To ask if a studio flat is a good buy?

[girlfriend44]

Seen a Studio for sale. It's freehold too.
Are Studios popular, would it make money renting it out or do folks prefer flats with a separate bedroom today?

In my area there are lots of studios to rent - ideal for single people who can't afford a one bed as they have nobody to split the rent and bills with.
One beds will always bring in more money though

How does a freehold flat work? Is it a bungalow?

Most people get a studio flat because it's all they can afford, so it doesn't really matter what they'd prefer. If the rent's good for the area you'll get tenants.

No-one can say.

It depends how much it costs and what you can rent it for. Plus how bills/service charges work. Included or paid by the tenant?

What is the property like, space wise, is it in a desirable area?

What is demand like in the area? Wages:rent ratios?

Most people would want a separate bedroom if they could afford one, but then again, it might be desirable in somewhere like London as a crash pad for someone who works there in the week and goes home at weekends as an alternative to a hotel.

A studio bungalow, aka a garage conversion? You do see them, but a lot don't have planning permission, so couldn't be sold anyway.

As a PP said, most people would prefer a one bedroom flat but it's a question of what they can afford in the location they want to be in. Studios always rent pretty easily though as they are usually the least expensive option in the area.

My first rented flat was a studio. It's better than a house share but more affordable than a 1 bed.

There will be a market for them.

It completely depends on price and location.

Huh? It just means you own a share of the freehold of the whole building.

It can be more difficult to get a mortgage on a studio.

Well most people would prefer a one bed, or even a two bed but naturally sometimes you have to make do with what you can afford.

Well it obviously depends on the price. If you’re buying a studio flat in central London for £200,000 then it’s a great purchase. If you’re buying one in North Wales for £2,000,000 then obviously not. People rent studio flats because they can’t afford to rent something bigger - so you’d have to let it out for less money than larger flats. They’re decreasing in popularity compared to larger properties so the rate at which the value increases is lower - it’s still an increase though and may start to plateau if the housing market takes a hit. Presumably, if you could afford to buy a larger property then you wouldn’t be entertaining buying a studio, right?

I have a studio i rent out. Never have any issues getting tenants but its cheap, well maintained and in a perfect location.

Things to consider

Can you afford the repayments (plus council tax, insurance, etc) if its empty. Or if the tenant doesnt pay rent.

What EPC band is it, how much will it cost to bring up to at least a band C (insulation, double glazing, etc). By 2025 the rules are changing.

My previous tenants were all relatively short term, they'd stay for max 1-3 years then move for work, or move in with a partner. So studio's tend to have a higher turnover of tenants (although my current one has lived there for 5+ years)

Also, do you know a good, reliable trustworthy electrician, plumber, etc that can come and fix issues quickly if something does break in the flat?

Please double check the freehold/leashold status very carefully as that sounds unusual. And what you'd be responsible for paying, e.g. If it needs a new roof where will that money come from.

Do you know what legal responsibilities you have as a landlord?
Will you be able to get a buy to let mortgage?

Not London, mortgage not needed. Thanks.

People don't inherently prefer studios to 1 beds, they buy or rent them because that's what's affordable for them in their desired location.

Also depends on size, facilities, whether it needs a Murphy bed, that kind of thing.

Ask yourself why someone would buythat studio rather than a 1 bed slightly further out.