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While largely dependent on the region, a distinct trend has emerged that the ever popular 3 bedroom home will cost an average of 29% more than a 2 bedroom home. That means that typically, an additional bedroom will cost in the region of an extra £80,000. That all important square footage and extra storage doesn’t come cheap. In some areas, the cost of an extra room will add on over £100,000.
Whether you’re renting or buying, there is no doubt about it that a 3 bedroom property will remain close to the top of the wish list for many. The popularity of this property type is seemingly infinite, the versatility appealing to growing families and young professionals alike. Growing or downsizing, young or old, this property sweet spot is always likely to tempt the masses.
The average rent of a one bedroom property will be around £950 a month, while a 2 bed will cost around £1,285 and to rent a 3 bed house, you are looking at around £1,660 per month.
Getting a roommate or two to put in those extra rooms, and sharing the rental cost can actually work out cheaper than renting a 1 bedroom flat for yourself. The average room rental price is around £595, which would contribute a large amount to the overall rent of a two or three bed property.
Saving up for a house deposit can feel like it takes an eternity, but rest assured you will get there eventually. Being strict with outgoings, taking a look at any direct debits that can be cancelled, home cooking and food prepping are all ways to help rack up those savings. The average salary is around £27,600. Buying a house with two incomes, be it a friend or a partner, assuming you are on the average wage will speed up the overall process.
The average price of a 2 bedroom home is around £284,000. Most mortgages require a 10% deposit, meaning you will need to have scrimped and saved £28,400 as up-front payment for your deposit. Although there is the possibility of a 5% mortgage that would require a deposit of £14,200. A £284,000 house on a 4.3% mortgage will have a monthly repayment of around £1,390. If you buy a house with a partner, this will mean you each pay £695 a month towards your mortgage each month.
Two salaries according to the average would mean just shy of £3680 a month is coming in after tax. Saving £1,000 a month will means that you will have enough to save money for a house deposit in roughly 2.5 years. If you’re looking to fly the nest sooner rather than later then joint buying could definitely be the best option for you. It means that your monthly income will be essentially doubled, therefore giving you more disposable income to furnish and decorate your new home to your hearts content.
To buy a 3 bed will cost you on average around £366,000 and as mentioned, around £1,660 a month to rent. A 3 bedroom home is more often than not, a second stepper property, or your forever home as opposed to a first home. As your disposable income increases, due to promotions at work, better savings strategies etc, this property market favourite becomes increasingly accessible.
Moving up the property ladder is no longer a phrase exclusive to buyers. If you have decided renting is the best housing option for you, you are still able to move up the ladder and rent properties that reflect your career trajectory. As much as you might love it, it is unlikely that your first home will be your forever home, whether rented or bought, you will inevitably want to move up the ladder eventually. As your family expands it’s pretty likely you will need more room! Whether an extra room for a little one, a garden for a fluffy friend to keep you company or more living space, moving up the property ladder and gaining more space in the process is desirable for many.
The rules of climbing the property ladder apply to everyone, whether you pay a bank or a landlord, a mortgage or rent. It ultimately comes down to money management. Creative, strategic and disciplined saving methods will see you go far, as will well-guided financial advice tailored to your needs and wants to help you make the best decision for you. The dream house can eventually be yours, bought or rented.
If you would like to find out more about property in your area then pop into your nearest Andrews branch. Our mortgage advisors are on hand to answer any questions you may have about moving up the notoriously slippery property ladder and everything property in your area.