Converting Dining Room into 4th Bedroom

[danwatto]

Hi All,

I'd be interested to hear advice from anyone who's taken a 3 bedroom house and converted the dining room into a 4th bedroom:
1. Does it add value to the valuation and how much? $250k property - would it add $25k-$30k?
2. How much did you find it added to your rent?
3. Is the increased rent worth the hassle and maintenance - i.e. people who prefer more bedrooms are usually more likely to be sharing or have alot of children i.e., more tenants = more damage/maintenance/wear?
This area is a lower socio-economic area, so I would be a little concerned with point #3. Tenants who want a dining room would probably be better tenants than tenants who want 4 sleeping rooms but no dining...

In this case, the dining room already being a distinct room, the process of conversion is:
1. Fill in the doorway between the kitchen and the dining room making it a flush wall. The kitchen already has a large opening to the lounge room, so this doorway is not needed by the kitchen.
2. Change the other dining room doorway which is currently a sliding door into a hinged door, solid door that's sound proof. The door would open onto the lounge room.
3. Add an ikea wardrobe.
The bedroom will be only 3m x 2.6m, so most probably a single room.

Any feedback would be welcome.

Cheers

 

[Propertunity]

I'd be interested to hear advice from anyone who's taken a 3 bedroom house and converted the dining room into a 4th bedroom:
1. Does it add value to the valuation and how much? $250k property - would it add $25k-$30k?

Yes it adds value but only if:
a) The kitchen is big enough to be a proper "eat in kitchen".
b) There are 2 x bathrooms in the house (or a 2nd WC as a minimum). No-one wants a 4brm 1bathroom house, much.
The biggest uplift in end value normally comes from turning a 2brm into a 3brm under the same circumstances you describe,

2. How much did you find it added to your rent?

$15-20pw depending on the area

3. Is the increased rent worth the hassle and maintenance - i.e. people who prefer more bedrooms are usually more likely to be sharing or have alot of children i.e., more tenants = more damage/maintenance/wear?

Never found this to be a problem, maybe others have?

This area is a lower socio-economic area, so I would be a little concerned with point #3.

I would not worry about it.

Tenants who want a dining room would probably be better tenants than tenants who want 4 sleeping rooms but no dining...

Broad sweeping generalization - not always are extra bedrooms used for sleeping - I've seen home office/study and gym room to name a few.

 

[danwatto]

Thanks, kitchen is fairly long but not wide. Could have a small table in there but wouldn't really eat in as it's not open plan, it's 1970 style kitchen as a separate room.

Lounge room is quite large though so probably better to have dining table to the side or back of the lounge room, behind the couch.

I see your point about not many wanting with only 1 bathroom, and this is definitely the case here with only 1. Searching others in the area, they are renting for $15-$30 more, but with an extra bathroom it goes up to about $40 more.

I'll think about it some more..

Probably the key thing is - what will valuers do? Can I get more equity in a re-valuation by doing this?

 

[skater]

Yes it adds value but only if:

b) There are 2 x bathrooms in the house (or a 2nd WC as a minimum). No-one wants a 4brm 1bathroom house, much.

I hate to disagree, but this is a generalisation. If the property is in a housing commission area, there is no need for a second bathroom, or even a toilet, as 4 bedders may be scarce, and they rarely (in the ones I've seen) have a second WC. Although in saying that, sometimes the layout has enough room to squeeze one into the laundry.

Thanks, kitchen is fairly long but not wide. Could have a small table in there but wouldn't really eat in as it's not open plan, it's 1970 style kitchen as a separate room.

Is there room to cut a servery through to the lounge room?

Lounge room is quite large though so probably better to have dining table to the side or back of the lounge room, behind the couch.

I see your point about not many wanting with only 1 bathroom, and this is definitely the case here with only 1. Searching others in the area, they are renting for $15-$30 more, but with an extra bathroom it goes up to about $40 more.

I'll think about it some more..

Probably the key thing is - what will valuers do? Can I get more equity in a re-valuation by doing this?

 

[cadence]

If by converting to a 4 br, it doesn't impinge on the other living areas too much, it will definitely add value from a valuation perspective. No. of bedrooms is one of the first things that the valuer considers. There's a price range for 3br house and the price range for 4br is invariably greater. Sometimes the highest 3br price is the lowest 4br price. If your end result looks ok, you might edge closer to the middle of the price range for 4br, but do some research on domain and work out net position (increase in value less cost of conversion).

 

[danwatto]

Hi All

Kitchen has a fairly wide opening to the lounge room so should be ok. Once closing off the dining room door, this will be the only access to the kitchen too.

I might seriously consider it since could get good valuation especially if it's a modelled estimate and the cost is fairly cheap for the door changes.