Renovating or reconfiguring your home to add an extra bedroom or granny flat is often a good way to boost the value of your property.
But, it depends on how you do it.
If your property has a large footprint you’ve got more leeway when it comes to adding an additional bedroom.
If done properly, an extra bedroom can achieve a significantly higher profit when it comes time to sell.
But if you add another bedroom by taking from a normal-sized living room, you’re not going to increase the value of the property, and in some cases it will even lower it.
You need to study your property layout to see where another room could go that won’t impact on your living space.
Look for smaller areas you can reclaim to make a larger space – such as consolidating a separate laundry and bathroom into a bathroom with a washer/dryer.
Do you really need a separate dining room? You could turn this into a bedroom and create an open plan living/dining area.
I changed a two bedroom, one bathroom property into a three bedroom, two bathroom property simply by reconfiguring a poor floor plan layout – with nothing structural changed in the process.
I moved the kitchen into the very large open plan dining/lounge area to make use of a lot of wasted space. The old kitchen was then turned into a bedroom.
The bathroom at this property was huge and incorporated the laundry. I was able to reconfigure the bathroom (which backed onto the master bedroom) and make it smaller in order to add an ensuite to the master bedroom.
The total cost of these changes was only $25,000 but the value it added to the property was much more.
I assisted one of our clients to buy a two bedroom duplex pair, each with an internal garage with internal access to the property.
In both duplexes, we changed the garages into bedrooms then rebuilt the garage outside for car accommodation.
Both projects dramatically increased the rental return on these properties and the equity value – approximately $80,000 on bank valuation.
You need to think outside the box to create that additional room without compromising on the space.
Adding a granny flat
When it comes to a granny flat, you need to weigh up the value you’ll be adding versus what you might sacrifice in space AND money.
Viability comes down to cost and final outcome.
Determine if it’s practical to have two separate tenancies. Some dual living homes only lend themselves to an extended family situation.
But if a self-contained granny flat is practical, you will gain an additional income source and will be squeezing the maximum cash flow from one block of land.
Adding a granny flat should underpin a higher capital value than a single standard home because of the additional dwelling and the cash flow it creates.
If you’d like some guidance around the options you have to increase the profit on your property, get in touch. Simply call 1800 600 890 or email firstname.lastname@example.org to book in a complimentary consultation.