There is no denial that the UK is fairly expensive when it comes to property prices, and not many people can afford to become home owners. However, it doesn’t cost anything to dream, and most people are saving to make that dream come true one day.
Waiting until you save enough to buy a house could mean you’ll have to spend a couple of years renting or living with your family, but if this is no longer an option for you, and you are ready to live independently, buying a studio flat could be a good alternative. Here we list out the pros and cons you should know if you are considering purchasing a studio as your first home:
Pros of living in a studio flat:
Cheaper to buy and to maintain
Due to their size, studio apartments are cheaper than those with one or multiple bedrooms. A studio apartment condenses a living room and a bedroom into one room and it usually comes with a small bathroom as well. This makes it perfect for a single person who likes being independent but can’t afford to buy a house.
Easier to clean and keep tidy
Going back to the size of a studio flat, in some cases smaller is better. When it comes to studio apartments, the small space can be an advantage as it means you will spend less time cleaning it and keeping it tidy.
Simultaneously, because of their size, they are easier to maintain and look after which is always a plus for someone short on a budget.
High rental yield
If you are considering renting out your studio apartment, you can expect the rental yield to be good. In fact, the rental yield for a studio is 6% compared to the 3-4% you usually get for bigger units. So if you are looking to become a landlord, a studio apartment will be a great choice.
Cons of living in a studio flat:
While there are some benefits to owning a small property as mentioned previously, this could also be a con for some. While this could work if you are a single professional, if you are thinking of starting a family soon the space could prove to be too little for you. In which case you will want to sell your studio apartment not long after buying it – meaning you may not make as much money on it as you’d have liked
Difficulty when selling your studio apartment
Selling your studio flat can be difficult. Your pool of potential buyers is a lot smaller than when selling a one bedroom flat. This is because you’re no longer an option for first-time buyers (usually a couple, on the verge of having children some point soon) or for families
If the time does come for you to sell your studio apartment, it’s best to make it appealing for potential buyers. You can do so by making sure that you:
- Get rid of clutter and make it nice and tidy
- Maximise light to make it seem bigger
- Utilise mirrors to visually increase the size of your studio
- Fight the right agent that will know who to cater the apartment to
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