Over the last couple of years, we’ve all spent a lot more time than normal at home, which made many of us realise we need a bit more space. Buying a bigger house isn’t always an option, but extending your current home might be the perfect solution.
Before you extend, though, it’s a good idea to make sure you’re not over-capitalising (spending more on the renovation that you’ll get back in increased property value). Some renovations boost your property value more than others. Here’s a list of those that are most likely to give you the best return.
Extra bedroom
Adding an extra bedroom is one of the easiest ways to add value to your property, as it immediately puts your home into a new bracket and can accommodate larger families. According to research by data firm Corelogic, going from three to four bedrooms could add a minimum of $125,000 to your home’s value, and up to as much as $350,000 in Auckland, where house prices are higher.
Bigger kitchen
Gone are the days of small kitchens and separate dining rooms. Today, people tend to favour open-plan living and dining spaces, so a kitchen extension can go a long way to making your home more desirable. Data out of Australia states that a new kitchen could increase the value of a property by $50,000 to $60,000. The amount of value you add does depend somewhat on the size of your original kitchen. If it was small, you’ll get a much better return on investment than extending one that was already a good size.
Deck
Building a deck to create indoor-outdoor flow is a great way to add extra living space without spending a fortune. Research suggests that you can increase your home’s value by up to 30%, depending on the size of the deck and the quality of the materials and finish. While building a deck might be easier than adding an extra room to your house, don’t forget that you will still need to seek building consent if your deck is over 1.5 metres high.
Living area
According to property experts, adding an extra living area can add around 10% to your home’s value, as long as the new room is a reasonable size.
How much value will an extension add to my home?
In every instance, it’s important to set your renovation budget below that of the expected property value increase. To calculate this, ask a real estate agent to estimate your property value as it is, and what they would expect it to be with the planned extension. Then chat to your builder or architect to work out if you can achieve what you want without exceeding the difference in value.
If you book a discovery meeting with us, we can discuss your ideas and give you a ballpark figure for your project. With over 15 years’ experience in residential construction, we’ve got plenty of great suggestions to help bring your dream extension to life.
Build Right Contactors is a family-operated business serving the Greater Auckland Region
We have more than 15 years of experience completing building projects. We cover a wide area of Central Auckland, East Auckland and South Auckland. No matter what type of residential or commercial building project you have in mind, we have the knowledge and expertise to make it a reality. From new homes, house extensions and renovations to significant upgrades to Daycare Centre and Community Projects, we offer a full range of building services.