ElysiumParticipant@elysiumJoin Date: 2018Post Count: 5
I own Two 1 BR apartments in new buildings in Brisbane.
Rental return (after management fees, body corporate etc) is about 3.3%
Rental is 410 AUD weekly.
Converting them into 2 BR would be easy (use space from the outdoor terrasse) and I believe not very expensive (adding 1-3 walls).
Would this increase my rental income?
It would be a rather small 2 BR apartment, but I suppose there are people who can’t afford a real 2 BDRM, perhaps a young couple with a child, who would be willing to pay a bit more for an extra usable bedroom at the sacrifice of outdoor space?
https://ibb.co/30XyZ4T See Image for example
Thank youJaxonParticipant@jaxonaJoin Date: 2014Post Count: 282
Ok, providing it complies with the body corp bylaws and your not altering any external space you can do this, the issue is it technically is not zoned, approved as a 2bedroom so for resale you should and can list as a 1bed or 1+
but I have heard of cases of people being compensated for buying a 3b that was legally a 2 bed and study.
in regards to rental return, that is fine, yes you would likely get a better rental return.Ricky JohnsonParticipant@fixedandsoldJoin Date: 2019Post Count: 9
Find some local agents in your market and ask. I can’t imagine that a 2bedroom would ever rent for more than the combined income on the 2 singles, especially if it is a very small. Your return is bloody awful if I am understanding it correct at 3.3% (is that annually) if so – that’s insane!! Can you get more rents doing airbBnB? If not, I’d sell them both before you market crashes and redeploy your funds into something earning 10%+ a year. You might be able to partner with some flippers on your side of the pond to boost your income. I do it with a group in the states and am seeing 10% to 20% annually. They’ve just announced that they are going to try to get us 30% on the higher end flips they are doing but I will believe it when I see it. They are still guaranteeing 20% on the flips and after a few years with them, I am comfortable. Finding good returns isn’t easy especially for the smaller investor but your unit there have to be expensive? How much do you have in them? Ricky