Boost Your Property Value: Is an Extension Worth It?

Adding an extension to your home is one of the most effective ways to increase its value and appeal, especially in a competitive property market. Whether you’re planning to stay long-term or preparing to sell, extending your home can offer significant benefits. But is it the right choice for you?

The Value of Adding Bedrooms and Bathrooms

If your home has three bedrooms and one bathroom, adding an extra bedroom and/or bathroom can significantly boost your property’s value. Families and buyers often prioritise additional space and amenities, making these extensions particularly attractive.

On average, the cost of adding a bedroom and bathroom is around $60,000. While this might seem like a significant investment, the added value to your home could outweigh the initial expense, particularly in areas with high demand for family homes.

Should You Extend to Sell?

If you’re thinking of selling, it’s worth weighing up whether the cost and effort of an extension will provide a good return on investment. Extensions that cater to the most common buyer needs in your area - such as more living space or additional bathrooms—are more likely to pay off. However, if you’re on a tight timeline or your local market doesn’t demand larger homes, it might not be worth the expense.

It’s a good idea to speak with your real estate agent to assess whether an extension aligns with your goals and your home’s market potential.

Financing Your Extension

If you’re worried about how to fund your renovation, you may be able to access equity in your current property to secure a "renovation loan." This option allows you to finance the project without dipping into savings. If you missed our article on refinancing and using equity, we encourage you to revisit it for helpful insights.

Other Considerations

Before diving into an extension project, consider the following:

• Council Approvals: Ensure your plans meet local regulations.
• Builder Selection: Choose a reputable builder with experience in similar projects.
• Design and Layout: Think about how the extension will flow with your existing home.
• Timing: Major renovations can disrupt daily life, so plan for convenience.

Extensions can be a fantastic way to enhance your property’s value, but the decision to undertake one depends on your financial situation, goals, and market conditions. Whether you’re planning to stay or sell, it’s always wise to seek professional advice before starting your project.

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