Hi,
I’ve been racking my novice mind in how best to value add to a property that I have in Edge Hill, Cairns. It’s essentially a modest brick 3/1/3 (SLUG and huge double carport, plus a big double shed out the back without vehicular access (not sure if I can get this).
My question pertains to converting the SLUG. It is currently under the same roofline as the remainder of the house, and in addition to the roller door, an additional external entry door off the front porch, and rear access through a laundry area into a huge enclosed (but not habitable) area separate to the house. I think there is a niche for affordable 4 bedders in the area, most are 3/1, with only luxury properties any larger. It would be easy to overcapitalise, it needs to be functional but modest.
My options are to:
1. Convert SLUG to a 4th bedroom only.
I would need to close off the front access door and roller door, and establish a new internal access point from the main living area. This would leave it as a 4/1 house. It is obviously the cheapest alternative given the lack of plumbing, and I wonder if it might cost approximately 8-12k (would need to raise the floor off the slab, windows, and internal and external cladding of all walls). THe improvement on rental yield, and capital value is difficult to establish without comparable 4/1 properties in the area. Most homes are 3/1, and then generally a large jump in luxury and price to 4+/2+ homes.
2. Convert it into a main bedroom with ensuite.
This would still require internal access to be created, plus the additional cost related to constructing a bathroom from scratch, with the toilet the other end of the property. I also wonder if the room is too narrow for a main bedroom.
3. Convert this to a granny flat. (I’m trying to read about the legalities of this in QLD).
4. Knock down the wall to enlarge the currently quite small living and dining spaces? This would seem to me hard to justify/recoup the expense.
In general terms, are any of these an obvious avenue that you would look to pursue first? I don’t really know where to start and would be grateful for ideas and thoughts. Calculating possible yields is difficult when there is a dearth of comparable properties, especially in considering the granny flat idea.
Befuddled B
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