Hi All, I wanted to get peoples opinion on 3br vs 4br for an IP, especially in suburbs further out. I have found a 3br house in Bracken Ridge, but the majority of houses for sale in the suburb are 4br houses. Would it be wiser to invest in a 4br house as this indicates it is a suburb suited to larger families and hence I would have greater rental demand and future growth potential? Damon.
Any suburb will have a mix to cater to all family sizes and Bracken Ridge is no different. If I were in your shoes, I would choose a 3 br house with a bigger land size. A smaller house may potentially mean less maintenance costs too. However, if yield is more important to you than capital growth, then that's a different story
I would always prefer a 4 bedder as you could naturally get a higher rent. However, if I could buy a 3 bedder in a higher-demand suburb for the same price it may be a more viable option. So it really depends on what you are looking for and trying to achieve. From an asset selection point of view, you have hit the nail on the head. Identify what asset type in a location demands a premium for both rent and purchase price. If you purchase something that ticks both of these boxes you will likely see a better return.
We are all working towards a budget. However, 4 bedrooms is better than 3 bedrooms, and 3 bedrooms is better than 2 bedrooms, and so on. Land size the other key consideration from a capital growth perspective. Happy hunting.
Four bedrooms is obviously better, but the living areas have to be in proportion. Most people who want 4 bedrooms also want two bathrooms and two living areas. Cost is also a factor.
i wud always aim 4bed for a house. caters to much larger audience. even for those with 2 kids, 1 can.be home office which is increasingly becoming norm
I also prefer 4 bedders. I have found that newer subdivisions seem to have more 4 bedders than the older subdivisions. Newer homes also tend to have less living areas to similar older homes. In saying this, though, we have both 3 bedders and 4 bedders in our portfolio and get just as much demand for both.
