Browse Forums Building A New House Re: Which upgrades decrease new home value? 3Mar 13, 2017 1:45 pm The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Which upgrades decrease new home value? 4Mar 13, 2017 5:31 pm Pool adds no value as plenty won't buy with a pool, size counts also as one of agents or valuers first question is, how big is it. Quality of build, custom or volume, facade important also, ask your local agents for specific area advise. Re: Which upgrades decrease new home value? 5Mar 13, 2017 8:50 pm Agree with bashworth. Irrespective of how nice your house is, potential buyers won't pay anymore than similar house in your area. Bank will value based on that. Factors in valuation is number of bedrooms, bathroom, garage, appliance (ac, stove, dishwasher), backyard, pool. Your polyutherine cabinet is valued at the same price as laminate. Don't build higher than average price of your neighbourhood as you can't recover your cost until thee average price of your neighbourhood exceed your cost. NabeelC | Metricon Merricks 38 | Queensland http://forum.homeone.com.au/viewtopic.php?f=31&t=86276 NabeelC | Metricon Merricks 38 | https://forum.homeone.com.au/viewtopic.php?f=31&t=86276 Re: Which upgrades decrease new home value? 6Mar 14, 2017 1:24 pm bashworth Rather than look at individual items find out what the average sale price of a property in your area is. Anything that takes you over that price is unlikely to add significantly to the valuation. Some upgrades may make it easier to sell in the future, such as a nice kitchen and solar panels without adding much to the value, Some things may detract from the value: A swimming pool may reduce the size of the garden and there are as many people who don't want a pool as those that do want a pool. Schofields is a new suburb, new houses mostly getting build cheaply on small lots. Most of the newly builts for 4-5 bedroom houses are 28 sq size on 330/375m2 lands, selling for 8500/900k on house and land package. Our block is 470m2 and the total cost will be 1050000 without pool and 1.1m with pool. Cost of the facade, voids, staircase involves 40k included here. I am more worried about bank valuation. Does bank take sizes of land, sq size of the house, size of backyard into count? Schofields is a new suburb, new houses mostly getting build cheaply. most of the newly builts for 5 bedroom houses are on 350/375m2 lands, selling for 890/900k on house and land package. Our block is 470m2 and the total price is 1.05m with the facade, voids, staircase. I think we will have trouble with home valuation for loan purpose. We will have 32-33 sq home with 10m x 12.5 backyard. When we started planning, we did not look into bank valuation issue, we wanted a larger block for spacious backyard as the house is mainly for living. Now the fact that most of the lot sizes and the houses are small around the area, bank valuation will surely be an issue Re: Which upgrades decrease new home value? 7Mar 14, 2017 1:35 pm Nabeelc Agree with bashworth. Irrespective of how nice your house is, potential buyers won't pay anymore than similar house in your area. Bank will value based on that. Factors in valuation is number of bedrooms, bathroom, garage, appliance (ac, stove, dishwasher), backyard, pool. Your polyutherine cabinet is valued at the same price as laminate. Don't build higher than average price of your neighbourhood as you can't recover your cost until thee average price of your neighbourhood exceed your cost. NabeelC | Metricon Merricks 38 | Queensland https://forum.homeone.com.au/viewtopic.php?f=31&t=86276 Thanks Nabeelc for your advise. Its a tough situation. its a new suburb and only house and land packeges are being sold in this area. mostly under 900k, 1/3rd smaller house size and land size. Will bank take into count that our bigger land size, larger house floor area, spacious backyard etc causing it 150000k extra from median price? The next door suburb is Ponds, which is 1.5 to 2km from our boundary. Thats an established suburb with median house price alreay 990k for small sized 5 bedroom house. Houses being sold of my size and finish are sold for over 1.25m. Similar size and pools are sold over 1.3m. But I doubt that Bank will count the median house price of next suburb which is 2km away!!! Hoping the value of land will increase next year when the land registers. We are 1.5km from the new norwest train station which will have direct train to the city every 4 mins and connects with Epping, the business hub. Schofields station is 2.5km away. Only hoping that the land price will increase further when the houses are already build in the area before ours register. and new train station opens. But I know its a risk and thinks can go the opposite way too and bank valuation can come lower Re: Which upgrades decrease new home value? 