Are you thinking about a home addition for your investment property? Home addition plans involve many decisions and considerations. Read on to learn some helpful tips for your project.
Start with a Budget
The first step in building a home addition is to set a budget. It’s easy to become caught up in the excitement of a new addition, but costs can get out of control. Figure out how much you can realistically afford to spend and how you will finance the project. Several finance options are available, including
- Mortgage refinance
- Home equity loan
- Line of credit
Don’t forget to include non-construction costs, such as
- Higher property taxes
- Increased homeowners’ insurance premiums
- Increased utility bills
Most importantly, stick with your budget when you discuss your plans with a general contractor.
Consider Alternatives to an Addition
Before you commit to an addition, consider less costly alternatives that do not require a new foundation or roof. A remodel can cost 25 to 50 percent less than an addition. For example, a kitchen remodel may meet your needs. Maybe the attic or basement could be converted into additional living space. Tearing down walls or removing a closet or staircase can improve traffic flow throughout the house. If you decide that an addition is the best route, a general contractor can help you plan the next steps.
Decide the Purpose and Type of Addition
The best type of addition will depend on the purpose of the addition. Do you want to add more room for kids to play? Does the kitchen seem cramped and crowded?
Once you’ve decided on the purpose, you can choose the right type of addition for your needs. Sometimes, less is more when it comes to adding space. A bump-out, for example, is a cost-effective way to add a narrow space without the need for a new foundation or roofing. Consider a bump-out if you want to add an eating area to a kitchen or extra storage room in a closet.
Another important consideration is the effect of the addition on property value and return on investment (ROI). For example, Home Advisor notes that master bedroom suites produce an average 63 percent ROI, while second-story additions typically bring in a 65 percent ROI. You should also compare your planned addition with other homes in the neighborhood. If your property becomes overvalued in a moderately priced area, you won’t be able to recoup your investment.
Choose Materials that Blend with Existing Home
You’ll want the addition to look like it’s part of the original home. If the home has double-hung windows and vinyl siding, then the addition should have similar features. If you can’t find an exact match, look for comparable alternatives. A general contractor can help you choose materials, such as siding, roofing, trim, windows and flooring, that will integrate with the existing structure.
Hire an Experienced General Contractor
A licensed general contractor can assemble and oversee the work team and get the required permits for your home addition plans. With more than a decade of general contracting and project development experience, RH Blanchard will guide you through every step of your project. Get in touch today for a free quote.