Forums / Property Investing / Value Adding / Turning 1 BR into 2 BR: Cost vs. Return

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  • Profile photo of ElysiumElysium
    Participant
    @elysium
    Join Date: 2018
    Post Count: 0

    Hello,

    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.

    Question:
    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 you

    • This topic was modified 2 weeks, 4 days ago by Profile photo of Elysium Elysium.
    • This topic was modified 2 weeks, 4 days ago by Profile photo of Elysium Elysium.
    • This topic was modified 2 weeks, 4 days ago by Profile photo of Elysium Elysium.
    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 271

    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.

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