One Bed Apartment

forumdedum

Please guide me if this is covered elsewhere. Ideally I'd prefer a 2 bed apartment. However, I suspect I'll be lucky to have enough to purchase one bed. What are the main cons with this?

CPTM

They're harder to sell, you can't rent out a room to help cover the mortgage in times of financial distress, and you normally need a higher mortgage deposit because of that.

forumdedum

https://www.boards.ie/discussion/comment/121004222#Comment_121004222

Thanks for that!

CPTM

https://www.boards.ie/discussion/comment/121004224#Comment_121004224

I would say if you're not perturbed by any of that, one thing I always liked about one beds is that many of them feel a bit more spacious than 2 beds. Sometimes in this country, a two bed is just a one bed but with a room squeezed in, taking space from both the first bedroom and the living room. So you end up with 3 or 4 rooms in the apartment, all of which are a bit pokey.

Whereas one beds can have a nicer sized bedroom and living area.

forumdedum

https://www.boards.ie/discussion/comment/121004256#Comment_121004256

I would never have thought of that. Great advice

3DataModem

One beds are not that hard to sell, there's a very vibrant market in Dublin.

If you ever think you might rent it out consider the following;

I have heard one landlord extol the virtues of a one-bed, as you are less likely to have a HAP tenant in it than a two-bed, and certain not to have a HAP tenant with a child (as it will be deemed unsuitable). I don't subscribe to that worldview myself, but there it is.

In my experience as a landlord one bedroom apartments have high-turnover of tenants, as single people often end up in couples, and couples often have kids. This has been exacerbated by a lot of people working-from-home (and one-bedroom apartments can suit cohabiters, but not cohabiters who both WFH).

forumdedum

https://www.boards.ie/discussion/comment/121004386#Comment_121004386

One beds are by their nature more affordable. May be my only option. I may have to rent it for a while. Does the tenant rent usually cover the mortgage?

3DataModem

https://www.boards.ie/discussion/comment/121004461#Comment_121004461

If you are borrowing say 80% of the purchase price, then you can expect to be in negative cashflow for the forseeable.

Value: 250k

Mortgage: 200k over 20 years at 4%

Rent will be about 1800 per month

Mortgage will be about 1200 per month of which about 700 will be deductible (initially).

Assume about 500 per month other expenses (conservatively) based on 200 per month management fee, 200 per month agency fees (8% plus VAT), 100 per month other stuff.

• Tax bill will be: 1800 - 500 - 700 = 600 * 50% = 300 per month
• Cashflow will be: 1800 - 500 - 1200 - 300 = -200 per month

So it's pretty close to being cashflow neutral, but still 200 negative.

HOWEVER

• Rents are high, will come down most likely. A drop of 10% in rent adds 150 to your negative cashflow.
• Interest rates are going up, will go up further most likely. An increase of 1% adds 80 to your negative cashflow.
• Occupancy for one bedrooms is very high, but not 100%. A gap month costs you 1500.

HOWEVER HOWEVER

• Even if the value doesn't go up, you are paying 500 off the mortgage a month, so if your negative cashflow is less than 500, you are long term profitable. It just won't feel like it.

3DataModem

https://www.boards.ie/discussion/comment/121005652#Comment_121005652

And one more thing, if your solution to this is "I will keep expenses low" or "I won't get a letting agent" then you are just going to likely end up as a bad landlord that people complain about all the time on this sub. If your solution to this is "I will let to a mate and just won't pay my taxes" then you are just a bad citizen.

DownByTheGarden

There are pros and cons, but here is my view on it.

A one bed will sell just as fast as anything else. Faster these days because the councils are going crazy buying them.

Also easier to rent out and maintain than a 2 bed.

Having owned and rented 2 bed properties, if i was to get back into the business which i wont be, id rather rent a couple of 1 beds out than a 2 bed.

To live I preferred a 1 bed when single or as a couple as they are all round much more spacious than 2 beds in the same developments. The 2 beds are always only a little bigger square footage wise than the 1 beds but everything gets more squashed to fit the second bedroom in.

