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How important is bedroom number for investment?

How important is bedroom number for investment?

By Rich Harvey, CEO, propertybuyer.com.au

Whether you're buying detached houses or apartments, the number of bedrooms a property boasts is an important part of Australian property investment.

Bigger is better?

Some experts would say the more the merrier when it comes to bedrooms. This makes sense, as it does widen the pool of potential tenants for you to choose from. After all, a one-bedroom home will really only attract singles and couples.

On the other hand, a two- or three-bedroom property has the potential to house singles seeking extra space, couples planning to start a family and groups of roommates.

Also, while a bigger house could be more expensive to purchase, it also offers the potential of greater rental yields.

At the same time, Australia's property landscape is changing - the question is whether you can keep up.

Bright future for one-bedrooms

Say you're looking to buy investment property in Sydney. Chances are surging home values have priced plenty of consumers out of detached home market, as well as the two- and three-bedroom sector. 

For many Sydney-siders, one-bedrooms are becoming not only increasingly appealing, but necessary.

Not only are one-bedroom homes a more affordable option for investors, they're more budget-friendly for home seekers, as well.

Also, the inner-city lifestyle is becoming more and more popular, especially as demographics change.

Data from the Australian Bureau of Statistics shows that the fastest growing household type is that of lone person households. This demographic is forecast to grow 2.2 per cent each year, rising from 1.9 million in 2006 to 3.2 million in 2031.

Additionally, couples-only households are set to overtake couples with children, representing 60 per cent of couple relationships by 2031.

For potential property investors, the decision between one-bedroom homes and multiple bedroom properties should take a back seat to focusing on location and surrounding amenities. Depending on the area, the types of renters and buyers will dictate which choice makes the most sense.

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