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Renovating house into duel living for rent

Discussion in 'Real Estate' started by judgefudge, 20th Dec, 2009.

  1. judgefudge

    judgefudge New Member

    Joined:
    20th Dec, 2009
    Posts:
    1
    Location:
    Brisbane
    Hi
    I'm a young single first home buyer in Brisbane. I was looking into buying a two story house in a area close to the freeway and shopping centers. The suburb isn't upper class but the prices of the house will allow me to purchase the house alone. My plain was to buy the two story house and renovate the down stairs area into another living space with its own kitchen and bathroom. What i am trying to achieve is a house that is nearly making as much rent as the mortgage i will be paying. I understand the renovating side of the project because i am in construction. What i don't know is any of the rules or pitfalls that go with a project like this.
    Any help would be great

    thanks heeps
     
  2. investor_D

    investor_D Member

    Joined:
    14th Dec, 2009
    Posts:
    8
    Location:
    Brisbane, Queensland
    Hi judgefudge,

    Have you crunched some numbers on your project? That might reveal some answers for you as far as balancing the money you invest, versus the return you will get.

    With regards to getting the most rent from your tenant, you'll want to make sure you include all the features that a tenant will be looking for - things like good privacy, storage, number of bedrooms and bathrooms (e.g. a 2 bed, 2 bath arrangement is quite popular). Look around in your market and see what other properties are for rent, what rent they are attracting, and what features they have. If you want to position your property to receive a similar return, then make sure your inclusions match those of your 'competitors'.

    You might also want to think about your needs as a resident as well. Will you be annoyed by having someone living downstairs? You might want to design your conversion so that having someone living on your property has as little an impact as possible on your normal living arrangement.

    All the best with your project!
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    "Duel" living - is that where your tenants really don't get on? :D

    Seriously, one thing to check is what are the local council requirements about dual occupancies/share housing etc. There may be approvals you need.

    Also your rates bill may be higher as the council may view the property as two residences and charge you up to twice as much...:mad:

    Factor those things into your costs.

    Being in construction you will know the importance of not underestimating construction costs.

    Good luck with it and let us know how you go.

    Cheers
    N