Should you choose a 2 bedroomed or 3 bedroomed property?
by on 1st October 2019
We posted a status on our active Facebook and Twitter channel recently asking this very question: should you buy or invest in a 2 bedroomed or 3 bedroomed home?
In high density areas of populations, like the suburbs we serve like Burmantofts, Harehills, Gipton and Beeston, it’s not always possible to add a single or double storey extension to a home as space is often at a premium.
If you want to live or invest in Leeds city centre, your choice generally is 1 or 2 bedrooms, with 3 bedrooms being in penthouse and Monopoly money.
All things being equally though, our advice is to look at 2 bedroomed properties and those with 3 bedrooms. If you see extension potential in a 2 bed home, you have to weigh up those costs and the ROI (return on investment). Your property you see has something called a “ceiling price”. It is a level for a street and postcode that has a limit.
If a street in East End Park has an average selling price for a 2 bedroomed property of, for example, £92,500, with a 3 bedroomed achieving £104,000 hypothetically, you would be hard pressed to extend that £92,500 home for just over 11k.
You need to do your homework.
There is no doubt that 3 bedroomed properties in Leeds and elsewhere are in greatest demand.
But the difference in price nationally is vast: on average you pay £69,000 more for a 3 bedroomed home, or a 29% premium.
There is higher demand though as there is greater flexibility in a 3 bedroomed property, as On the Market state:
“Upgrading to a decent sized three-bedroom family home has long been the aspiration of homeowners.
“They are a practical choice for growing families and young couples who want to guarantee themselves a future-proof purchase.
“But with popularity comes hefty premiums even while the housing market remains generally static.”
If you’re looking for an accurate valuation on your 2 or 3 bedroomed home in Leeds with expert market advice on upsizing, contact Hogan’s today.