ACCOUNTANT EXPLAINS House vs. Flat: Which Should You Buy?

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In this video (for my UK friends, (specifically England & Wales)), I share the pros and cons of buying a house vs. a flat.
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00:00 - Why this is important
00:46 - What is the difference
01:41 - Hidden costs
04:23 - Ownership & value
05:35 - What you can & can't do
06:41 - Non-financial factors to consider
DISCLAIMERS & DISCLOSURES ❤
This content is for educational and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Thank you for your support!

[@nischa]

👉🏽 My Free Intentional Spending Tracker - nischa.me/intentionalspendingtracker Thank you for watching :) Please note, the content in this video is specific to England & Wales

[@aiApprentice98]

I love your content. You provide valuable insights that I try to implement in my own daily living

[@steffannurse6667]

thank you its relatable worldwide

[@tarasfeduniv3600]

please make also a video on this topic about the US

[@Daniel-nt5gh]

Right, in Spain there is not such thing as lease holders, everything is Shared Holder, and the price of the maintenance services are set by the owners of the flats, so you have control over that somehow. OTOH that is why when you buy the property, the square meters are listed including your proportional share of the communal spaces, or in best cases are listed with two measurements, your total space including the communal spaces (metros construidos, builted square meters) and the ones that you have just for yourself (metros habitables, livable square meters). That way it is always cheaper to maintain a flat, even if you have lots of more services like pools, tennis court, concierge, private security, heating etc... And insurance is a must to have 2 policies, one that it is included with you communal bill that covers the communal spaces, and one for your own property, that way home insurance is also way cheaper and with lots of coverages. Not everything done in the anglosphere is the best way to do it. ;-)

[@AddyOliver]

Thank You For Sharing All These Informations. I Have Always liked Your Contents Here On KZbin. Please Share with Us.

[@krzysztoffolta4823]

More property and investing in property videos would be great, for example comparisons of different opportunities with property such as buy to rent, HMO, etc.

[@PropertyCouple]

We’d also be interested in these kinds of videos 👍

[@sunevanheerden]

Yeah there are so many considerations here ✨Will aim to give as much value in my videos as well !

[@c3realK1ll4h]

HMO is when a property is in disrepair and has to be fixed, buy to rent u need more deposit down to rent a property out

[@XxBruce5002xX]

I'll save you the hassle - landlordism is morally reprehensible and you should avoid it

[@consideredthoughts1791]

You can summarise the two property types as follows: With a freehold house, you own the building and ground it sits on. These two, generally, become more valuable over time. With a leasehold flat, all you ever own is the right to live there. And that right steadily becomes less valuable over time - unless you pay to stop that erosion.

[@jainejane107]

Would definitely love to see more homeownership videos. Specifically how you started and how you manage your properties

[@aideenfay4744]

+1 !!

[@fredsmith6725]

What the Grenfell Tower situation has done to privately owned flats has completely put me off ever considering a leasehold flat. We have two tower blocks in my town which have been wrapped in plastic and scaffolding for years, because the freeholder had all the insulation removed on safety grounds (rightly so) and imposed a phenomenal cost (over £10,000) to each leaseholder to pay for he remedial work which the owner company cannot afford to pay upfront. These unfortunate leaseholders now have flats which are unsaleable, cold and damp, and covered in plastic so they can't even look out of the windows. It's a scandal; my heart goes out to these hard working people.

[@chitpaul]

Lease is not always bad, I have a 900+ years lease, my ground rent service costs are less than £20 a year. For £20 a year the landlord is responsible for the outsides. We’ve been here for 13 years. So leasehold is not always bad.

[@davidrieger8816]

This is a unique UK scenario. In Australia all apartments the land is part owned by the owners (scenario 3). There is no such thing as leasehold. This makes buying apartments a solid choice to get into the market. The only major cost is body corporate fees and maintenance levies (~$2k pa)

[@Rahul-oy4bp]

Its only in England. I think in North Ireland and Scotland it's owned partly owned by person buying the flat. Also there are no council charges and water bills like in London. Downside of owning a house is most are 1930s if not than 1970s built and there are lots of unknown works like changing entire kitchen unit, double glazing windows, flooring, and energy bills. Most houses are old and energy runs £7000 per year. Also it's too cold or too hot. And the prices are expensive that one might end up paying somebody else's retirement. Also the houses are not near to the station or high street and the good ones those are cost twice. As soon as one enters a house one feels they have moved to the 70s because the houses itself are so old..