I would say though dont by a 1 bed less than about 55sqm and dont buy a 2 bed less than about 70sqm. There are some apartments for sale that ive seen that wouldnt even be bedsit size. If you can walk from one wall of the living room to the opposite in 2 or 3 steps, like seems to be the size on sale nowadays, just forget about it. For a living room 12ft x 12ft (and thats not including kitchen) is the smallest you should be going for in both a 1 bed or a 2 bed apartments. Ive been in a lot of apartments which have tiny living rooms. Just avoid them

tesla_newbie

https://www.boards.ie/discussion/2058310080/one-bed-apartment

None bar you usually require a larger deposit, ignore the nonsense about being unable to sell , a one bed apartment in a good location trumps a house in an undesirable location every time

perfect good choice

RichardAnd

https://www.boards.ie/discussion/comment/121006543#Comment_121006543

I second this. I bought a 3-bedroom house in Wexford at the urging of my family, and I regret it utterly. If you offered me a straight up trade for a 1-bedroom apartment in a suitable location in Dublin, I'd take it with no issue.

Location trumps space in most cases, if you buy a 1 bed invest in a good sofa bed for when you have guests.

o1s1n

Having lived in a one bed in D1 for years and now renting it out to other folks I agree with the above.

You can indeed get them for a good deal cheaper than 2 beds in the same complex but not too far off size wise. My one is 60sqm and you could actually squeeze another bedroom in if you split the living room in half.

Guests staying over is a bit of an issue alright, I bought a really nice fold out couch that did the trick.

Storage could be a problem. My spot was lucky to be the top floor so has attic storage overhead. Might be worth having a think about when you're viewing.

If I remember correctly, my management fee is less than those with two beds.

Renting it out was a breeze and as mentioned, it was either to a couple or a single person so didn't have to worry about folks subletting. Due to the location they're also selling really quickly.

Even though I'm off now living in a house in another (far safer!) part of the city, I do miss living there sometimes.

Ezeoul

https://www.boards.ie/discussion/comment/121004256#Comment_121004256

I agree with this. A family member recently downsized to a one bed apartment, and the living space and bedroom are both decent sized, and don't feel cramped whereas the two-bed apartments in the same complex did feel much more pokey. The bathroom was also a generous size.

But, there is the advantage of being able to rent-a-room with a two bed. Best of luck with your decision.

tesla_newbie

https://www.boards.ie/discussion/comment/121006587#Comment_121006587

Some people just love telling others that they are doing the wrong thing

RichardAnd

https://www.boards.ie/discussion/comment/121006781#Comment_121006781

Yup. The trick is to know what is good advice and what isn't :(

johnnyskeleton

https://www.boards.ie/discussion/comment/121004461#Comment_121004461

I would be a bit concerned about your reasons for buying and, while of course you do you and make your own decisions etc, I would maybe think more about why you are buying.

It sounds to me like you want to buy without necessarily having decided if you will live in the property or rent it out. I would be cautious about doing this.

Generally, there are three standard reasons to buy - you want to live there yourself, you want to buy it to rent out as a second income/pension or you want to buy it because you have cash doing nothing and you want to be a property owner.

If you want to live there yourself, ask are your circumstances likely to change in the medium term e.g. 5 years or more. Could you get married, have kids, etc requiring more bedrooms? Do you want to live on your own (or as a couple) or would you rather live with someone like a friend/relative etc. A one bed is a perfect option if you are single or a couple without kids and it is unlikely to change any time soon, you can comfortably afford it and you don't want to live with other people.

If any of those assumptions don't apply, then a one bed might not be ideal. As others have pointed out, a second or more bedroom can be rented out in a financial pinch, or can be used for e.g. expanding family etc.

The situation is also different if you can comfortably afford to buy. If a one bed costs 250k and you have all or most of that in cash, you have the comfort of saying that you could buy it now but, even if your circumstances change next year, you can most likely sell it very easily no matter what happens in your personal or financial life or if the market changes. If you are put pin to collar to buy a one bed apartment, on the other hand, you will have to be reasonably certain that it is suitable for your accommodation needs in the medium to long term.

