Is it better to buy a studio in nice area or a 1 bed in a not so nice area?

carefullycautious

Some studio flats near me have been converted very successfully into 1 bed flats.


A wall has been put up dividing the kitchen + lounge to create a private bedroom. Is something that you could do?

needhouseadvice

carefullycautious wrote: »

Some studio flats near me have been converted very successfully into 1 bed flats.


A wall has been put up dividing the kitchen + lounge to create a private bedroom. Is something that you could do?

It is actually as it has a separate sleeping area. Just needs a stud wall although I'd need to ask the freeholder for permission and they've already said it's £500 just to look into it.

Hussman

needhouseadvice wrote: »

Actually it's not even a dismal salary. It's probably a bit above average but damn London prices!

Yep London prices are horrible, I grew up in London, work in London but found that buying outside of London is cheaper even with travelling into London it still works out cheaper. With the budget we had all we could get was run down flats and no doubt that the lift would break down every week.

Outside of London we found our dream home a lovely 2 bed house 5 mins away from the m1.

needhouseadvice

Hussman wrote: »

Yep London prices are horrible, I grew up in London, work in London but found that buying outside of London is cheaper even with travelling into London it still works out cheaper. With the budget we had all we could get was run down flats and no doubt that the lift would break down every week.

Outside of London we found our dream home a lovely 2 bed house 5 mins away from the m1.

Where is that? Yeah it's so depressing. I swear 1 beds that were £200k last year have jumped to £250k. Ridiculous! I can only just afford to buy on tip toes. Also worried if I wait I'll get priced out of the market altogether.

HappyMJ

needhouseadvice wrote: »

I get that a school nearby would help resale if a family wanted to buy to be near a catchment area but surely no one would buy a studio for that purpose would they?

Renting a studio/1 bed would be even more than a mortgage in London sadly. I'd be saving less. There's no way I could buy a forever home on my dismal salary.

Whenever I've looked at BTL rental yields they show the lowest returns in London of about 3% maybe 4% gross rental returns which is cheaper than servicing a mortgage. Don't forget to count the interest you are no longer going to get on your deposit.

needhouseadvice wrote: »

Actually it's not even a dismal salary. It's probably a bit above average but damn London prices!

How about moving out of London, living and working in another part of the country?

needhouseadvice wrote: »

It is actually as it has a separate sleeping area. Just needs a stud wall although I'd need to ask the freeholder for permission and they've already said it's £500 just to look into it.

So you wouldn't even be buying the property. You're just buying a lease. It's not your property to do with as you please. That's another thing that puts me right off buying a flat. £500 every time you wish to speak to the freeholder to ask permission to do anything is too much....and they set the fees.

Hussman

needhouseadvice wrote: »

Where is that? Yeah it's so depressing. I swear 1 beds that were £200k last year have jumped to £250k. Ridiculous! I can only just afford to buy on tip toes. Also worried if I wait I'll get priced out of the market altogether.

We went to Luton, to be honest it wasn't a first option but after realising we couldn't afford London, we had to go further out, but a 2 bedroom house freehold just under 200k. Also looking at the history of the property, it gained a lot of equity over the last 10 years. It seems that a lot of people are heading out of London.

hazyjo

Parts of Walthamstow are still quite grim too, so careful where you buy. Personally, I'd not live in any of the first three areas. Not exactly great - they may improve, but they've been saying that for decades and IMO they've just got worse. Maybe Upton Park, although losing the football crowd may actually have a negative effect. Have a walk round there at night and during the day and see if you'd feel comfortable.


I would much rather buy in Walthamstow - add Leytonstone in the mix too though. They go very quick, but there have been some sold for your budget recently. Could gamble with Leyton or Wood Street, although the latter has def got pricier.


Unfortunately I think you're priced out of Highams Park. That would have been a good one.


Jx

magicpork

hazyjo wrote: »

Parts of Walthamstow are still quite grim too, so careful where you buy. Personally, I'd not live in any of the first three areas. Not exactly great - they may improve, but they've been saying that for decades and IMO they've just got worse. Maybe Upton Park, although losing the football crowd may actually have a negative effect. Have a walk round there at night and during the day and see if you'd feel comfortable.


I would much rather buy in Walthamstow - add Leytonstone in the mix too though. They go very quick, but there have been some sold for your budget recently. Could gamble with Leyton or Wood Street, although the latter has def got pricier.


Unfortunately I think you're priced out of Highams Park. That would have been a good one.


Jx

Interesting you mentioned about Leyton.. I'm in the processing of purchasing an apartment there, about 5-6 min walking from Leyton station.

I've done some research into council's plan on the surrounding areas and it seems bywaters site and the area near Coronation garden will undergo some major regenerations in the next years.

I'm not sure whether the area is 'nice to live' in general though, the crime heatmap shows the number of crimes is 'above average' but maybe better than Stratford. Do you know how it actually feels like to live in that area?

needhouseadvice

hazyjo wrote: »

Parts of Walthamstow are still quite grim too, so careful where you buy. Personally, I'd not live in any of the first three areas. Not exactly great - they may improve, but they've been saying that for decades and IMO they've just got worse. Maybe Upton Park, although losing the football crowd may actually have a negative effect. Have a walk round there at night and during the day and see if you'd feel comfortable.


I would much rather buy in Walthamstow - add Leytonstone in the mix too though. They go very quick, but there have been some sold for your budget recently. Could gamble with Leyton or Wood Street, although the latter has def got pricier.


Unfortunately I think you're priced out of Highams Park. That would have been a good one.


Jx

I'd love to live in Leyton or Leytonstone but I've noticed prices have jumped there in the past few months. A 1 bed now seems to cost around £250k. Anything less has something wrong with it like it's on a busy road for eg. I wouldn't mind Wood Street but I've not seen much come up there.

Waldorf_Statler

Albeit 12 years ago, but here's what I did in a similar situation.

I bought a larger flat in a worse area. My thinking was that i could stay there longer as it had more space, thus saving on stamp by effectively skipping a rung on the ladder.

Price-wise, my flat went up in value by less than if I had bought a small flat (for the same money) in a nicer area. But I probably would have moved sooner than I actually did (I stayed there 6 years) and it could accommodate a partner moving in (and cats too!). So notionally I saved myself a set of moving fees.

Not a direct comparison to your situation but food for thought perhaps. Key considerations are how long you'd be able to stay living in a small flat and whether the "not so nice" area is nice enough for you to be happy living in. It's your home, ultimately, so don't make yourself unhappy at the prospect of making a few extra quid. Being happy should be your first consideration.