Hi guys,
I am building my first house through Burbank in Wallan, Victoria
I am playing with the idea of adding an alfresco area to the contract, for roughly $10,000
the alfresco area is 4.1m X 5.6m to the rear of the house
now, im wondering, if this will add more value to my house than the initial $10,000 to build?
what do you guys think?
the house will be my PPOR for a few years, but after that it will become an IP
so i guess it will be more appealing to tenants, and can charge more rent with it?
my current house & land has been valued by valuers (by the bank) at $300,000, do you think with the alfresco area it will be valued at $310,000 so alfresco just covers itself?
or will it give me more equity because the new value of my house will come in at $320,000 or somthing?
i have no idea so appreciate any comments positive or negative.
thanks
josh
Hi Joshua,
If going for an alfresco area, some designs are much better than others.
The best that I have seen have bifold doors which open up on both sides and tend to come off the kitchen, creating real indoor outdoor flow.
My favourite one that I plan to include in my dream house when I buiild it, has the bifolds on the exterior walls of the building and tiled floors, with a casual dining area. It allows you to still use the area when it is wet and cold for dining in, but also gives the same look and feel when you open it up and a fantastic indoor outdoor flow. Even if it costs an extra $5k to do this (on top of the $10k), it gives your house real wow factor and would easily pay for itself. I can send you photos if you want of this.
Don’t expect to be able to unlock any equity early however. Initially the bank will only value for what you pay, no higher.
As a building designer, are you doing this as an owner builder? How much are you paying per sqm for the total build cost?
You could offer to rent out a bbq as an extra and it also allows smokers to smoke outside your house if renting it.
If you have difficulty in deciding or choosing the suggestions. The only thing that would help you is your instinct, try to listen to your instincts.
"If everything else fail, Trust no one but yourself" Trust you instincts!
accompany it with prayers.
Good luck!
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