Good afternoon valued members!
One area I am very interested in at the moment – considering it seems as though everyone wants to live in a mcmansion – is adding a second story onto an existing house.
I am wanting to know if anybody is doing this and making a profit?
Is there much paperwork involved and what is required with local councils etc?
I have read in reno articles that most people spend around $100k on adding a second story. From some basic research I believe that buying an ok house in a “blue chip” suburb and spending an extra 100k on it you would be able to sell or have equity more than the total you have spent.
What are thoughts, opinions or experiences in this field?
Much appreciated
Young, aspiring baby Trump [strum]
Do it your way.
Think about the baby boomers in some years time. A two-story house won’t appeal to them as they will not like stairs.
The market is ageing and 2story houses are not very friendly to old people, they tend to steer clear. Thats just a thought for you to ponder over.I don’t know about equity wise how the reno would perform.
Blow the baby boomers, they are a different market. They will want small blocks and flat land and single storey houses.
Define your market – it is second or third home buyers with a young family who want a “presentation house” with a backyard. I personally think it would be a great money spinner and have considered doing it myself. Most of the people with the money to buy these houses do not even possess a screwdriver let alone think of doing up a house and they just want it all done and move in.
Has to be a prestige suburb. Research how much single storey unrenovated ones against the two storey job and work out the profit difference. Downside is interest at the bank (rent will not offset it and the time taken to get plans through council and then build (with no rent coming in) Interest (let alone stamp duty) is the biggest destroyer for profitFern
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