Making the most of your investment
The popularity of television shows such as The Block and Selling Houses Australia has inspired many ...
The popularity of television shows such as The Block and Selling Houses Australia has inspired many of us to consider how we can improve our own properties, especially those we hold as investments.
If you really want to improve your rental yield, add another bedroom.
Of course, the ability to add another bedroom depends on the structural integrity of your property and the position of the home within the rest of your block and its features, such as the garage or pool.
Generally speaking, the more you can offer an additional tenant – bedroom plus bathroom plus kitchenette plus lounge/dining, for example – the greater the increase in your income stream from that property will be.
There is an array of opportunities to find that added bedroom:
- Subject to local council approvals, you may be able to convert the existing garage into a self-contained living space. This is often a good option if there is reliable public transport nearby your investment;
- There may be enough space in the rear of your yard for an added-on living space, or perhaps a detached granny flat;
- Do what the Queenslanders do and raise your home and build-in the lower level;
- Introduce a wall to separate living quarters or under-utilised space, enabling another bedroom.
Although entire rooms can be transformed in a few hours of television, we all know this is not possible in reality. Extensions to homes and interior reconfigurations are major activities which require the employment of professionals.
Before undertaking any amendments to your home, make sure you get guidance from building experts: building designers, builders, electricians and other trades. Of course, you also need to heed your local council regulations.