Add a garage

[joffa64]

I have an IP in the north western suburbs of Melbourne which has been performing okay, but not great, and initially I was tempted to sell it recently but have decided to keep it for another couple of years and re-assess it then.

It's one of the very few properties in the area that doesn't have a garage (or carport or any under cover parking), although it does have the space for it, so there are a few options I'm considering:
1. Leave it as is.
2. Have a garage built now. It's vacant at the moment but it will be on the market again this week so tenants would need to be agreeable to work being done.
3. Wait until I decide to sell the property, and have it built just before it goes on the market.

I would guess the property is currently worth around $375k, and I'm conscious of not over-capitalising, but there's no doubt it would add value to the place, I just don't how much, and I have no idea how much it would cost to build.

If I did decide to do it now, I would look to finance most or all of the cost if the bank will lend me the money, maybe add it on to the existing loan. That way I can claim the interest and I assume I could also claim depreciation on the building cost.

Any thoughts or comments?

 

[jerrybee]

Add a carport. It's a lot cheaper and for people with an average car (like me), I wouldn't care. The rent increase of a garage vs a carport wouldn't be worth it if you consider the difference in cost.

 

[Cassandra]

What would an average, presentable two car garage or carport cost?

 

[jerrybee]

See that's the thing. If you don't do it right a cheap garage is going to looked mismatched and ghetto. Whereas almost any cheap carport looks good

 

[joffa64]

Thanks for the suggestion jerrybee, I hadn't thought of that. What would it cost roughly for an average 2 car garage, does anyone have any ideas?

 

[JT87]

I've been looking at prices in QLD, for a double colorbond car port your looking at 4-5 k installed.

 

[knightm]

Jerry offered some great advice and carports will def be cheaper.

However (particularly in good but working class areas) I am always surprised how much a great big garage/manshed seems to add desirability for tenants. If you find the right tenant (ie a car or bike lover) they will pay more rent, but also appreciate it and stay longer. For cheaper areas a slab and colorbond is all you need, upmarket areas probably need better materials.

 

[joffa64]

I'm probably thinking more in terms of adding value when it comes time to sell, although extra rent will be an added bonus in the meantime.

If I decided to go with the garage, and let's say it cost $30k to build, could I expect to get $30k extra when I sell the place? And would that be enough? Aren't we supposed to plan on adding $2 value for every dollar we spend or something like that?

Maybe I should speak to a local real estate agent and get their opinion as to how much value it would add?

 

[poordeveloper]

Why would you spend 30K on the garage if you're maybe only going to add 30K of value when you sell it? You might as well put that money in the bank and at least you'll be covering inflation.

The cost would be approximately 8% of the property which does seem like an overcapitalisation to me. As others suggest, you could go for a carport. Or just leave things the way they are ..

As for any potential extra rent, it's not really a given. Our properties in inner Melbourne have garages and the tenants prefer to park on the street or don't own cars. I doubt the garages add any premium to the rent.

 

[WattleIdo]

I've been looking at prices in QLD, for a double colorbond car port your looking at 4-5 k installed.

That sounds reasonable. Would that be steel posts with colorbond roof? I got given a rough estimate of $10K - $15K from a builder on Mornington Peninsula today.

 

[joffa64]

WattleIDo is that for a carport or a proper garage?

 

[Encarta]

I've been looking at prices in QLD, for a double colorbond car port your looking at 4-5 k installed.

I have been looking at this as well in Qld, my property manager says we loose 50% of applicants because we don't have one. I thought of a shade sail that would be even cheaper but not sure about the look!

 

[WattleIdo]

WattleIDo is that for a carport or a proper garage?

That's for a carport! Nearly fell off my chair. Liking the sound of the shade sail.

 

[Encarta]

Why would you spend 30K on the garage if you're maybe only going to add 30K of value when you sell it? You might as well put that money in the bank and at least you'll be covering inflation.

The cost would be approximately 8% of the property which does seem like an overcapitalisation to me. As others suggest, you could go for a carport. Or just leave things the way they are ..

As for any potential extra rent, it's not really a given. Our properties in inner Melbourne have garages and the tenants prefer to park on the street or don't own cars. I doubt the garages add any premium to the rent.

In Qld, people don't like sun on their cars, understandably

 

[WattleIdo]

I have been looking at this as well in Qld, my property manager says we loose 50% of applicants because we don't have one. I thought of a shade sail that would be even cheaper but not sure about the look!

Can you tell me where you're getting your 4-5 K quotes please?

 

[chindonly]

I added a new double carport to my old place last year.

Cost about 10k but:
- Was oversize - 7.4m wide, 6.5 long
- Extra height
- Included demo and removal of old 1.5 carport
- Garden bed clear and excavating
- Extend slab
- Approvals etc

Was originally looking at brick double garage, but that was going to be around 40k.

 

[Encarta]

Can you tell me where you're getting your 4-5 K quotes please?

I believe jt87 mentioned that. The cheapest I had was for a shade sail installed by a local guy with relevant council docs for 2k or thereabouts. I haven't Pursued anything as yet but will let you know if I do.

 

[joffa64]

Thanks chindonly. that's interesting to hear, I would have expected maybe $30k but $40k is getting up there. I've got a guy checking out the place tomorrow for a quote on a carport, he told me to expect somewhere around 10k.

 

[WattleIdo]

I believe jt87 mentioned that. The cheapest I had was for a shade sail installed by a local guy with relevant council docs for 2k or thereabouts. I haven't Pursued anything as yet but will let you know if I do.

Yes too much chocolate. Thanks Encarta.
jt any info on the cheaper range carports?

 

[joffa64]

Well the garage quote just arrived, $45k thanks very much. Looks like the carport is going to be the better option.

What do you guys think about a carport with a roller door attached to close the area off from the street, or would it be better just to leave it open?