Are London Studio Flats Underrated?
Who in their right mind would purchase a studio flat to live in, right?
They’re small…
They don’t have a separate bedroom…
Surely they’re really to buy as investment properties?
Well, let’s have a look into the pros and cons (or ‘cons and pros’ as I’m starting with the cons first!)…
Cons:
They are clearly small properties.
They typically have a lower sale value, hence they are not always the best properties to actually purchase.
With coronavirus, could buying a studio flat become even less desirable in the future, thus further affecting resale value?
It often feels cramped when a couple is living in a studio flat.
Less overall space tends to mean less storage space.
You have to use every square foot of space as efficiently as possible.
Pros:
They offer potential home buyers the opportunity to live in postcodes such as SW1, W1, SW3, etc, when they may not be able to if they were looking to buy a 1 bed flat.
They are perfect as a pied a terre.
They allow people the opportunity to live in the heart of London (or a similar city in England!).
If you buy a larger studio flat, there could be the potential to convert it to a 1 bed flat, thus raising it’s value.
Your heating costs will likely be lower.
You could (potentially - if there is enough room) create a mezzanine level for your bed, making it feel more separate to the living area.
So, have any of these cons and pros made you consider looking into buying a studio flat?
“If you buy a larger studio flat, there could be the potential to convert it to a 1 bed flat, thus raising it’s value.”
Let’s look at some recent sales in the SW1, W1 and SW3 postcodes:
SW3
Size= 190 sq ft studio flat.
Sold Price= £315,000.
Price/ sq ft= £1,658.
SW1
Size= 420 sq ft studio flat.
Sold Price= £545,000.
Price/ sq ft= £1,298.
W1
Size= 442 sq ft studio flat.
Sold Price= £480,000.
Price/ sq ft= £1,086.
SW3
Size= 288 sq ft studio flat.
Sold Price= £475,000.
Price/ sq ft= £1,649.
SW1
Size= 272 sq ft studio flat.
Sold Price= £380,000.
Price/ sq ft= £1,397.
W1
Size= 248 sq ft studio flat.
Sold Price= £285,000.
Price/ sq ft= £1,149.
Would you look into buying a studio flat in the heart of Prime Central London if you were buying at these price ranges?