Is buying a studio flat a bad investment?

[Alittleditsy]

Thinking of buying a studio flat as I’m on a limited budget, and property is so expensive in my area (Brighton).

Options are a teeny tiny dark one bed flat, or a brighter, and sometimes more spacious, studio flat.

I know I should look at 30 sq metres or over as some mortgage lenders don’t lend on studios smaller than 30 and it can affect resale ability due to that.

Has anyone bought a studio flat and successfully sold them on and upsized 2-3 years down the line?

I hear loads of people saying they’re a bad buy unless you’re an investor and plan to rent it out, as they can be hard to sell on.

But I feel like in an expensive area like Brighton there will always be demand for those cheaper properties as there will always be people such as myself who can’t afford to get on the property ladder any other way!
(Have decided shared ownership is not right for me).

The general opinion on here is avoid....maybe go a little further out to get something with a garden or outdoor space....??

In a buyers market, they are always going to be the least popular. So if you think you will want to move within a small time frame / small window, then I wouldn't buy a studio apartment if I could afford a 1 bed flat.

Of course, as you say, there will always be 'someone like you' who doesn't have much to spend, but it narrows the market.

We bought the house we live in which is a big house, but some people wouldn't want to live here for reasons we can't change (to do with location). We looked at it as being worthwhile for us, because we planned to live here a long time, and the family have grown up in a much bigger house / garden than we could have afforded without the negative point about the location - so, it's suited us for 20 years or so, even though we know we will have fewer people who want to live here when we do come to sell than if we'd bought smaller / different location. If you plan to sell in a couple of years though and you will have to live in what we used to call a bedsit, then I can't see what you would be gaining.

I think a large-ish, bright studioo in good location within Brightom is still a good choice, just needs to be the top end of studios. It should stay attarctive to airbnb / BTL investors when you come to sell, as well as FTB with low budget but after an easy lively location, provided service charges are not crazy.

As above said, a large well presented studio in Brighton will sell in future, but not a small dingy one, if you can go a mile out and but a proper one bed then do it or even slightly further for a terraced house and so o, maybe get financial advise for an hour to weigh up everything

A nice studio will always be popular, with investors and first time buyers. At large amount of the population (including me) would much rather live in a studio in a place they love than a bigger house further out. You get a very specific demographic commenting on property here, who generally put bigger kitchen/spare bedroom above area with active nightlife/close to unis and social scene.

A lot of older people are repulsed by the idea of properties where guests can see the bedroom area, most young people/Brighton/London types have no issue with that.

So go with what suits you!!! I live in a studio, and no I would never rather move out 2 zones so I can have a garden and another bedroom! I’d gouge my eyes out first!!

Thanks all! Really useful to hear.

I agree @Flowers500 there will always be a younger demographic who value nightlife, close proximity to the centre of the city etc. so there will always be a need for properties on the cheaper end of the market.

Having said that, I would agree with other posters too that getting one as bright and spacious as I can is only going to help resale in the future!

I lived aboard in Stockholm and always lived in studios there and loved it.

@Flowers500

A nice studio will always be popular, with investors and first time buyers. At large amount of the population (including me) would much rather live in a studio in a place they love than a bigger house further out. You get a very specific demographic commenting on property here, who generally put bigger kitchen/spare bedroom above area with active nightlife/close to unis and social scene.

A lot of older people are repulsed by the idea of properties where guests can see the bedroom area, most young people/Brighton/London types have no issue with that.

So go with what suits you!!! I live in a studio, and no I would never rather move out 2 zones so I can have a garden and another bedroom! I’d gouge my eyes out first!!

I live in a studio in wembley park and to be honest if mine wasn't as nice here I would've gone further out to look at more space for the same money

I don't think it'll be a problem in Brighton. Location plays a huge part.

If you plan to sell in a couple of years though and you will have to live in what we used to call a bedsit, then I can't see what you would be gaining.

Oh gosh, I only just realised 'studio flats' are the old bedsits. I can see why they renamed it because bedsit sounds so depressing and conjures up images of lonely men who've split from their wives

I think the layout is important. Can you share the floor plan perhaps.

Many moons ago, our first flat in zone 1 was a studio (riverside with a view of Thames meant we comprised on size). We had a king size bed built partly into a fitted window seat area to maximise space. It worked really well.

Also, BIL bought a studio flat in zone 1 (South Kensington) a few years ago and managed to cleverly turn it into a one bed with custom fitted wardrobes as a room divider with sliding doors.

Bedsits were different to studios because usually the bathroom was separate and shared. A studio is entirely self-sufficient.

Studios can be popular as a pied-a-terre if in a great location with many people who work there Mon-Friday. But if the choice is between an entry level 1 bed versus a spacious top-of-the-range studio.

(finishing that sentence) I would recommend the entry level one bed.

@PoshWatchShitShoes no specific floor plan just yet, more just asking in general to see if it’s a good idea!

@PoshWatchShitShoes converting a studio into a 1 bed if workable is a great way to increase value. I’ve been advised the ones big enough to do that go like hot cakes to developers so you have to move quickly!