All Topics / Help Needed! / Difference between 2BR and 3BR

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  • Profile photo of kentonkenton
    Member
    @kenton
    Join Date: 2008
    Post Count: 28

    Hi

    For investment purposes, say +'ive gearing or wraps, what difference is there between 2BR and 3BR houses?

    Let's say there's 2 similar houses, same area and the 3BR is worth $200k, what would you suggest would be a good price for the 2BR?

    Thanks
    Kenton

    Profile photo of Jeff JohnsonJeff Johnson
    Member
    @jeff-johnson
    Join Date: 2008
    Post Count: 50

    possibly as much as 30k a room although some 2 bedders have extra rooms downstairs and others have large enclosed verandahs used a sbedrooms. 2 br houses are harder to on sell and rent if there is surplus stock on the market at the time. I just bought one advertised as 2br but is actually 5br 2 storey, dud agent my win, renting to 5 uni students who think it a palace.
    Some 2brs have been successfully turned into 4br with re aligning internal walls. This is down to the structure. Some will only ever be 2br. I prefer 4br as they will always rent over less when the going gets tough. All the best,
    jeff

    Profile photo of kentonkenton
    Member
    @kenton
    Join Date: 2008
    Post Count: 28

    Thanks heaps for that Jeff.

    You have now lead me to another question.

    Our home, which we are renovating to rent or sell is a 3BR, 2 living area house worth about $370k. The second living area is a room at the front that is totally underutilised. To turn it into a 4th bedroom, the front door would need to be moved and an internal wall and door added. – yet to be quoted

    A RE agent has suggested we leave that reno, but make the suggestion to the purchaser.

    My question is, how much do you think it is worth spending to do that reno without overcapitalising? Do you suggest that the 4th bedroom could add $30k?

    Kenton

    Profile photo of Jeff JohnsonJeff Johnson
    Member
    @jeff-johnson
    Join Date: 2008
    Post Count: 50

    It depends on the available stock of properties for sale at the time but in my arket place yes. Building internally is var cheaper than extending roof line. 9internal walls and fit out as opposed to walls, roof, floors, council, draftsman etc) Talk to your agent and ask for some sales figures of 3 and 4 brs. I find that most families want 4 br these days, even young couples with no kids! depending on the demographic, an ensuite could be considered too if you don't have one. You might be better to value add through cheaper changes like kitchen tops and fronts, handles or front fence and landscaping. Get several quotes and weigh it up Some rental properties these days have a spa outdoors or covered built in barbeque, dishwasher which will boost rental at a relatively low cost . Built ins are a big want for tenants these days and secure parking. Talk to local property managers to see what is best for your area.
    May your tradesmen show up on time and your projects be eternally completed under budget
    all the best

    Profile photo of MITMIT
    Participant
    @millionaire-in-training
    Join Date: 2004
    Post Count: 154

    Hi Kenton
    It all depends on what you target market is and what purchasers are looking for in the area.
    Check on realestate.com.au to see what else is selling for in your area and ring a few of the agents to see what they sold for.
    If the target market is not thre or looking for a 4 bedroom place there seems little sense in spending the money on the reno.
    Ask as many agents as you can find, and prefereably those that are really active in your area.
    All this is assuming you don't have access to RPData, then again you could ask agents for a list of comparable sales in the area and they could download this stuff for you.
    Make sure you are comparing like with like, ie same size land and houses etc, not jsut the number of bedrooms.
    Hope this helps
    Sue

    MIT | Owen Real Estate
    Email Me

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