I am fairly new with property renovation strategy, after reading some property investment magazine, thinking to start with a small and basic cosmetic uplift to a house, wondering if I add any additional bedrooms under existing structure, would it helps to increase the value of property? for example building additional two bedrooms at unused ground level (some old houses have lot's of unused space underneath.) what do you suggest? anyone have similar experience ? Thanks.TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
Absolutely – and if its not bedroom I would consider some form of living area or storage area. What is the sqm?
An investor I manage did something quite similar and made a very handy profit (Capital Growth). Make sure its not a DIY and you engage a licensed builder to give you advise re foundation work.
ShahinxdrewParticipant@xdrewJoin Date: 2010Post Count: 479
Some of the best places I have ever renovated upwards in value were 2 bedroom houses in good suburbs with large long blocks of land to work with.
The answer is yes .. you need not only to just plop extra bedrooms on .. but for each 2 extra bedrooms you need to add one toilet and possibly another bathroom (sub in a walk thru ensuite).
However if you add extra space .. make sure you also qualify that with matching living conditions. A four bedroom house with only one single living area up the front still is .. kind of useless to just about everyone. Also a four bedroom house usually demands a larger kitchen space simply because of the catering traffic.
A smart renovator works with the existing floorplan and complements the existing floorplan .. not losing the original character of the pre-renovated state and matching it with extensions that build on top of that.
Remember however this important point. A baubled and gilt plated three bedroom house does not become a palace. It remains a three bedroom house. Estate agents just count bathrooms .. bedrooms and land area. They wont notice if your tiles are imported from Italy, or your gold plated taps came at great expense .. or that the renovations cost you twice what they should have. They will look at the barebones of the existing house .. and assess value based on that.CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
It can increase value if done legally. Make sure it is legal height (the usual downfall) and approved by council.
Not applicable to your situation but- If adding bedroom but taking away from living areas this can actually decrease value.
Thanks for your advice, the house which I have inspected has a good size of ground floor roughly can built two bed rooms underneath with a single garage, your suggestion is good, as it's need to be done properly to get city council approval as well, thanks. Eddie
Yes, I have been told by one of agents, the legal height is 2.4m. Thanks for your advice Catalyst
Your suggestion is very valuable to my research as didn't think of putting of extra amenities under floor which would attract better equity as well, thanks.
EddieCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
I wouldn't take anything an agent says as gospel. Ask council.Matrix 5Participant@matrix-5Join Date: 2012Post Count: 8
As per Catalyst, I recommend getting what you want to do verified by the council or a private building surveyor. No point going through all the pain if it ain't going to be legal.kong71286Participant@kong71286Join Date: 2009Post Count: 261Eddywang55 wrote:I am fairly new with property renovation strategy, after reading some property investment magazine, thinking to start with a small and basic cosmetic uplift to a house, wondering if I add any additional bedrooms under existing structure, would it helps to increase the value of property? for example building additional two bedrooms at unused ground level (some old houses have lot's of unused space underneath.) what do you suggest? anyone have similar experience ? Thanks.
The formula Steve provided in past seminars is:
Property Price = Annual Rent / Yield
- The higher the rent the higher the property price
- The lower the yield the higher the property price
3 bedroom houses are more likely to be in higher demand than 2 bedroom homes, in addition to being rented out for more, so simple answer is 'yes, adding an extra bedroom will increase the price of the house' – but the question to ask, is how much is this going to cost both in terms of time and money, and will it be worth it?
Converting a spare lounge room into a bedroom will be a lot faster and cheaper than building a bedroom from scratch.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
I'm pretty sure you are not allowed to call a room a bedroom unless it has a window to the outside world. Presumably a skylight might be accepted as an alternative. A quick hunt on google finds this;
refer to comment number 23 which says:
"the Building Code of Australia requires bedrooms to have at least ventilation equal to 10% of the floor area and light (glazing) equal to 20%. I think that skylights would give an unsatisfactory feel to the room.
You will need approval from ACTPLA to put in a window otherwise, when you sell, it will show up on the Building Report (which you will have to provide) as being unauthriosed work and give any potential buyer an "in" to chisel the price.
You are probably not selling at present but I thought I;d giveyou the "full version"…..
Also, people dont often realise but unauthorised building work is not insured and is not insurable unless approved….just a thought"mattstaParticipant@mattstaJoin Date: 2011Post Count: 604
Sure, it will increase the price. Plenty of home buyers have families and kids, often more than one. Thus, they will need more than two bedrooms for sure. I would also recommend building additional bathrooms for each bedroom. It will definitely increase the property value.M.InvestigatorMember@m.investigatorJoin Date: 2012Post Count: 134
Generally, any improvements can increase your home's worth. But before spending money. you have to consider your present situation and your budget. How long will you keep or stay in the property? Any immediate plans of selling it.? What's the average selling price of the property in your location. You don't want value of your property beyond the ceiling price. But again, whatever your decision is . See to it that you do your sums and make careful research.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,850M.Investigator wrote:Generally, any improvements can increase your home's worth.
Not true – cost to the seller & value to a purchaser aren’t the same thing.
Improvements must be appropriate to the market eg not too many bedrooms or poorly built extensions actually deter buyers.