The real estate you own should be sought after and hot on the market, rather than suck more and more profits out of you, until you’re forced to sell it on at the lowest price. So you’ve got to get to know what the market wants; what extensions could you add to your property to get a good return on your original investment?
This is a good way to approach the future of your real estate portfolio. Extensions add a lot of value to a prebuilt property, and if you’re buying to let, or you’re planning to sell on again at a higher price, you should definitely consider one or two of the extensions below for your real estate investment.
A Double Storey Extension
On an average, home extensions have been found to increase the value of a property by 23%. When considering the scope of something as big as a double storey extension, the gains to be had from this added value could be massive for your profits.
Of course, the price tag for a double storey extension can be huge, and thus, require a lot of budgeting on the owner’s size. It’s been reported that a two storey extension could cost up to £76,000, compared to a single storey extension’s price tag of around £23,000. But when charging for a double storey extension, when either selling or renting, the original selling or rental price could go up by at least 5%.
A Loft Conversion
Loft conversions are one of the most lucrative extensions you can add to your property, thanks to how highly valued they are amongst buyers in the market. When it comes to increasing the value of your real estate, the associated price tag could be increased by about £40,000 in the North of England, and upwards of £70,000 in the South.
To get the most out of a loft conversion, make sure you start with the right price – an attic conversion cost at least £21,000 to have your upstairs space turned into an extra, usable room. Of course, loft conversions are also one of the most common extensions to DIY, with an average £10,000 to £15,000 saved when ‘doing it yourself’. A bungalow conversion can cost significantly more, averaging around 40,000.
A Garage Conversion
If your property has a garage space, converting it for the needs of a modern family could add a lot more value to your property. Building one in the first place can add between 5% and 10% of your home’s original value, and converting this new extension can add at least an extra 5% on top. It’s a very worthy expense to fork out for if you’re serious about buying and selling on the current housing market.
That base 5% value that a garage is guaranteed to bring is huge, especially if you’ve spent upwards of £200,000 on the property already. Even just granting someone the space to safely store their car is a huge benefit to your property, and could make it a lot hotter on the market. Not to mention even a self assembly garage, built entirely by your own hands, is only going to cost you something like £1000 to invest in – the cost will go upwards from there, depending on the design and date of your property.
A Bungalow Conversion
Remodelling, renovating, or extending a bungalow to either have more ground floor space or a second storey, is one of the best ways to add a lot more value to your property. Bungalows are very convenient and sought after properties in the first place, so maximising on this factor guarantees a good return investment.
Bungalow conversions themselves are going to cost upwards of £20,000 to begin with, but you have a lot to work with, in terms of converting a bungalow, and it’s why no two bungalow conversion costs are the same. Even simply adding a self catering bungalow extension on the end of a prebuilt house has a lot to offer a family; it’s room for another member, or it could be used as a guest house, and that’s invaluable on the market today.
The Value of Property Extensions
Each of the above could work out for you. Of course, when it comes to adding an extension to your property, ensure you have the right planning permissions. Consider what kind of extension would be of most use to you and your profit margins, and make sure it’s the right time of year to put your property onto the market.