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The Power of the Bedroom
If you know without doubt the value added to a property in your area by adding a bedroom, then you are well positioned to find the style of property that will take an extra bedroom and bring you significant profit.
In Peterborough, where I live, the bedroom price is about £10k. That means that a 2 bed flat/house will cost about £75k, a 3 bed house will cost about £85k and a 4 bed house will be about £95k. That means the bedroom price is £10k. If I need to spend more than this to add a bedroom then it isn’t worth doing if my intention is to sell the property.
Down the road in Cambridge however the bedroom price is about £40k to £50k, so the same renovation in which I add a bedroom would net me a significant profit. That is why at the moment, when considering a flip (buy, renovate and sell) you need to find more expensive areas.
You can also extend a property to add rooms, and in the more expensive areas this will significantly increase the value of your property.
Get to know how much an added bedroom increases the price of a property in your area – there will be cheaper areas and more expensive areas – the flips always work best where the bedroom price is higher. Zoopla will show you the breakdown of average prices for each number of bedrooms.