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Adding an Extra Bedroom?

Discussion in 'Renovation & Home Improvement' started by House, 23rd Oct, 2015.

  1. House

    House Well-Known Member Premium Member

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    For my second IP I want to create a large amount of equity and have found a suburb where the median price difference for a 3 and 4br house is about $180k so naturally thought adding a bedroom (and maybe an ensuite) would be a good way to start. Cost seems to be pretty low (between $10-$25k?) and council approval if necessary.

    There's a few threads on SS but not much info there or on the net on the best way to go about it so would it be as "easy" as getting necessary approval, paying to add the extra bedroom, rent it and then get a reval 6 months later? Is there anyone on here who does this frequently?

    Noticed that a lot of For Sale ads don't proffer floor plans so makes it a little harder to judge online but they're all on large blocks so space wouldn't be an issue.
     
  2. Perthguy

    Perthguy Well-Known Member

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    Provided that 4br houses are in demand in the area (check with real estate agents and rental property managers), adding an additional bedroom definitely increases the value of a property. When I am looking for IPs, for a 3x2 I always check if I can add another bedroom. For a 4x1, I check if I can add another bathroom.
     
  3. mja

    mja Well-Known Member

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    Beware to not sacrifice open space in the house for an extra bedroom. For example, in one of my 3 bedroom houses, I could easily carve up a chunk of the lounge room and convert it to a 4 bedder, but valuers would crucify me as there's then technically very little 'living area'. You'll need to involve council if you want to change the roof line (eg adding an extension).

    Also, a 4 bedroom house with 1 bathroom sucks from a tenant point of view.
     
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  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Agreed. If you are going to 4 brm, make sure you have 2 bathrooms.
     
  5. Perthguy

    Perthguy Well-Known Member

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    Definitely!
     
  6. House

    House Well-Known Member Premium Member

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    Thanks for the responses. Haha yes there would be an extra toilet, can't imagine living in a 4x1. @mja it would be an external addition (or garage conversion if viable).

    According to RE.com.au, demand for 3br is low but high for 4br (almost twice as many visits) so looks good using that as a basic indicator to warrant further investigation. Could even be CF +ive too which would be sweet to boost the serviceability a bit more.

    When I find the right property, would it be best to push for something like a 4 month settlement (Council approvals are estimated to be between 68-100 days) and early access from Day 1 to start a cosmetic reno while waiting the approval?

    Plan to chat with the town planner beforehand so I know what they prefer and also they know who I am and my intentions.
     
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  7. House

    House Well-Known Member Premium Member

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    Any other opinions on the above? :)
     
  8. bob shovel

    bob shovel Well-Known Member

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    4x1 is ok. Some people might have 2 little kids and want a study. No biggie. If it works do it, there's s lot of people out there wanting different things