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Double Garage = Over Capitalizing?

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  1. #1
    Member blak's Avatar
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    Default Double Garage = Over Capitalizing?

    Looking at the pros and cons of spending ~$25K on an attached double garage for the house. The DA has been approved but the construction estimates have blown out big time.

    House is a 2 bedroom place on a 300 square metre block. Currently has off street parking for 2 cars which is open to the weather. Only storage I have outside is a Statco lawn locker. Will we be in this house for another 5 years max, before upgrading to something bigger.

    Should I spend the money for the double garage, or is this a classic case of over capitalizing?

  2. #2
    Tamperer
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    I would have thought a double garage for a house with only 2 bedrooms would over capitalising. You could probably add another bedroom for a little more, which you would assume would add much more value.

    Although storage is a key seller, so i guess if you could create some sort of shelter (shade sail or similar) and a shed you might spend a quarter as much for the same result?

  3. #3
    Retired Marine Engineer 1K Club Member Ashore's Avatar
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    Where abouts in newcastle? , usually bathrooms , kitchens and lock up garrages add value to the property , but depends on the area , a lot of younger home buyers are looking for 2 car lock up garages whit them both working and smaller 2 bedroom homes are selling well in most areas with the first home buyers grant , weather that will still be around in another 5 years ? , I would have thought 25K was a little high but if thats the going rate I would go for it
    Ashore




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  4. #4
    Member blak's Avatar
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    Extra bedroom/bathroom or living area would be nice in place of the garage, but then we would not have any off street parking. Im in Broadmeadow/Hamilton so parking on-street can be a real pain in these suburbs.

    The garage cost has blown out as we are building over a sewer line so steel screw piering alone is $3K+. Attaching it to the house and integrating it nicely has also made it more expensive than if I were to get a prefab freestanding metal thing from Bradville etc

    Have looked at speaking with some real estate agents regarding the over capitalising problem, but they have a tendancy to just tell people what they want to hear. Really appreciate feedback from external people, as I often just look at things from my own perspective. Cheers.

  5. #5
    Retired Marine Engineer 1K Club Member Ashore's Avatar
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    Hamilton /broadmeadow , you'll only increase the overall value espically ajoining the houserather than free standing , definately go for it, shame about the sewer I re-routed mine when I first moved in to along the boundry cost a few grand even dack in 84 but was worth every cent
    Ashore




    The trouble with life is there's no background music.

  6. #6
    1K Club Member Gooner's Avatar
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    I would have thought $25K for an attached double (brick?) garage is quite good. I looked at doing the same thing and turned out to be closer to $35K. In my case I deemed this to be over capitalizing. If you're only planning on staying put for another 5 years I would probably just build a colorbond type shed for the extra storage.
    I'm no expert, but know enough to be dangerous...
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  7. #7
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    If it is attached and done well - the next person buying it see's it as a blank canvass for conversion to a large rumpus, family room etc if they need more than 2 bedrooms. I have seen people kick the dining room and kitchen into a nicely done attached double - use those spaces in the house to create two new bedrooms, and then funnily enough put up something like you have now for their cars.

    Make the space more convertable for that reason - plumb water H&C and dunny and plenty of power into it (don't need to put the dunny or a sink in just cap them off), it's cheaper now while you are building. When it comes time to sell everything is there and the realtor will click his heals together when he jumps upon hearing you have future planned for a transformation if needed.



    .

  8. #8
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    $25k or so? Just do it.

    The convenience and the reduced deterioration of your vehicles alone will make it worthwhile. You also might get cheaper insurance with a lock up garage.

    If you were building a taj mahal like we did, it's a different kettle of fish, but we don't regret it either.

    woodbe.

  9. #9
    owner builder
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    IMHO it is one of the best added value features to a house. A garage represents near zero extra house work, is very versatile and cheap as it is not subjected to most of the building code or basix. I am very biased; my garage I am building is around 120 sqm. I've got one of those stretched hummers . My place has only 2 bedrooms as well. Am _I_ over capitalising?

  10. #10
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    Yes you are Graham.

    Well done!

  11. #11
    Golden Member GraemeCook's Avatar
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    Quote Originally Posted by blak View Post
    Have looked at speaking with some real estate agents regarding the over capitalising problem, but they have a tendancy to just tell people what they want to hear. Really appreciate feedback from external people, as I often just look at things from my own perspective. Cheers.

    Unfortunately you are correct, Blak. But real estate agents are in the business of selling, not valuing, although some do develop quite a good feel for the market. Their real skill is in convincing you that the asking price of a property represents the opportunity of the century.....

    And a free valuation by a realty salesman is probably priced correctly.

    Licensed valuers only do valuations, and they routinely do valuations "off the plan". But they will charge for their services.

    Cheers

    Graeme


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