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IP 4bed 2bath vs 3bed 1bath

Discussion in 'General Property Chat' started by Samj, 8th Apr, 2016.

  1. Samj

    Samj Well-Known Member

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    QLD
    Couple of property managers told me usually they find long term good tenants for 4'2 properties over 3'1 properties. And tenants in 3'1 properties moves in and out very often. And I was suggested to buy a 4'2 property if I can afford it as I'll get better return in long term. I am just wondering what's your opinion/experience on that?

    Location : 20Km radius from Brisbane CBD
     
  2. ashish1137

    ashish1137 Well-Known Member

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    Compare the end cost and rent.

    Single story or double story.

    New build or existing house.

    Long term, building depriciates, land appreciates.

    Lastly, at certain places, rents are governed by the demand of the product. So all the factors need to be considered.
     
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I'd be taking the advice of the couple of PM's you asked for an opinion from. They are the ones leasing every day. They should know.

    Generally a 4,2 would suit a family and likely to stay longer. A 3,1 is common but suits a wide range of tenants (but too small once a family has more than 1 child, with brm #2 being used for guests or a study).
     
  4. larrylarry

    larrylarry Well-Known Member

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    Agree with @Propertunity local agents should know their area inside out. If u buy something old ask the agents what you can do to improve rent so you won't overcapitalise.
     
  5. Magnet

    Magnet Well-Known Member

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    While I agree that the agents should know what they are talking about I would look very closely at the demographics of the area. Go with what the majority required to widen your tenant pool. I would also look at what gives you the biggest yield. I wouldn't be buying a more expensive lower yield property just because the tenants are more stable.

    We are onto our 2nd lots of tenants in our Woodridge property since August 2014 and the place hasn't had a days vacancy since settlement. It's a 3 bedder. 1st tenants were a young couple and their mate (guy). Hairdresser and the guys had their own painting business with 2 dogs. Place was kept immaculate. New tenants are a retired couple. House & garden proud. Place is even more immaculate than last tenants and rent is always paid well in advance. Our target market was families with kids/pets but because it appeals to more than 1 demographic we have had a wider tenant pool.
     
  6. Whitecat

    Whitecat Well-Known Member

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    Agree with yield analysis approach but also consider that in some ways its future proofing a bit because 2 bathrooms is becoming very strongly preferred. Gives tenants much more options. nothing new is being built with one bathroom any more.
    Another way to look at it is get a place that gives that option of adding ensuite easily in the future
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    4 bedrooms, 2 bathrooms are generally more in demand for rent and sales in many areas.