Double Story houses for investment...

Hi

Just thought if I cannot buy a bigger block and have to go smaller I could build a double story house to have a bit more backyard space

How do double story houses go as investment? Even if its a smaller one?
Had a sales guy from a builder say negative stuff but it could just be his sales pitch for them to save money

" In my opinion, not worth the hassle and huge extra costs to build a double storey. Particularly for investment. And a lot of tenants and buyers hate double storey, so it narrows your potential market (which is not a good thing)"

what you guys think? Honest or sales pitch ?

 

Why do you think a builder would talk you out of a higher sale?

 

True that, didnt think of it that way

but the way I did think of it was, ( and I could be totally wrong) Is that single story house is more cost effective for the builder?

 

More likely, the builder thought you would be surprised at the extra cost of a double storey, or that it didn't fit into the budget you said you wanted to spend.

 

If the builder said instead sure doubles are great! Would you think their just trying to sell you more?

 

I'm just a little skeptical of what builders sales people say so wanted some confirmation and feedback about building double story housing for investment vs single story

 

If you do go double storey, make sure you have a wide staircase as there will be tenants moving furniture in and out. Some we have seen have such a narrow enclosed staircase with an awkward turn - hard to see how anyone could get furniture upstairs, let alone cope with the more frequent moves that come with renting.
Marg

 

Have you looked at other houses in the area? Are they mostly single or double storey?

 

It will cost much more to build double storey, also you will need a master bedroom/ensuite on ground floor otherwise you will limit your market.



MTR

 

I was not aware the cost of double story is higher I just thought the cos of any house goes by the inclusions + the squares of the house

 

I'm with Pat. How much more does a double storey cost over a single?

I get that with a double you'll probably need an extra bathroom (toilet at least) and that adds. The thing i've noticed about double storeys is the plumbing tends to line up between floors. So the bathroom upstairs is on top of the bathroom downstairs etc - that must save a bit in plumbing?

 

Among other things, with a double storey you need more scaffold which costs more.

 

True.

There's half the roofing cost. Surely a between storey floor must be cheaper than a slab?

 

Double storey Significantly higher, get a builder to quote

I avoid double storey unless it makes sense, end values/product commands higher price

 

I think single storey is better for an IP. Most of the double storeys in the Druitt are shockers. They look like someone got a crane , hooked up the back shed and placed it on top of their house lol.

I think double storeys limit your tenant base. Older tenants wont like going up and down stairs with their arthritis. Parents with young kids are fearful of stair case accidents. Bogans simply can't afford the rent. There goes 70 % of your tenant pool.

The landlord's jingle is to stick to single and keep it nimble.

 

Makes sense inner city, high land value, small block but people don’t want a to live in a small post war box IMO.

 

No point in outer suburban areas where land is cheap but inner city it is worthwhile. More expensive build though.

 

Just wondering- why is that a limiting factor for some tenants?

 

from an investment point of view, it will limit your market when selling.


Tenants ?? who knows?? depends on suburb/demographics, but older folk may have issues with stairs.

When developing in Melb I know Single floor units, new builds are in much higher demand and fetch higher prices than double storey town homes. Tells me there is much more demand for this product

 

Double storey is usually at least 30k more expensive than single storey for a similar sized house.