Keen said:
I have spoken to several PM's before buy / building my IP's and I keep getting the same response - there is greater demand for 4 x 2's than 3 x 1's.
Which sort of areas were you looking in?
I've got a similar response.
In regional WA (and probably most other areas) the 3x1 house was the dominant house type, whether private or commission-built.
4x2 family homes in 'good' areas seem to be most in demand according to PMs.
I suspect it is that whereas 4x2 project homes are very common in newer Perth suburbs, because regional cities grew slower (Mandurah/Rockingham being exceptions), 4x2 houses are less common and 3/1 asbestos or brick predominate.
Middle-class people in country towns (eg govt employees and tradesmen with families) now want Perth-standard homes. This means 4x2/brick/air conditioned/double garage etc.
When talking to a REA in the western suburbs of Melbourne, I got a similar answer. The area I was visiting comprises mainly 3x1 brick houses built in the 70s. Compared to the newer 'project home' sandbelt areas further out, houses were generally older and smaller, but proximity to the CBD, local facilities and transport were generally better.
His thinking was that a 4x2 (or at least 4x1) in an established suburb is likely to be a good renter as it combined size and convenience. Though the rents didn't seem much different, the to let ads showed that they were much scarcer than 3x1s.
Having said that, my IPs are either 2 or 3 br. In one area I saw little price difference between 1 & 3 br and can't understand why people bought 1br (maybe the newer construction date, included furniture and supposedly higher rental yield got them in). 2br are also common but as the area has high rents, I though a 3br would appeal to more people (eg 2 people sharing or a couple).
Quoll, why would townhouses be preferable to semi-detached/duplexes? Townhouses may be (on average) newer, but I like the extra land component with duplexes. Also with townhouses you might have a body corporate and less flexibility re renovating. But both are inferior to detached if you plan on doing something with the land later on.
Rgds, Peter
