1 Bed Apartment V 2 Bed Apartment

C

Cracker

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Hi

I have recently put a deposit on 2-bedroomed apartment and am having some difficutly securing the finance for it (450k). There is a one bedroomed apt in the same development for 350K which I would definitely get a mortgage for. I a moving into the apt on my own and neve intende to have a lodger anyhow.

Is there a good resale value on 1 bed apartments and good rental potential if in a few years time I wanted to sell it on?

Which should I buy, 1 bed or 2 bed???

All advice welcome!

Cracker
 
You may have difficulty getting mortgage approval for a one bedroom property..............this is due the limited resale value/marketability of such properties.

I know 100% mortgages are generally not available for 1 beds. Approval in principal is never the same as an actual offer and your broker, or bank when given all the facts could come up with something very different to what you thought they were offering.

Have your thought of rent a room for the larger 2 bed ? This may secure you more money, and eleviate the pressure for yourself , esp with rising interest rates.
 
Just an aside on room rental - there are hundreds of ad's on daft.ie and gumtree.ie for rooms to let; don't automatically assume you will be able to get the tenant of choice because there is a LOT of slack in the room rental market......

Sarah

www.rea.ie
 
I'm not an expert, but I would think it depends on the size of the property. For example, if the second bedroom was very small, you may have problems renting it out for the price you need to cover your mortgage.

One bedroom apartments tend not to appreciate as fast as two bedroom apartments, but of course the mortgage would be a lot more manageable for one beds and you could pay it off quicker...no easy answer there, more really what suits your lifestyle and circumstances.

Speaking from a personal perspective - as one half of a couple, I'd only be interested in renting a one bedroom property, as I don't want to share with strangers but also don't want to pay an extra 300 upwards for a spare bedroom.
 
I have a lovely 1 bed which has gone up at least €75k since I bought last year. I bought a 1 bed as I don't want to share with others just to be able to pay the mortgage. You may as well be renting if you do that. Your place is not your own.
Also its great not worrying about a bigger mortgage on my own. I can live same life as I was when renting. Interest rate rises are not a worry.
Thats the main point. Struggling to pay the mortgage just to have an extra room. Sitting in on a sat night looking at your extra room!!
 
Cracker we were thinking about renting out our one bed apartment (instead of selling which we ended up doing) and were advised one beds rent easier than two beds because they're cheaper to rent (obviously) and generally the difference between one and two bed apartments size wise is negligable ... Similar to Hellojed's post really - one beds are often aimed at couples to rent and most are happy without the second bedroom.

Anyway, we ended up selling our one bed and made enough profit to trade up ;)
 
SNB said:
You may have difficulty getting mortgage approval for a one bedroom property..............this is due the limited resale value/marketability of such properties.

This is not true from my experience. As properties prices rise, the one bed apt will become the new starter home. Check any development with one bed apts and ask which type have sold out first.

As for rentability, it is easier to rent a one bed than a two due to the fact that there are far less of them. Daft today has approx 1300 two beds and 400 1 beds for rent in Dublin city.
Click to expand...
 
1 beds are the way to go.. apts are generally to small for strangers to be sharing (ie the 2 bed) and they would usually rent a house instead (i would anyway, wouldn't you) whereas 1 beds will interest couples. 1 beds easier to sell as well in my experience

Mav
 
1 bed definitely the way to got if you are thinking of renting it. As said above mainly couples rent 1 beds. This has advantages in that they tend to make a home of the place rather than use it as a passing roof.
Also less running costs for you.

Also you get more money as a percentage of the mortgage cost than you do a 2 bed.

Huge difference in price if you jump up to a 2 bed.

2 beds are great if you intend to live in it and rent a room to someone else.
 
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