CapEx Properties

buying investment property in UK,

When it comes to buying investment property in UK, one of the fundamental decisions investors face is whether to opt for a 1-bedroom or a 2-bedroom apartment. Each option comes with its own set of considerations, influenced by factors such as target market, location, budget, and investment objectives. Let's delve into the nuances of each choice to help you make a more informed decision.

 

  1. 1-Bedroom Apartments

1-bedroom apartments offer a compact yet functional living space tailored to the needs of individuals, couples, or small households. Typically consisting of a bedroom, a bathroom, a kitchen, and a living area, these units prioritise efficiency and simplicity. The bedroom serves as a private retreat, providing ample space for rest and relaxation. The kitchen area is often designed for practicality, equipped with essential appliances and sufficient storage options. In the living area, tenants can enjoy a cozy space for entertainment, dining, or work. With its smaller footprint, a 1-bedroom apartment requires minimal maintenance, making it an attractive option for landlords seeking hassle-free rental properties. Overall, the key features of a 1-bedroom apartment cater to the lifestyle preferences of single professionals, young couples, or students, offering affordability, convenience, and comfort in a compact package.

  • Affordability

One of the primary advantages of 1-bedroom apartments is their affordability. Because their prices are basically a factor of cost-per-square-foot, these smaller units are typically priced lower than their larger 2 bedroom counterparts, making them an attractive option for investors with limited capital.

 

  • Tenant Market

1-bedroom apartments cater well to single professionals, young couples, and students who are seeking accommodation. In areas with high rental demand, such units can be quickly tenanted, ensuring a steady stream of income for landlords.

 

  • Lower Maintenance

With fewer rooms and a smaller footprint, 1-bedroom apartments generally require less maintenance compared to their larger counterparts. This translates to potentially lower maintenance costs for landlords.

 

  • Risk Management

The smaller size of 1-bedroom apartments also mitigates vacancy risks. In the event of tenant turnover, landlords may find it easier to secure new tenants for these units compared to larger properties, reducing potential income loss.

 

  • ROI

Due to their lower capital cost and competitive rental yields, 1-bedroom apartments often offer favourable returns on investment in the short to medium term.

 

  1. 2-Bedroom Apartments

2-bedroom apartments offer a more spacious and versatile living environment, accommodating a wider range of tenants and lifestyles. Beyond the primary bedroom, which provides ample space for rest and relaxation, these units include an additional bedroom that can serve various purposes. Whether it's for accommodating roommates, a growing family, or creating a dedicated home office space, the second bedroom adds flexibility to the apartment's layout. Alongside the bedrooms, tenants benefit from a well-appointed kitchen, a comfortable living area, and often two bathrooms, providing added convenience and privacy. The larger footprint of a 2-bedroom apartment allows for more extensive living and dining areas, ideal for entertaining guests or hosting gatherings. With its versatility and potential for catering to different tenant demographics, 2-bedroom apartments offer landlords the opportunity to maximize rental income while providing tenants with spacious, functional, and comfortable living spaces.

 

  • Versatility

2-bedroom apartments boast greater versatility in attracting tenants. They appeal to a broader demographic, including small families, roommates, couples with children, and individuals in need of extra space for purposes such as a home office.

 

  • Higher Rental Income

Generally, 2-bedroom apartments command higher rental income compared to their 1-bedroom counterparts due to the additional bedroom. However, this potential increase in income must be weighed against the higher purchase price and associated costs.

 

  • Resale Value

While larger units may have slightly lower potential for appreciation over time due to their higher price points, they still hold value in the market. Investors should carefully consider the balance between rental income and potential capital appreciation.

 

  • Tenant Stability

Families or couples renting 2-bedroom apartments may exhibit greater stability, leading to longer tenancies and consistent rental income. This stability can be advantageous for landlords seeking reliable cash flow.

 

  • ROI

Despite offering higher rental income potential, 2-bedroom apartments may yield slightly lower returns on investment in the short to medium term due to their higher upfront costs.

 

In conclusion, the decision between investing in a 1-bedroom or a 2-bedroom apartment hinges on various factors unique to each investor's circumstances and objectives. It's essential to assess the local market dynamics, rental demand, vacancy rates, and potential for capital appreciation before making a choice. Conducting thorough research and seeking advice from real estate professionals or financial advisors can provide valuable insights tailored to your investment goals and risk tolerance.

 

Incorporating the criteria for the best property investment in the UK into their assessments enables investors to refine their approach and pursue opportunities that align with their goals.

About Us

CapEx Properties is an independently owned property search/buying agency, assisting international clients with the search & acquisition of UK properties.

CapEx Investment Properties Limited trading as Capex Properties is a company registered in England and Wales. Registration number 13324508.
Registered address: 128 City Road, London, EC1V 2NX, UK.