Two bed or 3 bed

[opticalearth]

I'm 25 y/o looking at buying a house in the next 1-2 years, I live on the border of kildare/Dublin. For me to apply for a mortgage right now I could get a 2 bedroom or save up longer and get a 3 bedroom. I was wondering is it better to wait till I have enough for a 3 bed. I think a 2 bed would suit my needs for the foreseeable future however a 3 bed I think is better in the long term and I could rent out an extra room.

The way I currently see it, the sooner ya get on the property ladder the better and while I'm saving for a 3 bedroom the prices could go up again and again until its out of my reach however a 2 bed may be less sellable in the future as 3 beds are more in demand. Any advice or people with similar experience?

 

[kuhlforgod87]

@opticalearth I purchased my first home and was originally looking for a 2BR as well. A 3BR is no doubt much more practical and attractive to re-sell.

However, it’s really just a question of opportunity cost. Are you currently renting? How long would it take you to save up to buy a 3BR? Building equity in a home as soon as possible is the conventional wisdom for a reason!

 

[opticalearth]

@kuhlforgod87 I am currently renting. I think at least another 2-3 years.

 

[intofarlands]

@opticalearth Then that's 3-4 years at least of renting until you're in a house taking into consideration the house hunting.

I'd get the 2 bed, if you need more space later you extend, build a garden room, trade up etc.

Also as there is so much demand that isn't drying up you could find yourself saving up just to keep up with the creeping house prices.

 

[anamikads]

@opticalearth Rent a Room relief will effectively pay your mortgage. So I'd be going for the 3BR if possible.

 

[s4christ]

@anamikads 1bedroom for 1166 a month tax free through rent a room scheme. Rent the other occasionally on Airbnb for extra cash and family friends

 

[opticalearth]

@anamikads Thanks. 2BR are about 300k, 3BR are 350-400k.

 

[kebo12345]

@opticalearth These prices are if you stay where you are, but if you move away from Dublin, you could get a 3 bed now. Not sure of your circumstances with work etc, but a little commute couldn't hurt.
3 beds in Wexford are going for 300.

 

[opticalearth]

@kebo12345 Good point, unfortunately I've been holding off on buying a car due to the cost since I've been saving for a house so my commute options are limited.

 

[horizons]

@opticalearth How much are you saving per month and what salary you on?

 

[opticalearth]

@horizons 55k, saving 750 a month.

 

[jimblogger]

@opticalearth 2BR and convert the attic in to an ensuite