A home extension is a great way to expand your Perth home without overcapitalising it. Housing is a lifelong battle for some families; a series of choices between “how much house” they can afford and how much living space they need. For those who need a larger living area, a home extension is a great way to have a larger home without compromising their budgets.
Assessing Your Home
The factors in assessing your home are how much you paid for it, how much it is worth today, how much the extension will cost and how much the property will be worth in the future if you add a home extension to it. Although the Global Financial crisis changed the “rules,” a great rule of thumb is that the value Perth property will double every 7 to 9 years.
So, for example, if you bought a home 9 years ago for $225,000 and it is worth $450,000 now, your home has brought you approximately $225,000 in capital gains, minus interest on your home loan. If you spend $200,000 on a seamless extension, your home may or may not be worth $650,000 now, but it may be worth $600,000, which would still put you $175,000 “up.”
Better yet, you have a nice, large home that will be easy to live in for the next 10 years, in which time it should double in value again. In some Perth suburbs, your home would already be worth as much or more than you have put into it, but even in those places where property values are challenged, your property will have appreciated in value at least as much as you spent on the home extension.
Value Comparison
The bottom line is that anyone who plans on living in a home for more than 3 years is going to be better off with a home extension than with any other solution to obtaining more living space.
In addition, a home extension is a painless process. You can live in your home while it is being built and the entire process of designing the extension and obtaining a permit is much easier than any other option.
Call Max Sardi at Next Level Extensions on (08) 9240 5888 for more information.