- Posted By Prince Lakshman
Australian homeowners are well aware of the fact that the more rooms you have in your house, the more your property will increase in value. The question is, by how much value does one bedroom add exactly?
This information is crucial to know if you are planning to sell your house in the future and want to add more to the potential sale price.
Generally, for homes that are valued between $500,000 and $1 million, an extra bedroom can add around $50,000 to $80,000 to the selling price.
However, adding a bedroom requires a strategy wherein you need to weigh the added sale price with the cost of construction.
Adding another bedroom can cost between $50,000 and $100,000, according to Cathy Morrissey of The Reno Chick.
Roughly, build costs around $1200-$1700 per sqm for a home extension. Other factors such as the level of construction -- whether your property is timber or brick-- can also affect the cost.
Creating another level on top of your home can also slash your funds by $2000-$3000 per sqm. There’s also the issue of following council regulations and paying permit costs.
So should you add another bedroom?
The answer may not always be yes, especially if your home is small and already has many bedrooms. It simply won’t work.
If you have a large house with few bedrooms and spacious living space, adding another room can be a brilliant idea. Having a spacious home with three to four bedrooms is always going to be worth more.
Another way you can add value to your home is by adding a granny flat. This is a creative alternative if you do have a smaller house, but have extra land to spare. It is as valuable as adding an extra bedroom to your house, especially that it’s a self-contained flat within your property.