Two Bedrooms or Three? Here's How to Decide What You'll Actually Use

As a first time home buyer in London, Ontario, one of the biggest decisions you'll face isn't just where to buy—it's how much space you actually need. The jump from a two-bedroom to a three-bedroom home can mean a difference of $50,000 to $100,000 or more in our local market. That's a significant investment, so it's worth getting this decision right.

Let's break down how to determine what you'll truly use—and what might just become an expensive storage room.

Understanding the London Market Reality

In London's current real estate landscape, a well-maintained two-bedroom home in neighbourhoods like Oakridge or Lambeth might range from $450,000 to $550,000, while a comparable three-bedroom property could push $550,000 to $700,000 or higher, depending on location and finishes.

In more sought-after areas like Byron, Old North, or Wortley Village, you're looking at even steeper price points. A charming three-bedroom near the walkable village shops along Commissioners Road in Byron—think grabbing a slice from Byron Pizza or picking up groceries at Metro—will command a premium over a similar-sized home in developing areas like Talbot Village.

The question becomes: is that extra bedroom worth the additional monthly mortgage payment, property taxes, and maintenance costs?

Honest Questions Every First Time Home Buyer Should Ask

How Do You Actually Live Day-to-Day?

Before you start browsing listings, take an honest inventory of your current lifestyle. If you're working from home regularly (as many Londoners now do), a dedicated office space isn't a luxury—it's a necessity. That second bedroom in a two-bedroom home might already be spoken for.

On the other hand, if you're commuting to Western University, Fanshawe College, or one of London's many employers and rarely work from home, that "home office" might just become a dumping ground for laundry and forgotten exercise equipment.

What's Your Five-Year Plan?

Your first house doesn't need to be your forever home, but buying with some foresight is smart. Consider:

- Starting or growing a family? A three-bedroom provides room to grow without the stress of moving with a newborn. - Planning to have aging parents visit frequently? A guest room becomes essential. - Building a side business? That third room could become your workshop, studio, or consultation space.

If none of these apply, a well-designed two-bedroom might serve you perfectly for years—and keep more money in your pocket for enjoying London's trails along the Thames River or weekend adventures at Boler Mountain.

Can Creative Solutions Bridge the Gap?

Sometimes the answer isn't strictly two or three bedrooms. Consider these alternatives:

- A two-bedroom with a finished basement: Many homes in Westmount and Masonville offer this configuration, giving you flexible space without the full price tag of an above-grade bedroom. - A two-bedroom plus den: Common in newer builds in areas like West 5, these layouts provide a functional workspace without heating and cooling a full extra room. - A larger two-bedroom with room to convert: Some older homes in neighbourhoods like Wortley Village have generous floor plans where future renovation could add a third bedroom if needed.

The Real Cost of That Extra Room

Let's talk numbers. On a $600,000 three-bedroom versus a $525,000 two-bedroom (a realistic comparison in many London neighbourhoods), you're looking at:

- Approximately $75,000 more on your mortgage principal - Roughly $350-400 more per month in mortgage payments - Higher property taxes and utility costs - More space to furnish, clean, and maintain

For some first time home buyers, that money might be better invested in a home with updated systems, a better location near amenities, or simply building your savings for future goals.

When Three Bedrooms Makes Sense

Despite the cost considerations, there are clear scenarios where the third bedroom is worth every penny:

- You have a child or are actively planning to start a family soon - Both partners work from home and need separate office spaces - You have hobbies requiring dedicated space (music, art, crafting) - You're purchasing near Western University or Fanshawe and plan to rent a room to offset mortgage costs - Resale value is a priority—three-bedroom homes consistently appeal to a broader buyer pool

Making Your Decision with Confidence

The beauty of buying your first house in London is the variety available across our neighbourhoods. Whether you're drawn to the village feel of Byron with its walkable shops and restaurants like Kashmere Grill and MeeSai's Thai Kitchen, the established charm of Old North, or the newer developments in Lambeth, there are options at various sizes and price points.

The key is being honest about your actual needs versus aspirational wants. A well-chosen two-bedroom that fits your lifestyle and budget will bring more joy than an oversized three-bedroom that stretches your finances thin.

Let's Find Your Perfect Fit

Still unsure what configuration works best for your situation? Sometimes it takes walking through a few properties to truly understand what feels right. I'd love to help you explore your options and find a home that matches both your current lifestyle and future plans.

Reach out to me, Nickey Calford, at Calford & Co. Real Estate Team. Together, we'll find the home you'll actually use—and love—for years to come.

Two Bedrooms or Three? A First Time Home Buyer's Guide to Choosing the Right Size in London, Ontario