Is it worth investing in studio flats?

This question may seem trivial. However, if you look at property prices, it quickly turns out that the amounts paid for buying or renting small flats differ significantly from those we encounter with larger properties.

The cost of investing in studio flats

It must be stated right at the outset that, calculated per square metre, buying a studio flat will in most cases prove more expensive than buying a larger flat. This is, of course, assuming a similar interior standard and the same neighbourhood. The differences vary, but as we wrote recently, in the case of Katowice we can speak of a ten per cent premium.

Before you conclude that it does not pay, however, check how much a studio flat bought for letting can earn. It turns out that in this case the owners of small flats very quickly recoup the money they spent on buying them.

How much does it cost to rent a studio flat?

The trend in question can be shown very well using the already mentioned example of Katowice. While the price per square metre of a studio flat here is ten per cent higher than for larger flats, in the case of renting the price per square metre exceeds the overall average by as much as twenty per cent. And that is impressive.

READ ALSO – BUYING A NEW FLAT BEFORE SELLING THE OLD ONE

Invest sensibly

The above data looks optimistic – and indeed, it is worth investing in studio flats, for example in Katowice. However, you need to do it sensibly, keeping a certain safety margin. Why? Studio flats, as long as they are not too small (that is, as long as they have an area of no less than twenty square metres), are fairly easy to rent out, and there will always be someone looking for a "starter" flat who will take them.

At the same time, however, sooner or later you have to accept that the people renting a studio flat will decide to move to a more comfortable flat (especially when, for example, they start a family). This is not a major problem, because you will certainly manage to find the next tenant, but it is worth bearing in mind for purely economic reasons.