Andrew Donnelly, CEO of property marketing firm Whiterock Capital Partners, says studios can command rental yields of 1% to 1.5% higher than one-bedroom and two-bedroom apartments. Vitale said Potts Point studios tend to be among the smallest in Sydney, typically measuring between 17 and 30 square metres. He recommends buyers think twice about apartments with lifts, swimming pools, gyms and a concierge, because the strata costs “really throw out your budget”. Location is always important in any property investment, but more so for studio properties. They want affordable, modern, stylish, and manageable houses, something that developers have been very quick to cater to. “A small property in a good location is better than a big property in a poor location. Here's my personal take on Studio Apartments (aka Shoebox Units, Mickey Mouse Units). You may be better off buying a few investment properties that are already rented in smaller markets like Dayton OH Most people don’t know how real estate works. With all investments there is always risks, with the right research a studi flat could be the best buy for you. You can check how much you need to pay as stamp duty by using the various calculators on real estate portals, such as stampdutycalculator.org or hmrc.gov.uk. “The banks are worried that there is a more limited resale market for studio apartments,” Dargan said. So you shouldn’t buy an investment property if: 1. Hey Gabriel, Great question! Note: The views expressed are the author’s own and do not reflect in any way, the views of Aspen Woolf. 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Is buying a studio apartment a good investment? This Article was written by Harri Laitalainen, a property investment fanatic, marketing professional, and lover of Boston Terriers. Studio apartments are low-maintenance, affordable and concentrated in the trendiest parts of town. Another good option that many people don’t think about is if it’s close to a major medical hub or hospital. Disclaimer: I'm a seller employed with a large real estate firm in India and it's in my industry's interest to make sure people are buying. Flats are increasing in popularity and proving to be a high performing investment choice. This is why they are the most affordable options in a building project. Property analyst and managing director of SQM Research Louis Christopher said studios continue to offer higher yields than other property types even as overall rental yields have fallen over the past 12 months. Investing money in a property is not an easy task. 1 Replies 2908 Views Last Reply: 8 years ago. Well, thanks for the A2A. Department for Communities and Local Government, Increased security (provided it isn’t a basement or ground floor apartment), A range of sports and leisure facilities may be provided, Community living with lots of social contacts and the companionship of close neighbours, Communal serviced gardens, lawn and pool maintenance if available, The ability to live in a location where owning a house would be expensive, e.g. Let’s take a quick look at these. Are studio apartments good for investment or rental? Utilities and commuting have become more expensive. If you are looking for a buy-to-let for young professionals then you should buy be near a workplace hub and/or city centre as this will guarantee a steady stream of tenants or future buyers. Location is even more important when your property footprint is tiny. Supplied. For instance, if you buy a flat worth £125,000 in Liverpool, the stamp duty will be absolutely free. Find out if any major government projects are coming up as this will enhance the resale value of your house. Whether you are buying the property with a mortgage or paying cash, you need to ensure that you can afford the property. It is also hard to predict rental income, but it is usually a more reliant variable as even if a property value decreases due to economic conditions, usually rental incomes stay relatively the same. Usually studio flats are of a smaller size and so a lower price than one bedroom and two bedroom apartments. Otto Dargan, managing director of Home Loan Experts, said many lenders have a policy that a property must be larger than 40 square metres, or sometimes 50 square metres, before they will consider providing a loan. However, he says investors after quick capital gains should steer clear of studios. Property investment: 'Don't choose flats, go for houses' ... 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