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Studio or 1 , 2 bedroom apartments

Discussion in 'Egypt property' started by redangel7861, Feb 16, 2008.

  1. redangel7861

    redangel7861 New Member

    Two Studio Apartments or One two bedroom Apartment

    HI.

    I have reserved studio apartments on a development in Hurghada. I am contemplating whether to switch two studio apartments into one two bed two bathroom apartment.

    This is specifically an investment and not a second home. What are peoples opinions on this, will two studio's inflate more in price and be easier to sell than a two bed or will a 2 bed apartment appreciate in value when compared to 2 studio apartments.

    Opinions will be appreciated.

    Regards
    Red
     
  2. awahee123

    awahee123 Banned

    Just a quickie redangel for me it would have to be 2 studios next door to each other for sure.Hope this helps.
     
  3. redangel7861

    redangel7861 New Member

    Awahee.

    Thanks, your opinions are appreciated.

    Regards
    Red
     
  4. abomadi

    abomadi New Member

    hi, from my side view i think 2 studios are much better, as i know studios are more easy to be rented.
     
  5. J4hurghada

    J4hurghada Banned

    my views if i did not have my own apartment

    Studio's well first thing you can stay in the hotels all inclusive for little money, small rooms like studio's

    But what about the larger family's think the market would be better for a two bed apartment that can hold more people.
    You can get family rooms in hotel's but the price is extorsion look into it yourself I have tried.
     
  6. redangel7861

    redangel7861 New Member

    Again all opinons are welcome.

    My logic behind 2 studio apartments is that as an exit strategy they may be easier to rent and sell. I also believe that 2 studio flats may appreciate faster than a 2 bed apartment. If a studio doubles from say £25,000 to £50,000 you will still have buyers. If a 2 bed doubles from £50,000 to £100,000 how many people will be willing to pay that price.

    Again I'm looking at this strictly from an investment point of view and not lifestyle view ie. second home.

    Again all opinions are valued and welcome.

    Regards
    Red
     
  7. NeilHollingsworth

    NeilHollingsworth New Member

    Absolutely correct two lots of capital gains plus what if you needed to release some money you could always sell one and continue with the other. I have had clients buy two apartments next to each other and have asked the builders to put in connecting doors like in hotel rooms. Not yet in Egypt though, that is worth thinking about for family rentals. Although initially remember you will have two furniture packs, two lots of buying costs, two annual maint etc... I do think it would be better in the long term though. Hope that helps.
     
  8. lyndsay552

    lyndsay552 New Member

    Why a 2 bed? Surely a decent size 1 bed would hold the same number of people as 2 studios but you wouldn't have the same outlay. It may mean that you could afford 3 one beds rather than 4 studios, or 2 two beds.

    Lyndsay
     
  9. redangel7861

    redangel7861 New Member

    With regards to costs, maintenance costs are charged per sqm so two studios at 35sqm would probably cost the same as a two bed apartment with 70sqm. With regards to furniture packs I don't think a furniture pack for two studio's will be that much more expensive than a furniture pack for a two bed. Again I must point out that the two studio's will cost the same as the two bed apartment and will have the same sqm.


    A decent size one bed would not hold the same number as people as 2 studios. A one bed apartment can only be rented to a couple where as two studio's can be rented for two couples.
     
  10. lyndsay552

    lyndsay552 New Member

    A decent size one bed can hold four people. We viewed an 80m2 one bed in regency towers, which is kitted out with an excellent pull out sofa bed, giving the extra two beds. It is possible, if you look in to it properly.
     
  11. Peter Mitry

    Peter Mitry <B>Egypt Forum Founder Member</B>

    I have several investor clients who never buy anything else but studios; the costs are virtually the same per m2 and the unit value is lower to facilitate a quick sale. The %return per m2 is the same but much easier to move on.
     
  12. NeilHollingsworth

    NeilHollingsworth New Member

    But you will have two legal bills, two registration bills, two annual tax bills. But at the end of the day you know what you want to do.
     
  13. redangel7861

    redangel7861 New Member

    Lyndsay,

    I did think of that, but I feel that if people want accomadation for four people then they will simply look for a two bed and won't cramp into a one bed.

    That's my opinion only and your point is a valid one as well. But if your buying a five star luxury beach front apartment I suppose you don't want four people crammed into a one bed apartment.

