Smaller home good/bad first step on the ladder?

Albermarle

Does the 70M2 house have a decent garden, maybe with a shed? Driveway/parking ?
If you have some external space then it will feel less small.

I actually do have that in mind my neighbours built a conservatory or a loft room and this house doesn't have either but looks like it could. Not sure if I'd get all investment back though. 

A conservatory is a relatively cheap way to add floor space, but can be a hot in Summer/cold in Winter.
Plus they are not universally popular with buyers
So overall not a great financial investment, but many people still have them.

Loft rooms are surprisingly expensive to construct if you want a proper room/bedroom, rather than just an enhanced storage space. However in the right house they can add value.
However in a smaller house, you will have two issues. The room will not be very big, so the cost of building it will be high compared to the floor space you gain. 
Also it is better that a house is balanced between upstairs and downstairs. Three bedrooms will maybe seem too much, when the downstairs living space is only small.

Herzlos

jake_jones99 said:

Herzlos said:

Small homes usually sell pretty well though any price growth will be lower. 

However, the running costs are lower too, so you should be able to build up more equity.

So it really comes down to how much you need to stretch your budget and how long before you think you'll need to move again. The safe choice is to buy smaller, pay less (up front and ongoing) and then move later as you need, but if you can afford the bigger place without any real risk, it's likely to pay off better over the longer term. 

I always recommend buying with expansion in mind if you can afford to. 

To be fair if I found a house that has all characteristics I want and also slightly larger I would get it. Apart from size, this one has everything. However I am aware than even 70 sqm net space is larger than anything I've ever lived in alone, and I'm not sure if it's worth missing this opportunity for something else that might never come. 

It sounds like it's a good fit for you then. 70m^2 isn't tiny either. 

jake_jones99 said:

You mean price growth is lower simply because they were cheaper in the first place, not because the relative growth is smaller (in %) right?

Pretty much. In theory, the % figure of growth is based on too many factors to worry about. 

It's almost certainly not worth extending a house just to improve the value because you'll never get it back unless you're adding bathrooms/bedrooms. It can be MSE if it saves you having to move again. 

For example; we spent about £15k on an extension when we had our 2nd kid. It added about £5k to the house's value, but it meant we could delay moving house for about 5 years when we could better afford it. 

ReadySteadyPop

jake_jones99 said:

I'm in the process of buying a 70 sqm semi home as a first time buyer. I'm aware this is small for a house, however it's cheaper than 100sqm homes or over (of course not proportionally, due to the small home premium). However, for a single occupant and maybe with a future partner (thinking a few years ahead) I think it will be enough. 

My question is, does it make sense to push myself to buy a larger home despite the unnecessary space and higher mortgage only for long term purposes? The council tax and bills will likely be larger too. Would a smaller home generally increase slower in terms of percentage (not absolute cost) than larger ones? What are the opinions of more versed homer owners?

Do you want a home or an investment? You might not get an increase, you might take a loss, can you deal with this easily enough?

ReadySteadyPop

Herzlos said:

Small homes usually sell pretty well though any price growth will be lower. 

However, the running costs are lower too, so you should be able to build up more equity.

So it really comes down to how much you need to stretch your budget and how long before you think you'll need to move again. The safe choice is to buy smaller, pay less (up front and ongoing) and then move later as you need, but if you can afford the bigger place without any real risk, it's likely to pay off better over the longer term. 

I always recommend buying with expansion in mind if you can afford to. 

Less and less people can afford to it seems.

https://www.telegraph.co.uk/money/property/buying-selling/why-britains-home-extension-dream-is-dead/

ReadySteadyPop

jake_jones99 said:

Herzlos said:

Small homes usually sell pretty well though any price growth will be lower. 

However, the running costs are lower too, so you should be able to build up more equity.

So it really comes down to how much you need to stretch your budget and how long before you think you'll need to move again. The safe choice is to buy smaller, pay less (up front and ongoing) and then move later as you need, but if you can afford the bigger place without any real risk, it's likely to pay off better over the longer term. 

I always recommend buying with expansion in mind if you can afford to. 

I actually do have that in mind my neighbours built a conservatory or a loft room and this house doesn't have either but looks like it could. Not sure if I'd get all investment back though. 

People are increasingly looking for value for location and size of property, add-ons that they could throw up themselves for a few thousand won`t add much value now.

https://www.theguardian.com/business/2025/jul/21/average-uk-house-asking-price-steepest-monthly-drop-for-20-years

ian1246

70 square metres for a 2 bed is pretty good sized tbh - I've seen a lot of 3 bed semi's at only 74/76 square metres and 2 beds as low as 50 square metres, so 70 square metres for a 2 bed is decent size.

I'd expect that 70 square metres translates to both bedrooms being well sized if the properties split 50/50 over ground floor / first floor - or alternatively a good sized downstairs/living space and more limited bedrooms? Either way, both would be good selling points & likely mean you can shift it in the future - provided the area's attractive and any other external factors are ok etc...

In your shoes, provided your jobs secure, I'd stretch as far as I can in the property I purchase, whilst keeping a small reserve of capital. 

QrizB

jake_jones99 said:

I'm in the process of buying a 70 sqm semi home as a first time buyer. I'm aware this is small for a house, 

My first house was a 70sq.m. 1970s 3-bed semi. Moved in with my girlfriend, who became my wife, and stayed there for nine years - by which time we had #1 child and we're in the second trimester of #2.

Happy times, plenty of space for the two/three of us. If I was mid-20s again I'd do it all over.

ReadySteadyPop

ian1246 said:

70 square metres for a 2 bed is pretty good sized tbh - I've seen a lot of 3 bed semi's at only 74/76 square metres and 2 beds as low as 50 square metres, so 70 square metres for a 2 bed is decent size.

I'd expect that 70 square metres translates to both bedrooms being well sized if the properties split 50/50 over ground floor / first floor - or alternatively a good sized downstairs/living space and more limited bedrooms? Either way, both would be good selling points & likely mean you can shift it in the future - provided the area's attractive and any other external factors are ok etc...

In your shoes, provided your jobs secure, I'd stretch as far as I can in the property I purchase, whilst keeping a small reserve of capital. 

Really not a good time to be doing that, for a multitude of reasons.

twopenny

I think it sounds like you are picking what is right for you and that's good.
You don't have to extend because it may not be what someone else wants. If the potential is there that is what people will look for so they can do their own thing.

What you can do is create a layout with the furnishings and colour that shows off space.

youth_leader

My friend lives in an 80 sq m house and I found it very difficult staying with her last Christmas. Only one cupboard for storage in the hall way.   She has paid to have the loft boarded and keeps many possessions up there - on Christmas Day her partner was up there several times getting chairs etc.