Adding a bedroom

[mattl]

Hi,

Has anyone had any success adding an extra bedroom to their investment property in terms of increasing the rent and/or boosting the value?

I'm looking for someone willing to share their story with API magazine.

Please share your experience here or drop me a private message if you're interested.

Thanks,
Matthew Liddy
Journalist
Australian Property Investor
http://www.apimagazine.com.au

 

[Ana]

Hi Matt,

I have sent you a PM.

Wishing you every success,

Ana

 

[caporale]

G'day Matt,

I have also sent you a PM with some details of one of our projects that did just this.

Cheers,
Scott

 

[Bargain Hunter]

Ana & Caporale,

Why all the secrecy? How about you share your experiences with the group.

Andrew

 

[mystery]

Ana & Caporale,

Why all the secrecy? How about you share your experiences with the group.

Andrew

Or we could all read about it in API .....

 

[Gatoblanco]

garage to bedroom

Or we could all read about it in API .....

And if one of them is a garage conversion to a room then I would be even more interested because that is what I am contemplating.

 

[Ana]

Hey guys,

These seem to have become our speciality.

Adding bedrooms and bathrooms. Some of them are additional living areas that are converted into bedrooms, a couple have been a garage converted into a bedroom with ensuite, laundry converted into a second bathroom, varandah converted into additional bedroom, etc.

These types of renovations give us the highest profit margins for the cost they take to implement. Changing a property from a 3 bedroom 1 bathroom for example to a 4 bedroom 2 bathroom takes it to a completely different price bracket and ensures a profitable result regardless of what is happening in the economy.

If you would like more info let me know I can include some figures for the deals we have done or have a look at the website. I will be adding more photos over the next few weeks, or feel free to send me an email.

Wishing you every success,

Ana

 

[Zeddy]

And if one of them is a garage conversion to a room then I would be even more interested because that is what I am contemplating.

I've seen one or two people do this. They add another skin of lightweight framed walls to the inside skin of the garage, tile the floors, run in electricity, etc.

Can anyone comment on the legality of this? If there is a building surveyor present, can you comment on whether this complies with the BCA for a living space?

 

[Y33]

Making 4th Br & 3rd Bathroom from storage room.

Ana,

Sounds interesting.

I have an IP which eventually may become my PPOR.

It has an extremely large storage room that shares a common wall with the ensuite running off the master bedroom. My plan is to try and utilize current plumbing and build a small ensuite at one end of the storage room and turn it into another bedroom and maybe add a small kitchenette.

Any brief suggestions, advice or hints on utilizing existing plumbing etc?

 

[Ana]

Hi Zeddy,

All garage conversions that we have done have gone through the council to get proper approvals. The main things they have shown concern about is whether the new wall is constructed & waterproofed properly, whether drainage has been installed on the outside of the new wall, the height of the garage floor in comparison to the rest of the house and the leveling of the floor. As long as you do it properly, and follow any regulations that particular councils may have in place, your renovation will be legal.

Wishing you every success,

Ana

 

[Ana]

Hi Y33,

It sounds like a very interesting renovation. Right up our alley.

The less new piping, new drainage and sewerage that you need to implement the less it will cost you in the long run. So if you can be close to the wall or back on to the existing ensuite, the less it will cost in materials and labor for the renovation.

I personally love putting in double showers, as they don't cost too much more to put in then a normal shower and they definitely have a much higher return.

Best of luck with your project. I'd love to hear how you go with it. If you get a chance can you send me an email with your progress. Feel free to ask me any advice as you go too and I'll try and help if I can.

Wishing you every success,

Ana

 

[Y33]

Ana,
Thanks.

The project is still a year or 2 off unless I do it whilst the tenant is in the house.

The toilet and shower in ensuite is connected to the wall that joins the storage room so hopefully minimal work needs doing in regards to plumbing. Will send off some information to you at a later date to get your opinion.

The work can be done with minimal disruption to the tenant as the storage room is at the end of the house but has separate entry under an outside common breeze way. Have also thought of enclosing the breezeway with security screens and doors to make the house more secure.