[@meibing4912]

Yes, and this is why the video is wrong about the comparison. @@Rahul-oy4bp

[@IndigoIndustrial]

@@Rahul-oy4bp If it's stood up for 50 years, should last a few more. I agree UK houses look dated. Try to avoid conservation zones.

[@usernamechecksout]

Not just Australia mate, in all civilized countries the people who buy the flats own part of the land the building sits on. And there's no or little council tax. I've lived in 3 other countries and the UK is the only one where this level of condescending ripoff happens.

[@TheTopStarz]

What you're teaching should honestly be taught in schools as a regular lesson from a young age but i've got a sense the government and companies wouldn't like most people knowing what you're teaching (not to sound like conspiracy head Lol) but I'm glad i found your channel and honestly, thanks for the videos, educating us and sharing your knowledge

[@tomriley5790]

Service charge is the main difference I think between a house and a flat - if you own a house you can DIY it if you own a flat it can be extremely expensive plus it includes things like lifts that you wont have in a house. to be honest it often feels like I'm still renting despite paying a mortgage to "own" my flat. Downside of a house in London and elsewhere - more likely to be broken into.

[@jimboyuk1]

Err fhats not what really happens.Too risky staying in the same property.

[@gailainsley6939]

@@pritapp788. How? That doesn’t even make sense. It’s very rare 😂

[@febirigor9478]

Living in a flat makes me feel safer too

[@christinastender409]

Yes please do make more on property. What you already are doing is great and very helpful and you make it easy to understand and therefore easier to make a decision what is right for me. Thank you for the great advice and content! Love it!!

[@starfish258852]

I simply love the way you present your content and how it is precisely communicated

[@PropertyCouple]

We appreciate this style of content (and this series of real estate videos) Nischa. Very well structured and presented. Thank you for sharing 🙌

[@nischa]

Thank you so much!

[@sunevanheerden]

Totally agree, structured so well. Taking this onboard for my channel as well 😅

[@alastair7363]

Great video, clear points, well made. This is something that I am starting to consider again now i'm looking at getting back into property ownership, so it's good to remind myself of the pros and cons!

[@giger751]

Flats are way warmer and cheaper ( Gas , Electricity ) Energy rating usually B-C comparing to houses D-F

[@atishayabakshi4495]

Yes, property videos will be very helpful, also letting your property as an additional income stream will be an insightful topic. What to consider while buying a property to let in the future?

[@sunevanheerden]

So many moving parts handled so well. Thanks for organizing the info so well taking this onboard for my channel as well 😅

[@mallorygraf8574]

Wow! I'm in California and am absolutely fascinated by your country's real estate laws. So interesting to see how it all differs.

[@roughprada]

Thanks for your videos and content! I find it all very informative and friendly; thanks a lot! You mentioned the concept of the "property ladder". Everyone talks about it, but it will be great to understand a bit more about what it means, how to make it work well for someone and how to deal with banks and other entities that will give you the money for it!. Thanks

[@user-iu4dq6wm1t]

This was very informative and I'd love to hear more form you on the topic of property ownership

[@kennethtlin]

Please make more videos about renting!! I'm highly considering renting instead of buying because of how much housing prices have skyrocketed in the last decade :(

[@sarah.wassila]

Wow! This was absolutely fascinating. I automatically thought a flat would be better because it's cheaper, but I had no idea how much impact being a leasehold has on a property. Not that I can afford a flat or a house at the moment😅, but this is all good info for the future. Thank you! And yes, please to more content on this topic!

[@mpink8907]

I’m considering shared ownership because the house prices are wayyy too high! Please can you do pros and cons of owning / shared ownership and what costs to look out for etc. where to find a property etc

[@jstarrrrrrr56]

Thanks for this! Would love some more videos on property - particularly any advice you have on the step-by-step process of buying a house in the UK :)

[@kasititi]

Yep, same here!! Perfect video in a perfect time! Please make more of these 🙏💕

[@bartoni79]

Also worth mentioning that if you move into a flat as it’s cheaper, then move into a house, you’d have to pay stamp duty twice. Probably more applicable in the south where prices are higher.

[@nowsheenanwar291]

When you 'buy' a flat, the service charge and the maintenance costs - so the example of the lift which you mentioned, the charges would also increase in time as well so if the bill was £300 for every leaseholder, then in a few years time, it will be £500

[@ihsan6359]

It's a pity many people have no idea on investing and their personal finance. The system fails many. Thanks for your work, Nischa!

