3 bed showhouse vs 4 bed mid tce

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purplealien

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Hi - myself and my husband are looking to invest in a second house to rent out. In the area we are looking at we have a choice of a three bed end of terrace showhouse - all furnishings etc. included for 330,000 euro or there is a 4 bed mid terrace on sale for 310,000. It might sound stupid, but i really cant decide which one to go for. Any help would be much appreciated.
Thanks
 
1. You are paying a premium because of the title "showhouse" and for the extra cost of interior designing and kitting it out. You must compare the price to other 3 bed (non showhouse) end of terrace properties and see just what this premium is. The fact it has been kitted out very nicely may not get you much extra rent and the furnishings I expect will be far too lavish for a rental property. Remember you are not buying for your self, this is an investment, so you are looking to maximise your profits. Only basic furnishings are required.

2. You should get more rent for a 4 bed than a 3 bed and and capital appreciation may be more (even though the 3 bed is end of terrace and decorated well)
In my eyes there is only one option....buy whats going to please your bank balance, not whats going to please your eye !!!
good luck !!!
 
Check out the other 3 bed end of terrace prices, if it were me I would go for the 3 bed - walk in condition so nothing to do to prep for tenants. Also smaller groups of people renting the house from you in 3 bed than 4 bed! Would personally prefer smaller number of people living there...

But appreciation of property, the 4 bed may be worth it in the long run. Have you checked what 3 and 4 beds usually rent for in the area? this may be a factor in your decision.
 
You might also ask yourself what kind of tenants you'd like for the house? A group of individuals or a family? How big is the 4th bedroom....are you likely to get that room let out if it's not for a family.
I'd be inclined to consider the advice above beofre deciding.
 
We recently did up our family home and got new furniture for it so if i do take the four bed, i have a single bed,a dining room table and chairs, a tv, a coffee table and a two seater couch and two chairs for the living room. So i have most of the furniture. The kitchen comes with the house so all i need to buy is appliances, beds, wardrobes, tiling, floors and carpets. Would you have any idea how much all this would come to? The tiling and floors is the most expensive and i'll want to put good solid floors in so that they'll keep - i don't think laminate would be very durable in a rented property. But as i go through it all, i'm wondering if it's worth all the hassle when there's a house around the corner that's fully kitted out.
 
once again, solid wooden flooring is expensive and not suitable for a rented place, I have seen a few friends wooden floors destroyed by ladies stiletto type shoes, with small holes everywhere. In actual fact laminate floors are much tougher in this respect and cheaper. If you say you have most of the furniture already then this and what I have said above is another reason to go for the 4 bed. You are paying 20,000 more for the three bed !!!! You could easily decorate the 4 bed probably to the same standard as the three bed for a lot less than 20,000.
You must also consider rental yield , effectively this is the amount you receive in rent compared to the purchase cost or mortgage. With the three bed the rent will probably be lower and the mortgage higher, so every month you will be making less profit......or perhaps even worse more loss !!!!
 
Thanks for the advice landlord, i think you're right, the four bed is the better option. All i need now is some money!:D
 
in terms of re-sale though, the end of terrace property may be more attractive to the next purchaser....if potential purchasers are owner occupiers, you may have a larger target market, just a thought
 
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