    Again all views appreciated.
     
  14. lyndsay552

    lyndsay552 New Member

    Instead of thinking about 4 adults have you thought about 2 adults and 2 children or 2 adults and a teenage child?

    A one bed will give the adults the privacy, without going to the expensive of a 2 bed. Just remeber it's only for a week, 2 at the most.

    Lyndsay
     
  15. Go West

    Go West New Member

    I agree with redangel If you are looking at an investment point of view you will be better of with 2 studio apartments as the rental return % is higher and much easy to rent out and if you want to sell the apartments you will find it allot easier to sell a studio other than a 2 bedroom because you are at the lower end of the market.
    Think about it your market is allot bigger when you sell a cheaper product and in this case You will have allot more buyers for a studio (cheaper) other than a 2 bedroom(more expansive).

    Few people on this thread reckon that you will have more drama's with two lots of bills, furniture etc.
    Those are not necessary more expansive or more of a problem as you have to look at your property investments as an investor.
    When you look at an investment you look at R.O.I (return on investment) and when you calculate your R.O.I you take into the calculation all your outgoings an income and when you do this you will come to the conclusion that your R.O.I is much higher on Studio apartments and it is easier to sell them on.
    If you want to learn more on How to make yourself a good profit and choose the perfect most lucrative property investment you are welcome to contact me or give me your email.
    Erez
    Go west property consultants and Buyers agents
     
  16. lyndsay552

    lyndsay552 New Member

    But is this not were a 1 bed gives the best of both worlds?? Smaller investment than a 2 bed but less bills and expenditure than 2 studios; plus a wider market for the rental pool?
     
  17. Go West

    Go West New Member

    you are talking about two different scenario's here.
    1. the question of what’s better one 2 bedroom apartment or two studio apartments and the answer is two studio's as the return is Higher and it is easier to re-sell studio because their lower price compare to two bedroom price.

    2. your question about whets better 1 bedroom or studio?
    my answer to this is that it all depends on the R.O.I
    1 bedroom and studio apartments are around the same price that’s true and you will be able to resell quickly if you need, because once again you are at the lowest end of the market.
    Although not every 1 bedroom apartment is good because some of those 1 bedroom apartments are quiet big in size and there for your service charges (outgoings) are higher and the capital value is higher (good for your pocket) when you try to re-sell limiting your prospective buyers.
    Please remember that this is a general speaking guide and each property investment should be inspected as what it has got to offer location etc..
    Which I'm happy to assist with
    Yours
    Erez
     
  18. crombiestone

    crombiestone New Member

    In terms of rental .I would say its easier to rent a 1 bed than a studio .A studio is like a hotel room so customers are as likely to take a hotel room and probably an AI package ?

    A 1 bed apt is more akin to a hotel suite which would be much more expensive so is more attractive to the rental market .

    I would also say that a 1 bed apt is easier to rent than a 2 bed or larger as more people travel as couples .
     
  19. Mark .Y.

    Mark .Y. New Member

    From a personal point of view I agree.
    I would always rent a 1 bed apartment rather than a studio, my wife likes to lay in whilst on holiday and I still tend to get up relatively early so can always leave her in bed whilst I enjoy a couple of coffees on the balcony without disturbing her as I crash around the kitchen.
    We are taking our fourteen year old with us on holiday in the Summer to the Algarve with our friends who also have a fourteen year old and we are booking 2 x 2 bedroom apartments so the kids also have their own room.
    Makes it slightly more expensive but far more comfortable.
    Not sure whether this actually helps you Red but just thought I'd throw my personal view into the hat.

    Mark .Y.
     
  20. redangel7861

    redangel7861 New Member

    Again, I really do appreciate the input I am getting here. Rivermead your idea about a connecting door to the rooms is a great one and will cater for all markets, i.e. I can market it as a two 1 bed studio's or one 2 bed apartment when it comes to rental or selling the property depending on how the market is at the time, so that offers me great flexibility. Again thanks that's a great idea one that I will discuss with the developer.

    Again I must stress the question is whether a 2 bed or 2 studio's not studio's vs 1 bed. In my experience studio's have been easier to rent or sell than 1 bed's, again ,that is my opinion only.
     
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