Join Australia's most dynamic and respected property investment community

4 brms or 3bdrms which is better?

Discussion in 'The Buying & Selling Process' started by Xie, 16th Nov, 2015.

  1. Xie

    Xie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    71
    Location:
    Victoria
    Just after some thoughts about whether if it is affordable would you purchase a 3bdrm or 4bdrm hse. What are some things I should consider? Both homes are close so similar location to shops, transport etc.. and have similar land sizes (duel occupancy potential) they are also both similar in quality. Families tend to be smaller now so is a 3 bdrm more likely to attract renters and are there resale factors I should consider?

    Obviously, with out specifics this is just a general question. When I was doing area DD I checked and three bdrms are prolific whereas 4's are rarer. The area is gentrifying slowly any advice?
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    4 bedrooms are higher demand for both rentals and sales - due to them not being as prolific.
     
  3. Bryan Loughnan

    Bryan Loughnan Well-Known Member

    Joined:
    20th Jul, 2015
    Posts:
    130
    Location:
    Brisbane
    Whether a property is 3 bedroom or 4 bedroom won't mean it one goes up in value any quicker than the other. It will affect the purchase price, which in turn will affect your capital and cashflow requirements. From a rental perspective, it will be more about the general demographic of the area, overall demand and also future supply outlook.

    It's the same as saying should I buy a property with 1 bathroom or 2? Whether it has 1 or 2 bathrooms will impact purchase price, but not long term capital growth prospects.
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,235
    Location:
    NSW
    If you go for the 4brm make sure you have 2 x bathrooms or at least 2 x WCs.
     
    EN710 likes this.
  5. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,949
    Location:
    Brisbane
    I would ask a local agent. It very much depends on the area, who will be renting. You don't always get more rent for a four bedroom in an area without the call for four bedrooms, and as others have said, four bedrooms usually means people want (and expect) at least two living areas and two bathrooms.

    As an example, we turned an enclosed front verandah into a fourth bedroom in a house. The third bedroom was seriously small, too small to be called a bedroom. So in effect, we were creating a good sized third bedroom. However, we did advertise it as four bedrooms. It just wasted their time and our time. People coming see the four bedroom house made comments about only having one bathroom, not having a second living area.

    When we next advertise it, we will say three bedroom + study.

    There are also people we've found who don't want to pay for four bedrooms when they only use two. They are happy to have one extra, but two extra is wasted money (in their eyes) if they can pay less and get only what they need.
     
    See Change and Propertunity like this.
  6. citystar

    citystar Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    167
    Location:
    QLD
    I'll have to vote for four bedrooms for the reasons mentioned above.
     
  7. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    It depends of course, if you were able to buy identical houses in identical suburbs but one had an additional bedroom for the same price, guess which one I'd pick?
    Also if a house had the option of creating another bedroom fairly easily it would be a plus.
     
  8. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,566
    Location:
    Melbourne, Australia
    for me a 4 bed really need 2 bath as a min and pref 2 living.
    For me a 3 bed I still prefer 2 bath but I guess you can be more flexible, I recently saw a 5 bedroom house with only 1 bath and that is a huge turn off. Why not have it as a 4 bed+2bath rather than 5 bed 1 bath?
     
  9. See Change

    See Change Timing Lord Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,145
    Location:
    Sydney
    We went for a four bedder when we got the opportunity . Higher rent for not much more .

    Ironically it was the one that took the longest to rent ..:( , thou it did rent .

    Cliff
     
  10. Xie

    Xie Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    71
    Location:
    Victoria
    Thanks for the comments everyone really helpful. Some good advice.