 

[Peter 14.7]

Will watch for the article, Peter 14.7

 

[leiw16]

Estimate Project Costs

Hi Ana,

I'm in the process of purchasing an investment property and I intend to add additional room, shower and toilet to increase the rental income. I need to consider the potential for extension as well as the amount of additional investment before making the final decision. I would appreciate if you can give me a rough estimate (highs and lows) for the following:

(1) Room extension to existing house
(2) Convert living room into bedroom
(3) Convert garage into bedroom
(4) Additional shower
(5) Additional toilet

At the moment I'm considering 2 properties:

1st Property:
Approx. 25 years old; built with weather boards; land size approx 650sqm; 3 bedrooms; 1 bathroom; seperate double garage at the back.

How much does it cost to add 2 additional bedrooms; 1 additional shower and 1 additional toilet?

2nd property:
30 years old; brick veneer; landsize 780sqm; 3 bedroom; 1 bathroom; attached double garage.

What is the estimate for adding 2 additional bedrooms; 1 additional shower; 1 additional toilet; convert double garage into a single bedroom?

The issues concerning me are council approval and insurance....

(1) Do you provide the draft plan for council approval? Would that be part of the project or do you charge separate for the service? If so how much?

(2) My friend told me not to convert garage to bedroom because insurance will not cover. Is it true? Do you have much experience dealing with the insurance companies?

(3) I was having a look at your website (www.WinningFormulasForSuccess.com), it seems to me that you are providing education services. Do you also handle building/extension/renovation projects? If so do you have the necessary license and do you provide warranty?

Sorry for asking so many questions but I'm sure other forum members would have similar questions in mind and we'd appreciate if you can share with us your experience.

Cheers.
Lei

 

[leiw16]

Hi Matthew, which issue/date the article will come out? Be sure to let us know and we'll grab a copy...

 

[anson_he]

Hi guys,

A very interesting topic here about adding value. I have done a few quick flicks with renovation in Newcastle without any structural changes to the properties so I do not need to deal with Newcastle Council. (buy low , add value, sell high)

Now I found a good reno project in Newcastle that I can change a two bedroom house to a four bedroom one with ensuit. To make it happen, I need to make some structural changes like removing some existing walls. My question is if I need to get council approval for knocking down walls or putting up a new wall.

I have asked Newcastle Council, they told me I will need to get approval which will take 6 to 8 weeks. However, some real estate agents told me it shouldn't matter if I just remove or add walls and council wouldn't have detailed floor plan for old houses so basically I can do whatever I like and council will have no way of knowing what I have done.

I know each council is different, but could anyone share some of your experience in this kind of renovation with minor structural changes? Should I go to get council approval or not?


Thanks in advance.

Anson

 

[Propertunity]

My question is if I need to get council approval for knocking down walls or putting up a new wall. I have asked Newcastle Council, they told me I will need to get approval which will take 6 to 8 weeks.

However, some real estate agents told me it shouldn't matter if I just remove or add walls and council wouldn't have detailed floor plan for old houses so basically I can do whatever I like and council will have no way of knowing what I have done.

Anson, they are both right

Should I go to get council approval or not?

Strictly speaking, Yes. In practice - many ppl do not. Can you run into trouble down the track - Yes, probably - especially IF you are selling AND the council does have a detailed floor plan AND your intending purchasers OR their solicitor is a stickler for details.

Also in NSW you need to become an owner-builder - where work is any work (including supervision and co-ordination) involved in the construction of, or alterations, repairs or additions to, a dwelling (which includes a house, terrace, town-house, garage, swimming pool and certain other structures and improvements):
* where the reasonable market cost (including labour and materials) exceeds $5,000, and.......blah blah blah

Read the rest on the Fair Trading web-site. So take all these things into consideration before maknig a decision.

 

[Y33]

Depends on how good the other persons conveyancer is. My conveyancer noticed that part of a wall was missing where someone had decided to create a slightly larger dining/kitchen area. End result was they had to put a support beam in before settlement. Don't know if it needed approval or not but my conveyancer was right on to it.

 

[turk]

Haven't tried this myself, but would it be posssible to set up a garage as a bedroom
i.e. lining, lights, flooring etc.

When it came to selling the property market it as " a 4th bedroom subject to council
approval", or as a storeroom which I believe does not need council approval?

Cheers

Pete

 

[Aaron75]

converting my 2 car garage into a master suite

I am going to turn my 2 car garage into a master suite.What kind of price range would I be looking at and around how much equity should I gain.My garage is a side entrance so you won't beable to tell from the street and it won't disrupt the balance of the house.Thanks in advanced for any advice or reccomendations.