[@kittydeleo4043]

I found this very useful, thank you so much! I would definitely be interested in more property content. Love your work!

[@saratopic]

Thank you for sharing with us the factors that i would not have even thought of when deciding between buying a flat or a house. After this, my vote definitely goes to buying a house. Keep up the great work and videos! 😊

[@HalfAsianDerp]

This was super great Nischa, would love to see more content like this as I'm planning on making a down payment on a house in the next 3 years!

[@laraarx8598]

Another great video with very important points pointed out ☺️ It would be very interesting to learn more about real estate through your videos, so please keep sharing your knowledge about this topic. I'd be interested if you ever thought about the opportunity to buy property abroad? In general: Thank you so much for your very valuable work Nischa - absolutely love your content ❤

[@jimmyrecard5761]

Good Video! here in Australia houses tend to hold there value better being more desirable. Whilst most of the time its cheaper upfront to buy an apartment the upkeep is actually a lot more then a house. also resale a house will be easier to resell if you really need to move it on. The other negative with apartments is you cant control the costs as you mentioned, we also have strata fees in Australia on top of rates for apartments and that can really stack up on top of sinking funds and repairs as stated. You generally don't have a choice either when it comes to the external structure on if it gets repaired or not and costs are divided up between the owners and organised by the strata companies. Not to mention the strata company will tack on the administration fees on top of the repair fees.

[@mirror_6336]

As usual, you have collected all the pros and cons, in today's case of buying an apartment or house. Thank you.

[@kawsarhussain7432]

I remember when you had like 20-30k subs. So amazing to see i knew you were gonna blow up love the content keep it up. Who cannot like content from someone like youu

[@dariamoiseeva2778]

Thanks) this is the kind of video I really am glad to see in my feed) please keep it up, the topic is super useful)

[@StevenContent]

Love your videos, it’s become a habit to watch every Sunday :) Question, what equipments do you use to record your videos? The quality of it is amazing!

[@noahsarchives8369]

Free hold house with a drive and garden is the best. Flat is a nightmare: lease, service charge, ground rent. Value of the flat doesn’t go up like the house. My house went up 40k in value in 2 years. My flat went down 20k and then went up 15k so down 5k in the last 5 years.

[@Nigromancy]

Super helpful! I just dodged a major bullet on a leasehold, the freeholder dropped a 100k maintenance bill on all the owners and has really upset everyone. I'll not waste my money on a leasehold now, just bite the bullet and go for a house.

[@sarahjakob4875]

More property investment videos would be appreciated please. You have a great way of simplifying things other people make complicated. Thank you!

[@vijayshah4880]

South facing, to enjoy full day sunlight and electricity saving is good point. Thanks for helping to make decision for home purchase.

[@laureenh.9663]

Would love to see more of these videos, especially tips on researching a home, finding a good realtor, getting the best mortgage, etc. etc.

[@sn3051]

And good developer for trouble free houses. I have heard of wrongly built new houses which have leaks etc

[@SherbertLomon]

Your channel grew so fast 0.0 I was here a few months ago and I think it was 10-60k at most? Damn well done! Haha

[@getcarl87]

More property videos please. This one was brilliant too!! Thanks @Nischa

[@MusicZtorm]

Thanks for the video, different from here in Paris where you own a share of the land if you buy a flat. Public service taxes equals roughly 1k euros/year for a 1 bedroom apartment and it will cost you around 1,5k euros per year for the "frais de co-propriété" ( for co-ownership expenses like fixing the elevator, "concierge" etc ...) ... and you always own you property (not 125 years or ...)

[@navinmohanan-mu5sc]

Great property video! Interested to see more of this & how to diversify your property game.

[@AzKam84]

So what happens if you own a flat leasehold, and then one day in the future the government/council decide that they want to tear it down to make room for something else? Do they have to buy it off you first, or do you just loose your property with no compensation since you were not the freeholder? Also, I would love to see more property related videos on this channel. Especially since the property game seems to be constantly changing so rapidly nowadays. It would be nice to get your opponion on this to keep up to date with it all.

[@rikeshpatel3194]

Love the property videoa Nischa! Im selling up my house and deciding whether to buy a house or flat so this has been really useful.

