgage was lower, less flexibility, would maybe save money longer term if I could stay here for a while rather than moving again.
I’m not going into this with a huge buffer either - I have around 4-6 months emergency fund in savings in case I loose my job, and that’s it.
I am also interested in getting a lodger to help cover costs but don’t want to rely on that, and worried the spaces I’m looking at are too small to have a lodger in - ie. I’ve fallen in love with a little house with a single second bedroom which is only 60 square meters total.
I feel stuck as have opposing wants - to become financially more secure/have more worth to my name, to retain flexibility so I can pivot career or try something new, and to have somewhere that feels like a proper home. I’m also 40 so not a super spring chicken, though still some time!
What would you do? Is there anything I’m not considering here? How tcan I make this work for me and what is the best financial choice??