Buy a one bed or two bed apartment?

Hi there,

I am looking for advice please if possible.

I sold my house last year and for various issues am only in a position now to buy again and have been renting a one bedroom apartment for the past year. I am sale agreed on a 2 bedroom apartment at €400K (which I would be overpaying for due to the state of the housing market currently, asking price was €350K) on a nice street in my desired area (D8) which is also not far from where I am renting. My landlord is now selling the apartment (I have to be out by December) I am in and I could be in position to purchase it at a lower cost of around €270K. They are also currently working on the building where I am renting as there are redress issues. I work from home 3 days/week.
My financial situation is that I have a decent amount saved of €100K + mortgage approval and would prefer to buy a house instead of an apartment however its not possible currently again due to the price of houses being unaffordable to me. I can afford the mortgage payments on the 2 bed apartment at a bit of a stretch without having to get a housemate which is my preference however I wonder am I better off to buy the 1 bed apartment I am currently in and be financially better off and potentially sell it in another 3 or 4 years when the market calms a bit?
Any help would be greatly appreciated!
Thanks

The question is Where would you prefer to live?

Forget about finances for the moment. I would imagine that a 2 bed is better value than a one bed. I understand that they are easier to sell as well.

If you buy a one bed and don't like it you will end up trading up much earlier than you expected, and that is a very expensive and risky process.

Another advantage is having a €400k stake in the market is probably better than having a €270k stake in the market. If house prices fall, you will lose more money but your intended house will be cheaper. If house prices rise and you have "only" a €270k stake, then you might never be able to afford a house.

So, in your position, I would buy the two bed. I would get a tenant and use the tax-free rent to pay down the mortgage to a comfortable level and be in a position to trade up if that is what you eventually choose to do.

Personally I’d keep renting with a view to buying a house if that’s feasible. I think apartments are too high risk with all the fire/structural stuff.

I was in a similar situation to you both financially and circumstances and I chose the 1 bed option and no regrets so far. Far too late in life to be sharing with someone. My 1 bed has the same living room / kitchen space as a two bed so all I am missing out on is an additional box room and ensuite which would probably end up as cluttered storage space or walk in wardrobes.

Certainly a two-bed makes more sense financially if you rent out the spare room, but do you really want to do that?

Personally, I couldn't share a two-bed apartment with a tenant on a long-term basis.

I have lived in both and when in the two-bed only ever used the second bedroom for guests from time to time.

Now I live in a 1-bed and any guests stay on the sofa. It's not ideal, but it's fine for a couple of nights.

However I will say, I would like a second bedroom to able to work from and for storage.

However, I think it really comes down to Brendan's earlier question: taking the investment consideration out of it, which would you prefer and are you willing to pay for it?

Certainly a two-bed makes more sense financially if you rent out the spare room, but do you really want to do that?

Personally, I couldn't share a two-bed apartment with a tenant on a long-term basis.

I have lived in both and when in the two-bed only ever used the second bedroom for guests from time to time.

Now I live in a 1-bed and any guests stay on the sofa. It's not ideal, but it's fine for a couple of nights.

However I will say, I would like a second bedroom to able to work from and for storage.

However, I think it really comes down to Brendan's earlier question: taking the investment consideration out of it which would you prefer and are you willing to pay for it?