8Mar 14, 2017 1:35 pm Nabeelc Agree with bashworth. Irrespective of how nice your house is, potential buyers won't pay anymore than similar house in your area. Bank will value based on that. Factors in valuation is number of bedrooms, bathroom, garage, appliance (ac, stove, dishwasher), backyard, pool. Your polyutherine cabinet is valued at the same price as laminate. Don't build higher than average price of your neighbourhood as you can't recover your cost until thee average price of your neighbourhood exceed your cost. NabeelC | Metricon Merricks 38 | Queensland https://forum.homeone.com.au/viewtopic.php?f=31&t=86276 Thanks Nabeelc for your advise. Its a tough situation. its a new suburb and only house and land packeges are being sold in this area. mostly under 900k, 1/3rd smaller house size and land size. Will bank take into count that our bigger land size, larger house floor area, spacious backyard etc causing it 150000k extra from median price? The next door suburb is Ponds, which is 1.5 to 2km from our boundary. Thats an established suburb with median house price alreay 990k for small sized 5 bedroom house. Houses being sold of my size and finish are sold for over 1.25m. Similar size and pools are sold over 1.3m. But I doubt that Bank will count the median house price of next suburb which is 2km away!!! Hoping the value of land will increase next year when the land registers. We are 1.5km from the new norwest train station which will have direct train to the city every 4 mins and connects with Epping, the business hub. Schofields station is 2.5km away. Only hoping that the land price will increase further when the houses are already build in the area before ours register. and new train station opens. But I know its a risk and thinks can go the opposite way too and bank valuation can come lower Re: Which upgrades decrease new home value? 9Mar 14, 2017 1:37 pm Joker Pool adds no value as plenty won't buy with a pool, size counts also as one of agents or valuers first question is, how big is it. Quality of build, custom or volume, facade important also, ask your local agents for specific area advise. Hi Joker, thanks for the info. I am assuming the bank will not consider the pool value in their valuation when we look for loan? So we will have to fund the gap from pocket in case bank valuation comes lower (which I assume will be the case ) !!! Re: Which upgrades decrease new home value? 10Mar 14, 2017 7:01 pm Write reply... faykis Joker Pool adds no value as plenty won't buy with a pool, size counts also as one of agents or valuers first question is, how big is it. Quality of build, custom or volume, facade important also, ask your local agents for specific area advise. Hi Joker, thanks for the info. I am assuming the bank will not consider the pool value in their valuation when we look for loan? So we will have to fund the gap from pocket in case bank valuation comes lower (which I assume will be the case ) !!! If your property under values. I believe they will give you an option to take out mortgage insurance. Re: Which upgrades decrease new home value? 11Mar 15, 2017 12:10 pm We are building a 5 bedroom, double storey house on one of the biggest blocks in our subdivision and putting in a pool...all of those things increase value. You may not get all money back on the pool but it doesn't decease the value, just limits the market a little, especially if you still have a family friendly yard then I wouldn't worry. The staircase will give a wow factor. Insulation won't increase value as no one knows it's there, but you need to consider your own comfort as well. Make sure you have enough openable windows if putting in feature windows as some people don't like closing the house up for aircon, preferring airflow. The big picture windows look lovely but aren't really practical...but we all have different wants, that's the reason we build so we can customise Nothing on your list seems elaborate to me. Do you need privacy locks on all bedrooms? We don't have any. Would be a nightmare with young children. Building Monte Carlo 40- Wisdom homes Re: Which upgrades decrease new home value? 13Mar 16, 2017 5:12 pm Hi the privacy lock comes in the upgrade package. If we take them out it wont cost us any less. Yes i am not worrying about selling price for selling the house as we want to live in it for years to come unless there is an accident in life. Just worried about bank valuation for the loan purpose. People telling me that bank valuation will come way lower as they dont count on these upgrades and we will have to fund the gap from pocket! Thats a big concern actually! Re: Which upgrades decrease new home value? 15Mar 16, 2017 9:13 pm It's not really that they don't value the extras, it's more that they are valuing the property extremely conservatively so their risk is less, definitely going to a broker will get u there in the end. The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4778 Having just completed our first/only build and we spent so much money on insulation and double glazing upgrades - do not skimp on insulation including upgrade to anticon… 1 2900 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 28233 |