Increase in value by adding a garage

I have a 3BR house that has a cement slab off the driveway with stumps which look like there was a plan for a garage, however it was never built. Would it add significant value to the property if I were to erect one? The current tenants have just signed for a further 12 months so I could not change the rent for another year even if they agreed for me to build one during their lease.

Would the increase in value be more than the cost of building a garage do you think?

 

Its area dependent, but in short -yes. Its going to add some value of course, the fact your main expense (being the slab) is already down makes for a real win IMO.. Hopefully its legal and in the correct spot for council.

One thing to check- dig down the side of the slab and see what kind of foundation it has if any. You may have to cut piers in before any structure can be erected.

 

Hey Pat.

To decide whether this is a goer or not, you've gotta think like a valuer. Look at comparable sales in the area. Will it add to the character of the house? Enhance the appeal?

I'd say generally yes, especially if it's an IP. One thing I've heard a few times on this forum, is quite often a tenants car is their most valuable possession. So they will probably be choofed to know, that not only are they residing in comfortable circumstances, their mode of transport is too lol

Plus always good to have storage or a workshop.

Considering it's in Hobart?? I'd say do it. As it's very unlikely you'd be overcapitalising.

 

thanks, i didn't realise the council had specifications around this. the cement is a short driveway which widens to allow side by side parking for 2 cars. so i could erect a double garage, and perhaps even allow for a covered external stairs onto the deck and the back door.

 

i'm not sure it will add to the character per se, it's a 1950s re bricker in hobart. but i think i would be able to add $10-20 per week. the value has most likely already jumped around 12-15% because of the recent growth in hobart. it might be worth me chatting to a local valuer upfront to see if they are willing to provide some advice.

 

Having a concrete pad does not mean a garage will be allowed. I thought so at my place years ago, but hadn't realised the effect of the required building 'setback' from the street!

Also, you might be surprised at the cost to build a brick garage, cheaper if you use brick piers and cladding.

 

Some councils don't like a garage located forward of the building line so do ask council if that is your situation.