What Are The Benefits Of An Extra Bedroom?
If one of your goals for 2018 is to purchase property in Sydney, then you’ve probably got a few questions.
For first-home buyers in particular, it’s vital to educate yourself as to which types of houses will offer the best value, both at the point of purchase and further down the track when you decide to sell.
At the top of the list of factors that can have an enormous influence on property value is the number of bedrooms, and it’s vital for buyers to weigh up the pros and cons of spending a little bit more to get an extra one.
Purchasing a property with two bedrooms instead of one will obviously cost more.
The costs of an extra bedroom
First things first, purchasing a property with two bedrooms instead of one, or three instead of two, will obviously cost more. There’s no getting around this, and the jump can be significant. For example, data from Domain reveals that Sydney apartments with two bedrooms cost, on average, 13 per cent more than those with just one bedroom. While this is the average, there can also be quite a bit amount of variation, depending on the area you are looking to buy in. For example, in the central city and eastern suburbs, the difference can be as much as 49 per cent.
For buyers, particularly first-time property purchasers, this can make an extra bedroom too expensive in the highest-demand areas of Sydney. However, it could be worth looking outside the central city, where prices are lower and the increase that comes with a spare room isn’t as difficult to manage.
Of course, spending more money needs to be justified by some significant benefits, so let’s take a closer look at what advantages an extra room can provide.
The advantages of an extra room
The most obvious advantage of investing in a Sydney property with a spare bedroom is that the home will offer greater resale value in the future. This is particularly true for apartments, where lenders have been tightening up on mortgages for smaller properties. In turn, this means less people are able to afford studio and one-bed apartments, limiting the demand and potentially having a negative impact on prices.
One common situation where an extra room can come in handy is couples wanting to start a family.
Just as important as resale value, however, are the lifestyle benefits that come with a spare bedroom. Even for buyers who know they won’t be selling for a long time, these advantages can play a significant part in the decision to spend a little bit more on a slightly bigger property. One common situation where an extra room can come in handy is when couples want to start a family, as Taj Singh from First Home Buyers Australia explained to Domain:
“For couples looking to extend their family, a two-bedroom apartment may allow them to live in the property for longer than if they’d settled on a one-bedder initially,” he said.
A final benefit to consider when purchasing a property with an extra bedroom is the ability that it will provide you to earn an income. This could be through taking on a tenant, but many people are increasingly turning to services such as Airbnb as a way to make extra money while still retaining the flexibility to have the property to themselves whenever they want.
Ultimately, the decision to buy a one, two or three bedroom home will depend on your personal situation. To make sure you know exactly what your options are, get in touch with the team at Laing+Simmons today.