Why You Should Add a Room to Your Property...

Why add a room to your investment property?

Well for starters… In many areas across Australia adding a room can significantly improve a property's value. If you’ve read the post '' (over at our website www.peakpropertygroup.com.au) then you’ll also know it’s a profitable way to generate cash flow.

The key thing to know is how to do it properly.

If done right, it can potentially increase the valuation of the house. For example, an existing three bedroom home is valued at $350,000. However, four bedroom homes in the area are selling in excess of $400,000, the potential uplift could be a minimum of $50,000.

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So, what are the key things to remember in adding a room to an investment property?

1. Engage a building surveyor to inquire about whether a building permit will need to be obtained.This is one of the most important steps you need to follow before building an extra room. Knowing whether a building permit is necessary and understanding the building control process ensures the safety of everyone involved.

2. Contract a draftsperson to draw up a simple floor plan. This is important to get a clear view of the property. By having a floor plan designed, you can visualize how the room will turn out and even visualize the furniture layout.

3. Request three or four quotes from builders or subcontractors. Don’t feel bad about asking quotes from different builders or subcontractors. This will ensure that you will be getting the best service for your money and of course, it is imperative that you get everything in writing. You will have an idea of the budget and also compare their pricing. It is not always necessary to pick the builder with the cheapest quote. You also need to consider their experience and reputation so choose wisely.

Don’t forget to show your ideas and your floor plan to local agents. Real Estate Agents can be the best people to talk to about possible end values and can also provide you with recent comparable sales.

If you plan to do so, make sure you do it right. Concentrate your efforts on how to make your home or investment property more appealing to buyers.

If you would like to learn more on this topic, here are some websites that I recommend for you:

www.moneycrashers.com/7-home-improvements-to-increase-its-value/

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