Converting a 3bdr to 2bdr

Discussion in 'Renovation & Home Improvement' started by Brad_T, 8th Dec, 2019.

Join Australia's most dynamic and respected property investment community
  1. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    Hi all,

    What do i need to do to legally convert a 3bdr house into a 2bdr house within Adelaide? The house would need to be formally registered as a 2bdr house and in the future, potentially convert it back to a 3bdr house. It would be for investment purposes.

    I know this is a strange request however i do have my reasons (prefer not to get into it at this stage).

    Regards,

    Brad
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,404
    Location:
    Australia
    registered as a 2 bedroom house with what organisation?
     
  3. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    So instead of being recognised (officially? Im not sure what the correct terminology is) as a 3bdr home, i am wondering how to get it recongised as a 2bdr home without major renovations (like removing a wall), say a 2bdr home with study or play room. Not sure if its possible or not.
     
    Shogun likes this.
  4. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,404
    Location:
    Australia
    Recognised by who? Bank? Valuer? Council? Agent?
     
  5. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    Council, agent, bank... all of the above. I did just read something that says if it doesn't have a window then it may not be considered a bedroom, more a study. I guess that is one example, just wondering if there were others.
     
  6. # 1

    # 1 Well-Known Member

    Joined:
    6th May, 2019
    Posts:
    267
    Location:
    International
    I wouldn't worry about it
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,299
    Location:
    Sydney or NSW or Australia
    Can't understand why you would want to knock 30% off the value of the house with an unknown possibility of getting it reapproved as a 3 bedder in the future.
     
    wylie likes this.
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,364
    Location:
    Perth
    Ceilings under 2400mm or no window or sometimes not having a door but the first two really.
     
    Last edited: 9th Dec, 2019
  9. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    If the house has three tiny rooms that can’t fit wardrobes - might make sense to combine a couple of rooms. At least it did in my place.
     
  10. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    It's
    Because if it's a 3bdr i have to move into it. If it's a 2bdr property, i don't have to move into it and can use it as an investment. I don't want to forgo the subsidised rent for the 4bdr i currently occupy.
     
  11. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    Thanks for the reply and actually answering the question. I did find the following information from the Building Code Of Australia (Vol 2) - Class 1 and 10 Building Housing Provisions:

    3.8.2.2 Ceiling heights Ceiling heights (see Figure 3.8.2.1) must be not less than-
    (a) in a habitable room excluding a kitchen - 2.4 m; and ...
    (e) in an attic room, room with a sloping ceiling or projection below ceiling line or a non-habitable room or similar space - a height that does not unduly interfere with the proper functioning of the room or space.

    upload_2019-12-9_9-49-13.png

    3.8.4.2 Natural lighting Natural lighting must be provided in a Class 1 building to all habitable rooms, in accordance with the following:
    (a) Natural lighting must be provided by windows that-
    (i) have an aggregate light transmitting area measured exclusive of framing members, glazing bars or other obstructions of not less than 10 % of the floor area of the room; and
    (ii) are open to the sky or face a court or other space open to the sky or an open verandah, carport or the like.

    (b) A window required to provide natural light that faces a boundary of an adjoining allotment must not be less than a horizontal distance of 900 mm from that boundary.

    (c) Natural lighting to a room in a Class 1 building may come through a glazed panel or opening from an adjoining room (including an enclosed verandah) if-
    (i) the glazed panel or opening has an area of not less than 10 % of the floor area of the room to which it provides light; and
    (ii) the adjoining room has windows with an aggregate light transmitting area of not less than 10 % of the combined floor areas of both rooms; and
    (iii) the areas specified in (i) and (ii) may be reduced as appropriate if direct natural light is provided from another source.

    upload_2019-12-9_9-44-57.png
     
    significance likes this.
  12. Thomacino

    Thomacino Well-Known Member

    Joined:
    9th Nov, 2018
    Posts:
    174
    Location:
    NSW - Sydney
    From a valuers perspective for mortgage assessment, my definition of a bedroom is;
    -equal or greater than 9m2 area
    -adequate natural ventilation and lighting
    -clearance of 2.4m
    -not a thoroughfare to another area, i.e. a walkway to the courtyard..
     
    Brad_T and significance like this.
  13. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,299
    Location:
    Sydney or NSW or Australia
    Build a dummy wall part way into the room and make it a store room. Move a doorway into the kitchen and turn the room into a buttlers pantry.

    Find another creative way to lose a room.
     
    Brad_T likes this.
  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,643
    Location:
    Sydney
    Council DA is required to change rooms. Not typically an exempt development.
    That said as a reduction to 2Bed is probably simple. Reverting later more complex.

    I have been asked this question many time in the context of CGT as sometimes people want the costbase on initial use as PPOR to be low so the tax free exempt gain is boosted. However it doesnt work that way. s118-192 only uses a valuation to reset a gain for a property that has always been the home NOT one which has been an investment. I mention this only if that was your thinking.
     
    Brad_T likes this.
  15. Brad_T

    Brad_T Member

    Joined:
    8th Dec, 2019
    Posts:
    6
    Location:
    Adelaide
    I would like to thank everyone for their posts.

    Cheers,

    Brad
     

PFI can assist you with your investment strategies for your SMSF, Life Cover for your members and assistance with compliance. We provide the research to ensure your investment selections achieve the goals. This is the value of advice