Buying a studio flat

GDB2222

The number of people who come on this board desperate to sell a 1-bed or studio flat. Generally, fewer probs for people with two bedders. There's room to start a family or to take in a lodger. Just a thought .....

kwmlondon

GDB2222 wrote: »

The number of people who come on this board desperate to sell a 1-bed or studio flat. Generally, fewer probs for people with two bedders. There's room to start a family or to take in a lodger. Just a thought .....

Yes, and it's easier to sell a place in Central London, but not everyone can afford a two-bed place.

Also, I'd say you're better off with a studio flat in a desirable area than a two bed place in a post-code with slow-moving properties.

If you can afford a two bed place in a busy and desirable are then go for it, but for most of us we're weighing up a series of compromises.

I had a 1 bed place on the market for a week before it sold. It had 3 viewings the day it went on rightmove. Where I live 1 bed places are more desirable than 2 beds because so many people want to get on the property ladder around here and first time buyers can't afford the bigger places so they sell, but they take a bit longer.

hazyjo

If it was a highrise in Leyton, you'd probably not get a mortgage. Or a studio in the back of beyond with no tube. But a lot of the more desirable flats in places like E1, E3, N1, SE1 etc are highrise ones. The modern blocks going up are on many levels, most with a 'posh reception'. Several lawyers where I work live in such buildings, and the higher up you go, generally the pricier they are (quieter, better views, etc).

All you can do really is compare against sold similar nearby properties. Try not to pay over the odds cos it's new cos the second you step foot over the threshold, it's 'second hand' and will probably command the same prices as other non-new builds. New builds often command a high premium, especially these 'glossy shiny new' ones.

A pied a terre is more a second occasional property - if you let it out, it won't really be that. You need to check the lease carefully to check you'd even be allowed to let it. Also, you would need permission from your lender. And don't forget you'd also need a deposit, etc for the next property so it might not be an option in a few years' time (maybe longer term, or if you end up buying with someone else or moving into theirs...).

You won't get a guarantee with anything that you will break even if you sell, let alone make a profit. I bought for £227k in 2006 and sold in 2011 for £228k - add to that all the fees, expenses and improvements (new roof, gutters, etc, kitchen, some flooring, combi-boiler, etc) and I suppose in effect I was quids down even though not in debt or negative equity.

Being near a tube station will nearly always be a huge plus for London. Studios can be a risk when it comes to selling, but I don't think one beds are much better. A two bed would be preferable obviously, but that'll be out of your price range.

Would you consider a different area to get more for your money?

See how things nearby are selling too. Plus the new block you're buying into.

Flats with lifts can incur high service charges so be careful with that too!

Jx

EmilyG2010

Thanks Hazjo

Service charge is really cheap on this block which is what I like (I realise charges can go up though!) If I were to buy a bigger place for the same money then I'd have a big commute. Plus move into an area I don't know or buy a dump in this area.
I am planning to variously use the place as a pied a terre and to let it out. However I also need, as security, the option of selling it. I don't mind not taking a profit... but a loss of a 100+K would be too much to bear.

Interestingly in this block the studios lower down sold like hot cakes, the higher up ones were slower. I assumed this was mainly due to investor's thinking they couldn't get such a high letting yield.

A slight down point is the place is next to a very busy and noisy road - yes still audible on the 16th floor! However, I figure traffic noise is pretty much a given in London, especially if you want a place with good transport links.

Guest101

Just a question - u say u dont think it will affect you getting a mortgage? - You do have a mortgage in place dont you, if your due to exchange contracts??

EmilyG2010

Thanks Guest
I don't have a mortgage in place but am waiting for this in order to exchange - won't be exchanging without!

Guest101

ok good! just making sure

[Deleted User]

EmilyG2010 wrote: »

I've been doing some research and there's a building called Pan Peninsula in trendy Canary Wharf which has around 50 studio flats currently for resale. It doesn't look like these are selling too well...

I almost ended up living in that building. The problem with Pan Peninsula is that while it's an incredible building with excellent amenities and fantastic views... the apartments are absolutely tiny.

The studios are not suitable to "live" in, the rents are upwards of £1750/m and it fits a bed and that's about it, oh and they have really strange floor + walls. Even the one bedrooms in that building are very small, it's only once you start looking at the two bedrooms or more than it becomes a high standard of living and at that point the prices are north of £2500/m rent, or £700k+ to buy.

There are buyers out there for studio flats, Pan Peninsula shouldn't be what you use to benchmark studio flat sales against, because they're looking for £300,000+ for space smaller than the single room I'm sitting in right now. The Pan Peninsula studios are <280 square feet for >£300,000. If someone can afford a studio flat in that building, they can probably afford to go a bit higher and get a one bed or two bed, the difference between a studio and one bed is huge and the difference between a studio and a two bed isn't even in the same world.

It's the difference between buying a mid-range Ford Fiesta for £50k or a Mercedes AMG for £70k, nobody would pick the Fiesta.

Studio:



Two-bed lounge:



As an aside, I was so close to pulling the trigger on moving into one of the two bedrooms with amazing views over the city, however I just couldn't make that much of a poor financial decision... I think I'll regret not doing it for the rest of my life.