Help - 2 bed house or a 3 bed house?

[itsmehere1]

DH and I are planning to put an offer for a two bed semi-detached house which we have seen in our preferred area (zone 5) in London. We are currently renting FTBs and are planning a child come next year and need more space.The house itself has an area of 860 sqft, it's well-priced and close to a good primary school and secondary school. It has one bath upstairs, lovely kitchen , decent south east facing garden, and there is a scope for converting the loft to make it a three-bed. There are many houses next to it who have done the conversion so it shouldn't be a challenge to get the planning permission. It's well within our means, even factoring in the loft, but we noticed another property in the market just opposite to this house. They have already converted the loft and have 3 beds and 2 bathrooms and has an area of 1150 sqft. The price difference between the two houses is £70k. And the price of the bigger house is actually £50k higher than our original budget, although we can afford it if we stretch ourselves.

We both are very risk averse, although we both work in a stable profession. We have decided to have just 1 child and hence I feel the small house will work for us but we know things can always change. And in that case we can get the loft converted. But I want advice from you experienced mums/property owners, would we regret buying this small place? Will the loft conversion price be prohibitive in price in years to come and we end up moving houses? Any advice would be most welcome!

[Rainbowqueeen]

Have you actually viewed the 3 bed or just seen it online?

I would probably go and view it but it would have to be absolutely amazing for me to take it over the 2 bed. I’m also pretty conservative with risk. I think the lower mortgage gives you more options especially if you think that one of you might want to be a stay at home parent

A lower mortgage means you can pay off extra faster and mean less stress
Good luck with your decision

[sausagedogsmakechipolatas]

I’d view the three bed but probably stick with offering on the two bed. A £70k difference would mean the bigger house had to be amazing and with fixtures to my taste - elsewise I’d prefer to extend the two bed of and when needed, and have the benefit of choosing everything.

[SwedishEdith]

What's the cost of a loft conversion? Does the other house get much sun in the garden - NW aspect?

[QuickWash]

Obviously you need to look at both properly as seeing them in the flesh may make the decision for you. Building work is expensive so the 70k may be reasonable if it's a bigger house overall. Phil and kirstyalways say to go for the bigger if you can afford it and that's def worked out for us.

[keepingbees]

I think you should view both as others have said.
Things you need to consider are: Value of the extension (esp London tradesmen prices)
Affordability of a higher mortgage if you had to factor in being a sahm and/or future childcare/part time hours etc.
The possibility that you may end up with more than one child (twins/broodiness/wanting a sibling etc).

No one can predict the future but you need to future proof as much as you can afford to if you're planning on staying long term. I also recommend seeing the schools in person, don't just rely on ofsted reports.

[Kamma89]

We were faced with similar decision recently until budget increased out of nowhere & everything changed. We decided (with help from MN!) That smaller was better. Why pay a premium for space you don't need yet done to someone else's spec? Less debt for the win! Also, depending where you are in zone 5 you have to factor in price drops! Even if the area looks stable you just can't avoid the fact that London prices are heading down & that could accelerate. We bought expecting our house to go down but in it for long term so hopefully works out.

[DarthArts]

I'd go look at the 3 bed to get ideas about what could be done with the 2 bed.

For £70k you can do a LOT of work on a property (inc loft conversation). In all likelihood your paying a premium for someone else having done the work.

Factor in the plot size, aspect etc...if it's opposite does that mean a north facing garden?

Could you "make" the 2 bed into that property?

Then it's up to you - are you ok with the work/disruption etc? Could you do it pre-children (I've done major works with a small family so it's possible but frankly bloody hard).

[Angryosaurus]

Potentially you could pay double the stamp duty for the bigger house. Worth taking into account. However if buying the smaller house meant you would definitely move again, but the bigger house meant you didn’t need to, would be an overall stamp duty saving

[greystripedteepee]

Go with the one with the biggest garden. You can't change that

[itsmehere1]

Thanks a lot for all your replies. What a fantastic group :) We have not yet booked a viewing for the 3 bed house (north west garden) but have had a look at the floor plan to understand what we can do to make changes in the 2 bed later. As many of you suggested, and based on our gut feeling we have decided to put an offer on the 2 bed house and see how it goes. We don't want to over-leverage ourselves in probably what is the peak of London market and are sure we will be able to save the money required for any potential loft conversion later (hoping the tradesmen prices don't go up substantially by that time) and that too with our specifications. Thanks again for the helpful replies.

[MeMyShelfandIkea]

We have a north facing garden and it's now a dealbreaker for us for when we next move. Last year my DSCs spent a lot of time enjoying the garden at their mum's house (south facing) whereas they/we spent hardly any time in ours because being just that little bit colder made it too uncomfortable to really enjoy (not just the sunlight aspect - the garden just never warms up/retains the heat like a south facing one does). On nice days having a properly usable garden is like having an extra room.

Good luck with your move!

[DarthArts]

Good luck with your purchase.

Based on what you've said it's what I would have done (but then I'm on house number 7 and a serial "doer upper".

On the whole (location and or major structural issues aside) you're more likely to get a better return improving a property yourself rather than paying for someone else's efforts.

You obviously pay less stamp duty on the purchase and assuming you can give the house the longevity you need it for or substantially increase its value it's the better investment.

I admit I also don't like paying for other people's taste. I'd rather buy a house with a kitchen that needed a refurb I can do to my standards/taste than pay a premium for a new kitchen that I'm not keen on.

The south facing garden is worth a lot imho and you can do any improvements at your pace.