[@scap11]

This is good thank you- I’m at the stage of looking for a place to buy, similar to what you did with renting it out and then flip and get my cover home? I find these useful thank you

[@OVB_NL]

I found this really useful Nischa - please keep them coming 🙂

[@edwardkakaire7362]

Thanks for the content.. highly helpful as always. Yea, would be great to see more real estate / property videos, will be investing in property so its all valuable content. Thanks for that south facing garden tip too. 😊☀️💯

[@riagandhi148]

Would love to see more property videos! They’re so helpful

[@exscapetravelling9224]

could you do a video about WHEN to buy? What signs to look for when entering a deal (location, market crash, price...), where you could go for good deals, what to avoid etc.?

[@m0rce1]

Hi. Your insight is appreciated. Thank you for making these videos.

[@adl7370]

This could potentially become the most viewed video you have - great topic 🙏

[@dazzarg5]

Thank you. That was very useful as I’m just looking into buying the place I’m living in

[@spectre3604]

One more amazing video from your side. Yes, would love more videos of this.

[@nigebemand7124]

Loving the property videos, I have just started investing myself and appreciate you taking the time to share your knowledge. Thanks 👍

[@singlendhot8628]

It would be really helpful if you could address the changes in the Buy to Let market and how best to approach the decision on whether to proceed with a B2L property.

[@adriela-sainasandulache1691]

Great video, Nischa. Thank you!

[@dreamzzz610]

From experience, try and avoid buying a flat to live in. Service charges go up yearly, any general repairs to the flat by the freeholder, you will have to contribute. Buy a house if you can even if it's in a cheap area. It is a better investment

[@josepdionisserentillchaube4367]

In Spain, if you own a flat, generaly you own a % of the Lot. It's not always the case but generaly that's it. You can't sell the flat without the % of the lot but, if the Building ever goes down you will be the owner of that lot in the determined %. (Many rules apply.) And also your propiety is not temporary. You own the flat with no time limit and your family can inherit the flat with no time limit. There are mandatory costs of maitenance and reparations but it seems like a good deal to me. (Almost 67% of spaniards live in flats)

[@antoinelarsen]

Some more videos on property looking on moving out early next year these videos are so helpful!

[@mbb216]

@nischa - Very helpful video. I watch your videos frequently and those are really helpful.

[@salvananthony2880]

Thanks @nishcha for sharing the interesting topic. I think this analysis have dependencies whether it is landed house or flat. It is much appropriate to England & Wales. For other countries, in terms of investment to property ladder, the complexity of governmental approval, consumer behaviour, the security, the ROI bet LH and Flat..etc., need to be factored in. plus the T&C of mortgage on flat & landed house is crucial.

[@samsam-6195]

Also if you buy a house with a south facing roof you can install solar panels and reduce your energy bills ❤

[@lilypudd]

Thank you for this explanation of how leaseholds work.

[@UnknownUser-qq1od]

flats in uk can suck if you live in a family. Often times the flat walls are just cardboard everyone can hear your conversations, they can hear your steps. If unlucky, you're gonna have to deal with complaining neighbours all the time.

[@Honey-vm8xg]

Would be great to have a video on tax implications and regulations on buy to let's as I know regs have changed recently

[@user-wl1zg7hm8j]

Yes pls Nischa… and I as a foreigner want to know how to find reliable builders to fix properties and who are the best tenants that pay rent and dont destroy property

[@Mraei0u]

My eyes are open. Thank you! ❤

[@PlayItOnTheFloorTom]

Your videos are great 🙌🏼 Would love to see you cover finances for the self-employed/freelancers, particularly relating to taxes if you have any advice there?

[@hassangondal347]

This certainly sounds good too, but I think its still worth considering more reliable options like traditional businesses such as cannafarm ltd, for example.

[@absenceoflimitations7357]

This video came at just the right time.

[@gabilafora4204]

That is a very interesting video, specially in the current housing crisis situation

[@aznibas]

Thank you for your wonderful presentation which is informative and helpful for a buyer to make their decision

[@kumarsabaratnam4787]

Thanks for the valuable insight on inv in props.

[@rss112]

Just sold my flat which I lived in and then let out! What a headache! As a landlord! Paid over 40% tax as a higher earner! Then to have the headache of trying to sell it. As you need permission from land owner, management company etc..

