The assumption is that any style of extension will automatically add value to your home. But there are times when this isn’t the case. How do you get a home extension right that will add value and function to your home?
Adding an extension to your home should add function, as well as value. You want the project to offer you what you need but you need to think of the extension as a long-term investment in your property too. Some extensions are more complex than others, for example, a basement renovation that requires steel reinforcement solutions, should yield more on your initial investment than a simple one storey extension.
Here’s how to get the best return on your home’s value with an extension.
Build cost vs. value-added
There are two reasons to add an extension to a property – to give you more space and to add value to the property so when you come to sell up and move on, you leave with a tidy profit.
In the long term, the value will be bolstered by market conditions but if you plan on moving within a year or two of extending or renovating a property, you’ll need to keep the build cost vs. value-added equation in sight.
Adding an extension that costs thousands should yield the same back if not a little more in the short term. And that means asking a few key questions before you start the build.
Why are you extending your home?
Is it a case of needing more living space or adding an extra bedroom? Is it about storage or lack of?
Adding a bedroom can add 10% to the value of your property and extending the living space around about the same. If the extension is the living area, you need to make sure the area flows between one room and another. Again, it can add a welcome 6 to 10% onto the value of a property.
Are you pricing your property out of the neighborhood?
Overreaching with an extension means that you are spending money on a property which you won’t get back when you come to sell. This is because you have priced yourself out of the neighborhood. You have to bear in mind the value of the properties in your area and what’s the maximum price you could get for your property when you come to sell.
Are you extending in the right way?
You may want a large living area, but would your money be better spent on refitting the kitchen and making it into a family kitchen-diner? Would you be better to realize the value in your property by converting the cellar?
If you want to maximize the return on investment when it comes to extending your property, you need to determine what the property needs to make it a more functional and practical space for people to live.
Have you considered the impact of the extension on the rest of the property?
It may be a wonderful extension that allows even more room for your family to live and play but if it has a negative effect on the flow of life in the rest of the property, your extension is not doing its job.
Have you considered all possibilities?
From renovating the loft to digging down into the basement, many renovation ideas can improve your home and how you live in it. Adding an extension onto the side or rear of your property may not be needed if you have space within your home ripe for renovation. Although with planning permissions relaxed on many types of extension, you may find that now is the time to go big with an extension that will truly add value to your home.
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