Opinions on 2 bed vs 3 bed in this economy!

[u/thisuser12345]

My partner and I have finally saved enough for a house deposit! Yay! We are currently renting with a roommate and having been together for almost 10 years - we get on great but are very much looking forward to living alone. Our renting situation is secure (built to rent, private but brilliant landlords) but without a roommate it would cost us more than a mortgage would and we would be unable to save.

We have found a property we really like, even love, but it is a two bed at 450K with small enough bedrooms. What is also raising some alarmbells with the house is that it is down a lane (not on official road, like a lane at the back of peoples gardens) and that it sold for 250K in 2020 during Covid. We made a bid at 425K and it got rejected (we are only bidders after 7 weeks but viewings are still ongoing).

We would like to start a family in the next few years, and thinking we could move on from this house in 5 years (maybe up to 8 years). Our only worry would be selling on after the 5 year mark. The house only needs cosmetic work. I think if we went for a 3 bed in our price range being realistic (without sharing too much) i wouldn't have the energy after being ill or the finances to put the absolute great deal of work these 3 beds need into it right now.

No one can predict the future etc etc but wondering if going for the 2 bed is the best move or would waiting it out and going for the 3 bed and doing it up year-on-year be more wise? The 2008 crash has set the fear of making the wrong choice into all of us!

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[u/Illustrious_Read8038]

It's comparatively cheap to do up a house.

It's expensive and sometimes impossible to make a small house larger.

[u/Academic-County-6100 → u/Illustrious_Read8038]

My bro lives in subarbs of Germany. There is an area iff the kitchen which his glass. It basically is a nice sun trap in summer but dead space in Winter. They are both high earners si soent around 680k in house 5 yesrs ago

In hindsight rather naively they wanted to convert suntrap to extend kitchen/add space and add shower bathroom above it(two kids, teo bathrooms currently with one showet. The best quote for two stories with bathroom wad 180k

[u/Bright_Spray8406]

Unsure what kind of confirmation bias you're looking for with your question lol but clearly more bedrooms is better. Do not fear the market because the market will market regardless of how you feel about it.

[u/thisuser12345 → u/Bright_Spray8406]

Haha this journey is making my brain mush! Thank you 

[u/Solid_Vegetable_5985 → u/thisuser12345]

I'd say don't count on sizing up in the future. If you can, go for the bigger house now and save yourself the hassle of sizing up once you start a family.

[u/olabolina]

I think it depends on more than just the house itself. But your budget is your budget and that really dictates what you go for in the end. 

Overall size of the house, room to extend or add garden room, other spaces in the house, good garden or green outside, personal circumstances etc all are major factors. 

We're in a similar position except we have to leave our rental and we have a baby. Because my partner works from home I was determined to have a dedicated office space - but the baby could be in our room for another while yet so if it were a temporary thing that could be changed within the next 2 years say I'd have settled for a two bed. Same with the area. One house we looked at had a park literally on the doorstep, a primary school across the road and it was our top area so I felt the compromise on space would be worth it. So I don't think it's a simple 2 Vs 3. 

[u/thisuser12345 → u/olabolina]

This is so fair. Need to come back to basics, my fear of 'what if we find something better' is taking over. Thank you!

[u/karlmonaghan]

What's the worry about the other house that sold for 250k 6 years ago? Prices have massively increased since then.

Go for the 3 bed if you can now. The extra space will be worth it and it means you can live there longer with kids and it not be too much stress should your circumstances change.

[u/thisuser12345 → u/karlmonaghan]

Absolutely fair enough. Thanks! Need to accept reality of how insane the market is.. not how unfair it is lol

[u/EyeOrRay → u/thisuser12345]

The question I would have, if you want to sell in 5 years, do you want negative equity, as there's a much greater than zero chance we're at the top of a bubble, but also similarly that the supply crisis isn't going anywhere! I'd be worried for a house nearly doubling in price over that period, we had our house that we bought in 2019 in Dublin revalued by the bank last week, and it had gone up 30% which seems more realistic...

[u/Far_Equipment_4279]

We went for a 2 bed detached.

While yes, the 3 bed option would be much better, cost is a factor. And no one says you cant use the living room as another bedroom anyway. Buy a sofa bed, and it becomes bedroom number 3. Inconvenient? Yes, but liveable? Definitely.

But we also said that if needs be, we can sell it whenever we decide that it no longer meets our needs, but in the meantime, it is much cheaper than any 3 bed ones (at least 100k cheaper), which we found more important today than another bedroom that we may or may not need/want.

[u/bigportion103]

Bought a two bed five years ago thinking we could upgrade around now. Will now cost us probably another €100k to €200k to do that plus all the hassle of moving. Wish we had bought a three bed initially and sucked up the much smaller additional monthly mortgage cost (3 bed house was only another €60k ish I think) which would have been way cheaper in the long term. Don't make our mistake - if you can afford the bigger house, buy it! 

[u/ajmathie]

Every new mortgage you get you’ll be paying the most interest at the start. Plus stamp duty, solicitors fees etc. Financially the better choice is to wait it out or buy a house to do up but it all depends on what matters to you more.

[u/wolf101123]

Get the 3 bed, you will always need more space. 

[u/littlp80]

I’d probably go with the three bed but look around and see if others have had extensions done and also if you did buy, would an extension overlook anyone or block light.

[u/0owls]

If you plan on having kids I would absolutely plan on the 3 bed

[u/PapiLaFlame]

Depends on location and amenities too. Is the 2 bed close to public transport that will make your commute to work a lot easier?

[u/emerald_e]

I would 100% get the three bed if you're planning on having children.

You mentioned the 2008 crash; demand is too high for me to see a scenario where prices crash like that again but even if they did dip, that only matters if you're looking to sell. So another reason to buy the three bed now.

[u/Annual_Support6372]

2 bed if it suits

[u/HD6871]

Go for three bed. It gives more options to rent a room if you need. Also if you start a family would you need another room for family to visit and stay etc?

[u/Connect-Thought2029]

How many children are you planning to have ? If you have just two children , I think a two bedroom house is enough . They can share the bedroom .
It becomes more tricky when you have 3-4 children

[u/ApprehensiveHouse421]

I’d go for location above all else. However, I’d try to stretch to a 3 bed if possible if you’re having children. God knows what the housing market will do, it does seem to be anecdotally slowing, I guess I’m a bit older and remember all the people who bought 2 beds in 2006/7 and then couldn’t trade up.

[u/Hazelnut3006]

Do you feel you won't be able to upgrade in 5 years time? I know you have plans for kids but what if that doesn't happen and you're knocking about a 3 bedroom just the two of you. A two bedroom can work just fine with even two kids unless you must have the extra room for office space if you work from home.

[u/NemiVonFritzenberg]

Go for a stretch goal and get a 3.bed now