Currently own a three bedroom home, one living area, 360m2 block (built in 2018/19). We have been considering building a second story, which would turn the house into a four bedroom home, with a small study and a second living area. Have been quoted 170k. House as it currently stands is valued at 430k.
If we go ahead with this are we risking overcapitalising? Should we just look at building a whole new house?
Obviously now is the time to make the decision with the current grant!
Renovate?
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Whether you are overcapitalizing generally depends on the area you are in and property values around you
Another way to look at it is if you put in $170k onto your $430k and get 10 greats years of liveability and the house is only worth $550k at the end of the 10 year period. Then is the capital costing component vs the change in your liveability standard that much of a gap?
One thing I would say if you have the means to do so - do it now.
If it is long term who knows what house pricing will look like in the next 10 years or so.
Who knows what anything will look like 10 years from now except bad.
jezzarose, your most important consideration on which to base decisions is long term job security.
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26/08/2023
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the step up is 30mm and wanting it to be flat . how much does the concrete have to be lowered .we plan on removing bath and lenghten shower and adding seat. the old bath…
10/01/2024
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if the original house is in good condition most of what you listed could be added in stages without the need for KDR and costs and disruption of having to live elsewhere…