1 bed flats - opinions ?

oli_ro

FTB from London here.
We are considering buying a 2bed flat, but not discounting(yet) the possibility of buying a 1bed flat as well(provided it has decent enough size and maybe garden).

I know that buying 1 bed flats is not the wisest decision one can make, but still looks attractive as it might be below the 250 mark, so less stamp duty, etc.

What do people think about this ? Pros/Cons ?

googler

Around the country, I imagine jaws are dropping in disbelief at the mere idea that a one-bed flat can be selling for £250k or slightly less...... and that you're casually talking about as an 'extra' purchase.

!!!!!!, if you're thinking of buying a one-bed at £250k, what on earth is the two-bed costing?

I can't offer anything as it's so far outside my standard sphere of reference as to be almost science fiction. Around my way, 'just' £220k will secure a new-build four bedroom detached house with lounge, kitch/dining, two en-suites, family bathroom, extra cloakroom/WC, garage, and front and back gardens......

mark5

You might outgrow it quickly!

Miss_Money_Penny-less

IMO I think the more bedrooms the better, if you can afford it. When you sell on your property will appeal to a wider market ie people with one child or those who want an office space for home working etc. It may cost a lot more than the stamp duty fees if it takes longer to sell on. Its a big decision! Good luck!

mustang1

I'm a London FTB too and I've gone for the 2 bed option for the following reasons:

1. I'll have a spare room for my guests to stay in.

2. I can rent out my spare room if I need to get some extra cash in.

3. You never know when you may become more than just you!

4. If you ever want to rent out the whole place, you'll get more money for a 2 bed rental.

Realistically though, you have to go with what you can afford. If you can't afford the expense of the extra stamp duty and higher mortgage payments on a 2 bed, then go for a really good 1 bed you will be happy living in for many years to come. Remember though that moving is an expensive business so if you would rather go for a 2 bed then save up a bigger deposit and wait a while. No point buying just for the sake of it.

Good luck.

BitterAndTwisted

That's pretty good advice Mustang but the OP was considering maybe buying a one-bed AS WELL AS a two-bed. How the other half lives eh?

Snuggles

BitterAndTwisted wrote: »

That's pretty good advice Mustang but the OP was considering maybe buying a one-bed AS WELL AS a two-bed. How the other half lives eh?

I know it reads like that, but I really don't think it's what the OP meant...

charliee_3

if it were renting i'd say a 1 bed would be fine as long as its not pokey as its short term and if you need more space in the future you could easily move, but as you are buying i would always go for a 2-bed if you can, it makes such a difference having that bit of extra space and with the housing maket being in a bit of flux at the moment you need to think long term as it may be that you will have to stay there a while if the prices drop. That extra bedroom would give you a spare room for guests (or if you have a row, or one of you has a nasty cold, or something and doesnt want to keep the other awake), or you can make it into an office, or nursery, or if times get tight, rent it out to a lodger for an extra income.
mind you it depends on the places you are looking at..i'd go for a nice spacious 1 bed with a garden in a good area over a grotty pokey 2-bed in dodgy area with no garden any day...

could you move a bit further out of London and see how much more you can get for your money? It doesnt take my other half any longer to get to liverpool street from north essex than it used to from North London...

penguine

I wouldn't think if the recession gets much deeper there's going to be a big rental market for 1-bed flats. There seem to be too many of these on the market already.

If you've got that much cash to spare, why not look at buying a bigger main property for yourselves instead?

Just to put this into perspective -- you're looking at spending a quarter of a million pounds on a one-bed flat. Does that really sound like a sensible long-term investment?

oli_ro

Thanks a lot for the replies.

Just to clarify: I did not expressed myself the original post clearly, I am only interested in buying one flat. Because of budget and location constraints I was considering 1 bed flats. I know that its not a financially wise decision(also not very practical considering the size of my family) and I think we are going to save a few more months and then go for a 2 bed flat.

I know its mad to be paying this amount of money for a flat, but this is London. Surely I could get a 4 bed detached house for this money somewhere up north, but I would also earn 1/3 the money I am earning now.

daveb975

oli_ro wrote: »

FTB from London here.
We are considering buying a 2bed flat, but not discounting(yet) the possibility of buying a 1bed flat as well(provided it has decent enough size and maybe garden).

I know that buying 1 bed flats is not the wisest decision one can make, but still looks attractive as it might be below the 250 mark, so less stamp duty, etc.

What do people think about this ? Pros/Cons ?

Do you really mean buy a 1 bed flat 'as well' as a 2 bed, or instead of a 2 bed?

I would advise against buying an investment property of any kind at the moment, as the hassle and set up costs are likely to outweigh any potential benefit, especially if house prices continue to fall.

If you are looking to buy a 1 bed instead of a 2 bed, you just need to look at your individual circumstances. I am not someone who subscribes to the view that 1 bed flats can never make good homes or can never be worth £250k, but it is worth thinking about the following:

1. Are you likely to be having children in the next five years? If so, it may be worth trying to get a 2 bed now.

2. Is this an area you will be happy in for a few years? You don't mention what part of London you are in, but certain parts seem a lot more attractive at 25 than they do at 30.

3. 1 bed flats tend to rise more in % terms than larger properties in a boom, but come down by more in a bust. The typical argument for a crash in prices is that it makes the next 'rung' on the ladder more affordable, but this is not always the case. For example, in my area, the jump from a 1 bed flat to a 3 bed semi has become bigger since 2007 rather than smaller.