Hey everyone, just got a couple of questions about 1 bedroom units. I found a unit that is quite small. literally bedroom with ensuite, loungeroom with kitchen. I have not been inside yet, just glanced through the window. Its in a very nice area on the gold coast, and the block its in is only 4 units. The block consists of a 3 bedroom unit, 2*2 bedders and then this one bedroom. It was built mid 1970’s and still very much orginial. Sorry i am rambling. My question is how popular are one bedroom units with renters? I am guessing i would probably have to re-do the bathroom and kitchen, recarpet and paint the other rooms in order to attract a decent rent and tenant. The asking price is 159k reduced from 179k. Its not rented, but agent said they would ask $140-160 a week if it was listed with them. My fear in renovating is that the value won’t increase that much because at the end of the day its still only one bedroom. I am not in it for the yield, but i am interested in increasing its value, and getting growth. If i were to do the renovations, how much value would i be adding and how much more rent should i expect to recieve?
Are one bedroom units just a lost cause….?
Matt R (Gold Coast)
Hey Matt,
Units like these can be quite hard to finance. If they are under 50sqm or 5 squares usually the purchaser has to chip in about 30% of the price.
Units like this, especially on the Gold Coast, can easily attract strata fees etc. that can really eat at rental returns as well. I think that you might be coming up against too many obstacles in an investment like this.
Someone else up as late at me…
Sorry what are strata fee’s?
Is that just body corp? The body corp is only $5 a week which is quite attractive. Its over 50sqm, around 65 i think.Matt R (Gold Coast)
Don’t fall for the ‘reduced’ trick. Tell them you’ll take it for $139k ‘reduced’ from 159
Even then I wouldn’t spend more than about 8k restoring it (and 8k can go very quickly when you’re talking kitchen/bathroom).Without seeing the place, it seems to me you’d have to get it for a real bargain in order to make any money on it in the short-medium term.
p.s. I have found one of the easiest and cheapest things you can do to add value is to rip out any ‘regular’ lighting or flouros and put in some nice downlights or other more modern lighting throughout the place.
Even then I wouldn’t spend more than about 8k restoring it (and 8k can go very quickly when you’re talking kitchen/bathroom).You must be logged in to reply to this topic. If you don't have an account, you can register here.
