Extra room - will it add value?

Morning Propertychatters.

Got an apartment in the nice pocket of the outskirts of Sydney CBD. Dining area never gets used.

Do you guys see any value in enclosing the dining area to create an extra room? An extra room would normally mean better rents and better value but it would be taking away a chunk of the living area.

Opinions?

 

I wouldn't waste my time unless you have a lot more confidence that it will increase the value by at least 3 times more than it costs to do. You need to look at comparables in the area.

Even if its feasible, then you have additional problems with whether you're allowed to do it by strata.

 

No floor space increase = little to no value add.

 

Thanks for the replies guys, strata approval I got, will be done via a CDC.

No increase in gross floor area, purely partitioning. I guess the only thing going for it is there are not many 3 br in this masterplanned community except for penthouses so it would offer something unique. You lose your dining room but you get an extra office/bedroom. Having said that you could still use the room as a dining room but it wont be open and connected with the living area anymore or kitchen.

 

I used to do this a lot back in the day in melb adding bedrooms and bathrooms. if it is just a straight room 2 walls and a door would cost like 3+K including painting etc.

you need to have a good knowledge of Body Corp regs and also buildings with 3 storeys or more require realignment of the fire sprinklers (which cost $$). you would require the body corp manager approval as well prior to commencing.

Not sure how it is in sydney but in melbourne older apartments were bigger and all it required is reconfiguration and you basically were up a price bracket.

 

Just be sure your not turning it into a Frankenstein dwelling. It could have the opposite impact with value.

 

Thanks mate, it's going to be straight forward, strata approval already sorted and no need to alter existing essential fire services. Building is less than 25m in effective height and therefore no detection, no sprinklers or mech vent.

Thanks Leo, if I was going to do it, I would do it nice. Thinking of ripping up the carpet, doing the wall. The for the walkthrough kitchen, use joinery to seperate kitchen from new room, that way kitchen has additional storage and the new room has storage. Paint the whole place, and new floorboards throughout except for the bedrooms (carpet)

The only thing I'm not sure about is whether gaining a room is going to add value over losing some living space and seeking opinions.

Cheers

 

i suppose you would have to see the size of say 3 bedroom (say 90-100sqm) and 2 bedrooms (70-90sqm). If you have a 95sqm 2 bedroom - then if you create it to be 3 bed with ensuite (price bracket would move up)- I've done 15-20 of these this in early 2000s before. It was alright returns if you asked me.

 

Hi Gavin,

If yours is the only 3 bedroom unit and the area nearbye has mainly 2 bedrooms than I think it can ad value. If its mainly younger renters or small families potentially viable as alot of younger ppl eat in the loungeroom now.
I have previously done this and added value. I have however paid particular attention to creating light in the kitchen as the room is boxed in. We have added large skylights to the lounge and dining. In 1 property we added a row of glass brick walls to the top of the room so light still came through.

I have seen a 12% growth in the property value from the now 3 bedroom over a unit I have in the same complex with 2 bedrooms and have seen 15% increases in rental.

If your target market is seniors than I would suggest against it as I have found dining areas appealing to that market.

 

is it that hard for a renter to put up a simple, cheap portable screen and then use it as a room anyway ?

So suppose depends on if your selling or wanting more rent, can't really be a bedroom if no window ?

 

It can add value but it really depends on a few factors.
1.The new room must have its own window or ddont even bother.
2. The remaining living space must still be substantial as a 3 bedroom will generally need more living space than a 2 bedder.
3. Do you have 2 bathrooms? People will pay more for 3 bed 2 bath because it allows people to house share quite easily. Sharing bathrooms aint great especially with 3 beds. Also 2 parking spots would be good

 

it all depends on size. there is no point having 75-80sqm as a 3 bedroom. if you have 100 or 110sqm it's pretty much a given. Even adding it a study would add value.

 

Thanks for all the great replies guys.

I have gone and measured up the place and got the following measurements:

- Total size of apartment is 108m2.
- If dining area was to be divided, remaining living area would be about 20m2 including the usable chunk to be 5.2m x 3.7m.
- New room will have natural light and ventilation (large openable window).

I'm still im two worlds about whether or not to do the extra room.

It is a premium end of the market and I fear I'll be putting off the target market who would probably want a larger living area as opposed to an extra room.