Adding value to new dwellings?

[Chippo]

G'Day All,

I have just purchased my 1st block of land and I'm stoked!!!

I plan to build a 4x2 on the cheap but still get a good valuation on it

So my question is for the valuers on SS or anyone who knows the valuing system the banks use...

What sort of things should I be including in the house to get the best value at the end, such as

Does a alfresco area or a theater room add more value?
Will a stone kitchen bench top add to the end value?
Does having a larger square m house add more value?
Having a study?
A/C or Evap?

Or what other features add the most value on the cheap?

Cheers in advance

Chippo

 

[handyandy]

You need to include realestate agents in your question as the value is a function of demand or more to the point the type of properties in demand in that particular area.

Even with valuers they will look for comparables if you build a palace in an area largely made up of 3 bed / 1.5 bath then they will not value it as much as the same size house surrounded by similar size and featured houses.

Cheers

 

[Chippo]

G'Day Handyandy,

Cheers for the reply mate

Your right about the realestate agents, I might give them a call and see what they think

Cheers

Chippo

 

[craigb]

as andy says, its about demand , but also whats around the area, a mansion in a cheaper burb, will not reach its full value potention, even if it has c-bus and stone benches , and all the other bells and whistles, the oposite also applies is a crap home amongst mansions will cost more that if it was in a cheaper area, the larger homes would drag the value up a bit , and folks would be buying for potential in the future.
I would , find out the record prices in the area, see what they are like and develop your home like that one perhaps 10% less in add ons , iie bells and whistles , the top value should drag the difference up .

 

[DaveM]

Or what other features add the most value on the cheap?

What a fair majority of people buy into is not finishes, its lifestyle image. They will happily pay money for someting which they imagine themselves using daily, but probably will never end use.

You have touched on a few already - alfresco areas are one big one. People see themselves reading the paper at the rear stained teak entertaining table, sipping a latte and kicking back, when in reality they will be lucky to grab a cup of Nescafe Blend 43 while shovelling 3 kids out the door.

Rear awnings or deck with shade cloth are a cheap way to achieve this without a gigantic expense. Throw in some spiky red plants in pots with white stones at the base, and you instantly tug at the heartstrings of aspirationals.

Theatre rooms are also another favourite - seldom used, as family tv time usually happens in the family room, and the occasional adults night usually gets interrupted by the kids anyway.

When selling a place, dressing it well will get you a good premium. Watch Selling Houses Australia or Property Ladder for ideas. People imagine themselves in the house, regardless of their own furnishings and needs. Tug on those heartstrings of sophisticated urban living, and watch the bids pour in.

Of course, all this means squat to a valuer. They are trained to ignore the contents and the chitzy finishes, look at land value, look at house value, and arrive at $x. Things like ultra modern kitches with corian benchtops may add thousands to a buyer, but may only add hundreds to a valuer. The $20k spend on a new kitchen may only net a value increase of $2k compared to having the older kitchen. Valuers appraise houses as depreciating assets.