Three or Four Bedrooms

From: Bill Lambert


As we are about to purchase another property I was interested to find out how different sized houses performed for others. Especially the difference between 3 bed 1 bath, and 4 bed 2 bath. I'm talking fully detached, not townhouses or units.
Vacancy rates, capital growth, yields, types of tenants, etc. The nitty gritty of peoples experiences only if you want to share of course.
I'm sure there are many anticipating some great stories!
 
Last edited by a moderator:
Reply: 1
From: Geoff Whitfield


Bill,

That would vary enormously depending on where you are.

I'd be talking to local real estate agents and finding where the demand is.

Geoff
 
Last edited by a moderator:
Reply: 1.1
From: Bill Lambert


Geoff,
I realise there is a huge difference between areas, what I was interested in was what happened when the agent had stated "great area for families this 4bed 2bth will really rent well, there is such a shortage in this area etc etc." Peoples experience in what actually happened to them, positive or negative.
 
Last edited by a moderator:
Reply: 1.1.1
From: See Change


Talk to the property managers about what they want ( they have to let it ) , and where the demand is. Most PM's I've talked to are very honest about the type of property they want, and I've had one tell me ( in front of the selling agent ) that the house the agent was going to / or has shown me was not what I should be buying in that area ( that's a polite version of what he said ... ) .

With smaller agencies , where the principle runs both sides, I haven't seen the same honesty , as the sales generate more money.

see change

it's better to be guided by your dreams than your fears
 
Last edited by a moderator:
Reply: 1.1.2.1
From: Brian Rich


When i purchased my first IP RE agents just tried too sell me anything that was going regardless if it would rent out or not. Of course every house i looked at was perfect for renting, as stated by every agent. I asked around the managing agents and they all said there is no good quality 3X1 but heaps of vacant 4X2. So I purchased a good 3X1 and it has only been vacant for 3 days total in 20 months. There was of course heaps of people saying I was crazy to buy an IP as there were so many vacant houses at the moment.

Regards

Brian
 
Last edited by a moderator:
Reply: 1.1.2.2
From: Manny B


Hi Bill,

as per most of the above posts, the choice would be dependant on the area you are referring to & where there is greater demand. There are some suburbs I know of that have a strong demand for 2br detached villa units & the vacancy rate is HIGH for 3br houses (too many out there)... so I'd also suggest you speak to the local PMs & find out what the stock level is like out there & stick to what is highly sought after (ie. don't get a 3br if there is a LONG list of vacant properties)... An old-timer agent (that has now retired) always told me to stick to fewer bedroom, as you get fewer people in the house, therefore less wear & tear (although I don't seem to follow these suggestions at all times, as I like to liaise with my local PMs).

Cheers,

MannyB.
 
Last edited by a moderator:
A

Anonymous

Guest
Reply: 1.1.2.2.1
From: Anonymous


Hello everyone,

I'm looking to buy in the inner sydney area. So who are the dedicated property managers here? It's just that to me it seems most rental properties are managed by RE agents, all of whom have a greater interest in selling you something than giving advice from a property manager's point of view.

Cheers

Ethan
 
Last edited by a moderator:
Reply: 1.1.2.2.1.1
From: Simon and Julie M


Hi Bill
4 bed 2 bath houses have given us great capital growth and good cashflow.
3 bed houses with granny flats have also proven to have great cash flow and steady growth.
3 bed en suite units have given great returns as well.
In fact just about everything is good if it is carefully selected with sound criteria in place.
The trick is in the balancing act.
For example
Big houses give good growth but in todays market the rents are lagging making it harder to access the increased equity from the capital gain.(increasing the loan)
On the other hand cheaper rentals are experiencing strong demand and the rents are increasing.(Canberra market)
I believe it to be good practice to diversify your portfolio over a variety of sound property types starting in your own back yard to learn the ropes then start to venture further afield.
Kind regards
Simon
 
Last edited by a moderator:
Reply: 1.1.2.2.1.1.1
From: Bill Lambert


Thanks Brian and Simon for starting the ball rolling.
Geoff,Manny,Seechange, I obviously have'nt been clear enough. Our next IP will be in the burbs of Brissy either north around Strathpine,Bray Park, Petrie or South around Springwood,Shailer Park ,Loganholme. I'm going next week.
However the topic here is about other peoples experiences to help settle a debate between my wife and myself. I'm tending to lean to 4/2 while she is certain that 3 bed is better.
Our current IP is in country Vic, close to where we live, and is 3 bed with enclosed back verandah to make a fourth. The estate agent said to rent for $160, we said no and asked for $175, had 5 applicants on settlement day and went with PM advice on tenant. So far so good.
Our first IP was our PPOR initially that we rented to family in the late 80's. We purchased for $42K in 81 and sold in 90 for $110K. With no mortgage and only receiving $4.5K in rent, 15% on $110K seemed like a no brainer. We could still purchase a similar 3 bed 12sq bv in that area of Mulgrave vic for around $190K.
Sorry for the long post, let's here some good yarns about 3 vs 4 from anywhere.


Bill
 
Last edited by a moderator:
Reply: 1.1.2.2.1.1.1.1
From: See Change


Anon

Look in the local paper and see who has the listings to rent. Ring up and ask for the property manager and explain what info you want. Once you've done that to all the PM's in the area you'll get a pretty good idea of where the truth lies and who to trust.

see change

it's better to be guided by your dreams than your fears
 
Last edited by a moderator:
Top