I can certainly recommend a co-sleeper cot (we have a 'co-sleeper' brand), well, it worked for us anyway. It was wonderful having him so close, I could sleep with my hand on his chest for those first few nights when I was convinced that he was going to stop breathing. Also means that I didn't have to move for those endless night feeds. DS was pretty underweight and had to feed every two hours, even through the night, for his first two weeks... Why am I doing this again?!
DS1 slept in the co-sleeper until he was 6 months, we then bought a cot and set it up by our bed, and then moved him and the cot into his room at around 9/10 months.
Not pulled it out and set it up again yet, probably won't get around to it until Christmas.
I think you're right viper, we lived in a flat with DS and we only needed one place for him to sleep, although now we have two floors I'm thinking about a moses basket for downstairs.