Hey all,
From the Brisbane Masterclass today, one of the points I took in was that the valuation of a house is done by the number of bedrooms it contains.
So a 4 bedroom house will be worth more, everything else being equal, than a 3 bedroom house.
Is there a ceiling on this limit? Does the house price diminish after the number of bedrooms hit this limit? Would it be better to have a few large bedrooms than 5 ‘normal/average sized’ rooms? Or does it all come down to ‘the house price is quite impressive because you have 10+ bedrooms, but who would want to rent it out?’.
Also, does council impose a limt on the number of bedrooms under one roof?
Do valuers look at a house, see a huge number of bedrooms and think ‘What were they thinking?’.
Would it be better to have 4 bedrooms and 1 study, or perhaps convert a bedroom into a ‘library’? I’m seeing media rooms in architect plans and cellars as well! Anything is possible!
So many questions, so many ways a house plan can be carved up!!
Cheers!
— MJ.
A 5 bedroom is not excessive to those couples with 4 kids.
As with anything, if there is a demand, there will be a supply. I would not go much more than a 4 bedroom house as an investment though.
Robert Bou-Hamdan
Mortgage AdviserOriginally posted by The Mortgage Adviser:A 5 bedroom is not excessive to those couples with 4 kids.
As with anything, if there is a demand, there will be a supply. I would not go much more than a 4 bedroom house as an investment though.
Robert Bou-Hamdan
Mortgage AdviserCheers Robert… I was also thinking of couples having children later in life, and thus probably only having one or two. You can always have 1 or 2 spare guest bedrooms though!
— MJ.
Hi MJ,
Genuine five bedroom houses are rare, I know, I looked for one. Some are advertised as 5 beds but are actually 4 and a study. (the fifth is small and has no BIR).
I do agree that over 4 beds could be entering into a niche market. Perhaps student accomodation.
I have noticed a lack of 4 bed houses for rent, most have two or three. That could be a hole in the market. I was considering my options and looked at renting, very hard to find a 4 bedder with a study and a garage, but I might be unique.
There are still some big families out here!
Cheers,
Sue [blush2]“Be careful not to step on the flowers when you’re reaching for the stars”
Re
“Also, does council impose a limit on the number of bedrooms under one roof?”In a round a bout way. Normally have a regulation about, …. Number of unrelated people who can live in one house. …. ( 5 or 6 people )
There are also limits on max building area.(as a % of lot size) So if u have large number of bedrooms , u are taking floorspace from somewhere else.
Hi MJA
I was at the masterclass as well. I think the bedroom thing is more a useful rule of thumb than a precise $ per bedroom formula. I’ve noticed also that the premiun for an extra bedroom is different in different markets even comparing just the standard 2 bed and 3 bed varieties. Rolf de Roos in one of his books talks about adding a bedroom by closing in a carport that shares the same roof as the house.
Hi Sue,
Quote:Originally posted by diclem:Hi MJ,
Genuine five bedroom houses are rare, I know, I looked for one. Some are advertised as 5 beds but are actually 4 and a study. (the fifth is small and has no BIR).
I do agree that over 4 beds could be entering into a niche market. Perhaps student accomodation.
I have noticed a lack of 4 bed houses for rent, most have two or three. That could be a hole in the market. I was considering my options and looked at renting, very hard to find a 4 bedder with a study and a garage, but I might be unique.
There are still some big families out here!I’ll ensure that if we do go for the extra bedroom, that is has a built-in-robe. So insightful!
Cheers,
— MJ.
I was at Brisbane Masterclass too.
Is property in question near university, TAFE or hospital? If so worth exploring possibility of renting to students/nurses on a per room basis to boost income. I am exploring that option down here in Adelaide.
Best wishes
Markus
Hi Markus
I think I met you at the Brisbane Masterclass I and we swapped details. Wanna do a JV. I’m interested in student accom too <lol>
Sue OwenMIT | Owen Real Estate
Email MeHi Markus
I think I met you at the Brisbane Masterclass I and we swapped details. Wanna do a JV. I’m interested in student accom too <lol>Mja I have been reding your posts, is the 5 bedrooms for your PPOR in which case I guess it is a personal preference thing
Sue OwenMIT | Owen Real Estate
Email MeHi Sue,
Yes I remember you. Have your card in front of me. A JV could be a possibilty. Have a few things to do ( get house ready for valuation, setup company/trust etc) before I could do anything realistically so I am working hard on doing that but I am doing my research at moment. Will email soon or feel free to contact me.
Regards,
Markus
Hi MJ
I’ve always found the more rooms the easier to rent. Well around Brisbane anyway.
If the number stack up I wouldn’t hesitate.
Clay
Quote:Originally posted by Millionaire in training:Mja I have been reding your posts, is the 5 bedrooms for your PPOR in which case I guess it is a personal preference thing
Yeah, is for a PPOR which may end up as an investment unit…
— M.
This month will see the completion of my latest IP in Morningside. It is a 5 bedroom 3 bath with DLUG. The expected rental is somewhere between $500 and $550 per week.
You will find thet there are very few houses of this size in the inner suburbs. Therefore renting them out is a lot easier.
You will find the inner suburbs full of old 2 and 3 bedroom houses. Therefore if you purchase such a house as an IP you are competing with other landlords hence returns are low.
Sailesh Channan
http://www.developersedge.com.au
“Helping you select,develop and profit from property”
Hey Sailesh,
What’s the rental yield for a 5 bedroom place at Morningside?
— MJ.
Originally posted by Sailesh C:This month will see the completion of my latest IP in Morningside. It is a 5 bedroom 3 bath with DLUG. The expected rental is somewhere between $500 and $550 per week.
You will find thet there are very few houses of this size in the inner suburbs. Therefore renting them out is a lot easier.
You will find the inner suburbs full of old 2 and 3 bedroom houses. Therefore if you purchase such a house as an IP you are competing with other landlords hence returns are low.
Sailesh Channan
http://www.developersedge.com.au
“Helping you select,develop and profit from property”
Hi MJ,
As I am currently renting I know it is hard to find 4 bedroom houses. With only 2 children but using a bedroom as an office it is easy for the space to be filled. With so much open planning in houses it is always good to have a room where you can go to shut the door.
If not it can always be used as the guest room.
I also had my house valued and having 4 rooms and 1 study was certainly a goos thing in Sydney.LG
The expected gross rental on the Morningside place will be around 5.8%.
The property was acquired through a small lot subdivision where I split a 800 sqm block to build one brand new 5 bedroom house and renovate the existing house into a 4 bedroom 3 bath house.
The profit from the exersice is around $180 000. Both houses will be rented out.
The long term growth for Morningside (5km east of CBD) is my main reason for keeping these houses.
While the yield is reasonable it is the current equity and future growth that will enable me to keep adding quality properties to my portfolio.
Sailesh Channan
http://www.developersedge.com.au
“Helping you select,develop and profit from property”
I don’t think 5 beds are excessive – especially if the market has a need for them!!
Learn, Love, Strive. Make a difference!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
