From 3 to 2 bedrooms. Your thoughts?

d@n · Apr 22, 2009 1:08 pm

There's a place up for sale that is on a small block. It currently has 3 beds and no backyard. All the bedrooms are at the back of property. The place needs a reno and I was thinking (if I bought it) of turning it into a 2 bed (moved to the front of the house) and knocking down the back to create some backyard and outdoor decking. So my question is, would you consider it better to have to 2 beds + backyard or 3 beds and no backyard?

gweluphome · Apr 22, 2009 1:40 pm

Hey D@n, tricky but I think its worth looking at how much the difference is between the price going for a 2 and the price for a 3 bed in the area. Then you will be able to tell wheather its worth taking the bedroom away.
I would go to some homeopens of bothe in your area and consider what you are going to have to spend on the reno and what you are going to get in return.
Personally I would find it easier to sell or rent out a 3 bed over a 2 and I would consider what you can do about any front yard and create your back yard out the front if possible....Using some creative fencing and gates you can sometimes do this with minimal cost and it can up grade the facade for resale. I could be completely off target as I don't know how the house is layed out but its alot of work to take a room away that would probably a big part of the value.
Let us know what you decide.

karol · Apr 22, 2009 2:43 pm

Hrm. Definitely look at other houses in the area. 3 bedders tend to achieve a better return from what I've seen on my hunt for an investment property. Also consider who tends to rent in the area - if it's families, taking away the bedroom may actually take away all your possible tenants?

Having actually lived in a 2 bedroom before, this is ok to live in provided that the living spaces are a decent size. If you're going to be drastically reducing the indoor living space by taking away the room, I probably wouldn't do it.

d@n · Apr 22, 2009 4:12 pm

It's a mixture of people. From singles in units, to couples in semi's all the way to families in mcMansions. Living space would be about the same. The other option would be to add a 2nd level, but i'm guessing that would really cost.

Southies · Apr 22, 2009 4:24 pm

I'd forego the 3rd bedroom & focus on improving the lifestyle aspect of the house.
Afterall, what's the point of having a 3 bedroom house which will mean kids living there but no yard for them to play in.

Go the 2 bedder with great living space & the place will be just right for young couples or retirees or young families starting out.

ozkarnak · Apr 22, 2009 5:15 pm

To make it a 2 bedroom puts it into the "Unit / townhouse" catagory" which generally comands less resale, on saying that though a snazzy 2 bedroom can outsell a crummy 3 bedroom so it depends on how it's done.

On a side point though - generally the people who want bigger backyards are families who generally want 3 bedroom's. Most retired couples or singles aren't looking for places with kids to run around in though are looking for decent entertaining spaces.

Just my two cents worth

EDIT: From my personal experience tenants actually shy away from large backyards due to the maintenance aspect. I actually got much more interest in one of my properties by reducing the backyard area (renting it out as yardspace to a neighbouring house) and making a smaller garden area.

d@n · Apr 22, 2009 5:20 pm

Southies

Go the 2 bedder with great living space & the place will be just right for young couples or retirees or young families starting out.

That's my thinking...

ozkarnak

generally the people who want bigger backyards are families who generally want 3 bedroom's.

Not always. I just like outdoor space. It's nice to get outside and sit in the sunshine while reading/eating/drinking etc. Courtyards don't do it for me. Too small and cramped feeling.

Renosmakemeweary · Apr 23, 2009 12:42 pm

My initial thoughts are "big mistake".... You would lose approx. 10% of the property value immediately if you remove a bedroom I reckon... Compound that with the cost of the job then you are in a hole. To get out of that hole the outdoor area would need to be truly amazing to get that value back.

Is there a possibility of turning the 3rd bedroom into an alfresco "pavilion" type structure? Then you have the benefit of an outdoor living area that can be converted to a 3rd bedroom if the next person wants the bedroom. :z:

Southies · Apr 23, 2009 12:51 pm

Renosmakemeweary

To get out of that hole the outdoor area would need to be truly amazing to get that value back.

Agree totally on this point. It would need to be upmarket to make it stand out from the rest, in your area.

d@n · Apr 23, 2009 2:33 pm

Interesting thoughts. Seems bedrooms rule.
2 beds would leave a backyard space of 10 x 10 metres approx. Adding a 3rd bed would cut into that space.

What do you define as "truly amazing"?

Becster · Apr 23, 2009 3:38 pm

I think the problem is your market isnt even going to see the "amazing" backyard which makes up for the lack of a 3rd bedroom, as people tend to have the bedroom count as one of the key factors in their search, ie if people are unsure they are much less likely to even consider a house with less bedrooms than they ideally want in favour of a bigger yard.
And I agree that yards = maintenance which is a turnoff for potential tenants.