Does an extra bedroom in a home always add significant resale value to your property? Well, not always.
According to REINZ data, you may win in most areas when adding that extra room. In others, however, the average asking price can decrease with the addition of an extra room.
In this blog, we explore how to go about deciding whether it may be worthwhile going down this path and look into ideas of what this type of renovation could cost as well as what the resale value could equate to
Once a house reaches the four-bedroom mark, it is not only advisable but seems to be an expectation, to have two bathrooms. If adding another bedroom means also needing to add another bathroom, the renovation price could start to get quite costly.
- On average, adding a bedroom or living room puts a property in a whole new search bracket. It opens it up to expanding families who have more income, looking for an extra bedroom or living.
- As stated in this Stuff article, construction cost consultants estimated about a 50% return on renovations such as kitchens and bathrooms. While for every dollar you spend converting a three-bedroom home into a four-bedroom one, you're likely to double your money.
- Know your market before you decide to renovate. See what others are doing by checking recent sales on QV.co.nz, or visit some open homes (check Propertybrokers.co.nz to see the latest listings in your area).
- Per square metre, the average price for a Kiwi renovation is around $2,200, plus or minus 10%.
- Most new rooms will equate to being at least 10sqm, so the overall renovation costs could be anywhere from $22,000 to $37,000.
- Before spending this amount of money, be sure to do your research and make sure the investment is worthwhile, will add value to the home and appeal to potential buyers.
Different ways to add an extra bedroom:
- A simple option for adding an extra bedroom is breaking up existing rooms. This option usually requires no planning permission and is great if your home currently has large rooms which are not necessary.
- An extra bedroom could possibly be built into the garage. Depending on the layout of your home, roof windows and skylights can be installed instead of vertical windows to provide more privacy.
- When adding a room into the garage, there will need to be fireproofing, ventilation, insulation and structural support which could be quite costly, but if the garage already includes these aspects, adding a liveable room can be a worthwhile investment.
- If you are willing to spend a little more, adding an extension is a great way to increase space and leave the rest of the house unchanged.
With so many factors involved in the renovation of a property, it's really important that you do your research around what properties are selling for in your area before embarking on your journey.