Recent news surprised our team at Hogan’s Leeds, where figures showed that 2 bedroom homes showed the highest % increase of any property.

However, with over 35 years of Leeds estate agency experience, we have found that in recent years (post-Covid) that a 3 bedroomed property has higher demand from buyers and tenants.

In our August blog post, we look at 8 reasons why you should look first at 3 bed properties.

Choosing to buy a 3-bedroom home instead of a 2-bedroom home can offer several advantages, particularly if you’re thinking about long-term value, rental potential, and flexibility. Here’s why a 3-bedroom home might be a better investment:

1. Broader Market Appeal
– Families: A 3-bedroom home appeals more to families, who often need extra space for children, a home office, or guests.
– Resale Value: When it comes time to sell, a 3-bedroom home typically attracts a larger pool of potential buyers compared to a 2-bedroom home.

2. Higher Rental Income Potential
– Renters: A 3-bedroom property can command higher rent, especially from families, roommates, or professionals who need more space.
–  Flexible Rental Options: You could rent it out to a family, or you could rent individual rooms to multiple tenants, increasing your rental income. Do note though that this applies to larger homes, perhaps, where there is space to add an en-suite to each bedroom, with a larger communal living space.

3. Future-Proofing
– Growing Families: If you plan to live in the home, a 3-bedroom home provides room for a growing family or changing needs over time.
– Adaptability: A 3-bedroom home is more adaptable to life changes, such as needing a home office, a guest room, or additional storage.

4. Better Resale Value
– Stronger capital growth: Generally, 3-bedroom homes appreciate better than 2-bedroom homes. They are more in demand, making them easier to sell at a good price. Although, recent news, does contradict this.
– Market Trends: The market tends to favour homes with more space, particularly as trends shift towards remote work and people needing more functional living areas.

5. Increased Flexibility
– Room for Improvement: A 3-bedroom home often has more square footage, offering more potential for renovations or additions that can further increase its value.
– Multi-Purpose Use: The extra bedroom can be used in multiple ways – as an office, gym, guest room, or playroom – making the property more versatile.

6. Lower Void Period Risk (for Rental Properties)
– Tenant Retention: Families and long-term renters, who typically prefer 3-bedroom homes, are likely to stay longer, reducing the risk of void periods.
– Stable Demand: 3-bedroom homes are generally in higher demand, meaning they are less likely to sit empty as rentals (and for sale) compared to 2-bedroom properties.

7. Lifestyle Flexibility
– Entertaining: If you enjoy hosting guests or have a larger family, the extra bedroom provides space for entertaining without feeling cramped. This is particularly true of bungalows and apartments, where a 3rd bedroom could become an additional social space.
– Storage and Space: A 3-bedroom home often has more storage options and living space, making day-to-day life more comfortable.

8. Cost Considerations
– Value for Money: While a 3-bedroom home may cost more upfront, the difference in price is often offset by the higher rental income and greater resale value it can provide.
– Investment Potential: The higher purchase price can be seen as an investment in future appreciation and return on investment (ROI).

In summary, a 3-bedroom home offers more flexibility, greater rental and resale potential, and can better accommodate changes in your life or the lives of potential tenants. These factors often make it a more attractive option compared to a 2-bedroom home.

No matter, whether you’re selling, letting, investing or buying, our professional team are here to help.

You can contact us via email at enquiries@hogans.co or call us or message the team via our active social media channels.