If you are buying to rent out, just remember that this is an investment i.e. a commercial decision. It's up to you to assess if the benefits work out and there is always risk. Rent on a given one bed might exceed your mortgage repayment right now, but rents can go down, sometimes you can't get tenants and there is always the risk that the tenant will stop paying and so the mortgage will not be paid in a given month or months. This is a business, and all businesses carry risk. If you want someone to tell you to buy and that the rent will cover the mortgage be very careful. No one can truthfully tell you what will happen, and you have to take the relevant risks.

If your motivation for buying is just to be a property owner, and you haven't decided whether to rent it out or live there, my advice is to think really carefully as to why you want to buy, and why you want to buy now. It could make sense to wait a while and see what the market does. It could make sense to see how your personal or financial circumstances change in future. Buying a property now just to own a property is not a particularly sensible reason for doing it. Again, you do you etc, but maybe just think about what you really want to achieve from buying.

Purchasing property has risks and rewards. You need to be fully aware of all of these factors when making such an important decision.

forumdedum

https://www.boards.ie/discussion/comment/121011088#Comment_121011088

Really appreciate this advice.My preference is to live in the property. I wouldn't anywhere near €250,000 cash. I think I'm looking at between €370,000 and €550,000 in the area I need to be in order to be closer to work.

I probably don't want to be a landlord

DownByTheGarden

https://www.boards.ie/discussion/comment/121014373#Comment_121014373

Everyones circumstances change more than once.

Id bet that 90% of people here who bought apartments, their circumstances changed lots of times over the years. Some rented them, some lived in them, some traded up, some just sold and rented. But one thing is for certain nowadays. Noone who ever bought when they did regretted it 15 years later. Plenty regretted it a few years after a crash, but if they rode it out then they are certaionly glad they bought by now. Also you are getting so many now deciding that being a landlord is not what they were expecting or has changed due to this and that and is no more for them and they will sell up now.

But most will say its better to have bought and sold / moved than to have never bought at all :)

o1s1n

https://www.boards.ie/discussion/comment/121014373#Comment_121014373

If you've up to 550k to play with you'll get a hell of a lot more than just a 1 bed apartment.

What kind of general area are you looking at?

forumdedum

https://www.boards.ie/discussion/comment/121017384#Comment_121017384

I don't think I have €550k to play with. I'd say between €340k and €450k at a stretch. Dublin 7 or wherever is close to Grangegorman Lower.

o1s1n

Funnily enough that's my neck of the woods. If you can get up to 450k you can get a nice two up two down brick cottage in Stoneybatter.

Something along these lines:

https://propertyshopmanorst.ie/property/43-harold-road-stoneybatter-dublin-7-d07-eay1/

forumdedum

https://www.boards.ie/discussion/comment/121047558#Comment_121047558

Looks good. The prices have gone crazy in D7.

pc7

One good thing about a house over an apartment is no management fees, friends have seen their fees rise and rise over the last few years.

forumdedum

https://www.boards.ie/discussion/comment/121051945#Comment_121051945

Yes, just saw an apartment with €3,500 per annum management fees.

herbalplants

https://www.boards.ie/discussion/comment/121051945#Comment_121051945

No fees and no neighbours that can flood your apartment because they left the tap open.

I saw today a 2 bed apartment advertised for sale for 450k in Smithfield, absolutely madness.

forumdedum

https://www.boards.ie/discussion/comment/121053004#Comment_121053004

The property prices have gone bananas. They were bananas and yet still climbing.

RichardAnd

https://www.boards.ie/discussion/comment/121053040#Comment_121053040

Aren't you reassured by the minor slowdown of price rises? Why the market is practically in free-fall....better have another lockdown!

forumdedum

https://www.boards.ie/discussion/comment/121054843#Comment_121054843

I don't really understand your post