[@asummer9460]

Valuable info dear Nischa. I don't normally comment but I hope this may also add on some info.I have to say that Location is the key whether house or flat for long term growth. House do cost alot to fix too at a lump sum cost although U can choose when to fix the problem but as house gets older, the value depreciates too unless you renovate which cost heaps too whereas with Flats/Apartments/Condo... You pay a body corporate or Strata fees every month or quarter to keep the place in good order but it is not in a big lump sum of money. In hindsight, the maintenance fees for both House or Flats comes to the same over time. If you own a freehold flat, the body corporate fix the building problem unlike owning a house, you would have to do the hard work, running around looking & waiting for tradies to come to fix your House so most retirees sell of their home to downsize moving into Flats for that reason, lock up and peace of mind not having to fix anything but just paying the quarterly maintenance fee. I hope this helps people to decide more of which to buy depends on their circumstances and lifestyle.😊

[@nischa]

thank you for sharing

[@j.smith.8915]

I managed to find a house just outside of London for the same price as many flats (and maisonettes). You get your own allocated parking and visitor parking (which is rare in new build flats nowadays), dual aspect (again often rare with new build flats), a garden, and as Nischa said freehold, with no additional charges like ground rent and service charges. Of course, the compromise is location.

[@DaisySK43]

Hey, where did you find your house just outside of London please? Would be great to share the location as I want to downsize my house and move just outside of London as it's too expensive to remain within London. Thank you.

[@j.smith.8915]

@@DaisySK43 Hello, Hertfordshire. You will have to research what town/village suits you best, but it's more family-friendly, greener, easy and quick train links into London, access to motorways etc.

[@DaisySK43]

@j.smith.8915 hello 👋🏻 thanks exactly what I'm looking for I'm done in the city of Croydon from birth! I need a change with greenery and good links to London. Which area in Hertfordshire is it if you don't mind me asking please? Thank you 😊

[@ao5241]

Love this nischa so much information qnd gems 👏🏿👏🏿

[@richard99cookify]

People say south facing but I think west facing is better personally, evening sun on weekdays!

[@ShahnazMalik.]

Yes please do make property ladder videos and teach us how to buy first house and where to buy and how to choose?

[@alexhunter4800]

Thank you Nischa, as always very useful! Real estate subject is super interesting for me but I only have basic understanding of it for now. I would be grateful to see more of those videos!

[@donoisserious9120]

Your doing gods work here almost all of your videos should be a curriculum and taught in schools!!! I wish I had this content leaving school

[@plantpot2962]

Clear direct and to the point. Refreshing 😎

[@kemiquadri1708]

Really great insight, thanks 😊

[@cybercyber4619]

Great to find your site recently! Thank you. (Accounting important yet so mysterious to most of us:o!) A lot of your content still applies here. (NZ).

[@ShapeyFiend]

I bought a flat for investment 16 years ago at the top of a property bubble here in Ireland. It still hasn't recovered it's value, I'm paying 2200 per annum service charge and in I pay 50% tax on all rental income. Wish I'd bought a house instead it'd be worth way now more than I paid then.

[@ismeeenharuna7327]

I really enjoyed this video, it was very educative

[@mycatismolly]

Your ground rent changes to zero when you extend your lease, via a statutory lease extension. New builds also do not have service charge. Service charge on a leasehold exists to ensure maintenance and repairs. If you own a freehold you have to still bear these costs but they're just managed by you. It's not necessarily cheaper. If a roof on your freehold house needs replacing that's your cost. If you need to fix your driveway that's still your cost and you need to pay 100% of the cost, and organise it by yourself at your own time. You need to have lived in a flat 2 years to extend the lease. You can have this deferred to you on purchase by the vendor if they have lived there for two years.

[@fatimarizvi786]

More property videos please! This was very useful. Thank you!

[@bodywisetraining2469]

Great content! Keep it coming

[@fr514]

Thanks for this. And yes! to more property videos please.

[@JT_Williams]

I'd love to see a video properly explaining buy to let and the pros/cons

[@marvindee8217]

You can never have too much property information. Pls keep them coming

[@seantormey3531]

very interesting Nischa. Thank you.

[@MalluStyleMultiMedia]

I love the freedom and privacy of a house .. front yard .. backyard with no neighbors .. etc I also have condos that I rent out and the association fees per month doubled over the last few years. Another excellent video

[@gailainsley6939]

Thank you soo much for this. 🙏🏽What do you think about purchasing the flat given to you by housing association? I am looking at houses but also thinking about just purchasing my apartment instead

[@sachsuccess]

Great video Nischa! My friends keep asking me to make a video about the UK property market too so this is a really good one to show them for the meantime!

[@christopherdriving6425]

I understand what your saying and your most likely right but isn’t it good to have something in the market rather then nothing.