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Trade Up vs. Extending

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  • 01-07-2018 6:33pm
    #1
    theboringfox
    Registered Users Posts: 544 ✭✭✭


    Hi

    I am looking at extending a semi D house in Cork. Have initial drawings and looking at either just extending to back and side or also going up at side. Cost based on initial quotes from QS is so high on both options. Going to have to talk to a valuer to see if this is a runner as fearful value post extension will play havoc with the LTV on mortgage. Just always assumed it'd be be better value to extend but now I am thinking I will be selling up to buy another house but that sounds like an awful process too.

    House cost me 300k 2 years ago and extension cost likely to be 160k or 210k plus contingencies depending on if extend upstairs or not as well.

    Just wondering if anyone else been through the extend or trade up issue and any tips or advice?


Comments

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    #2
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    An Extension rarely pays for itself in terms of value around here. It’s pay off is getting the living environment you want, to your exact specifications. If you are already close to top of the LTV, I wouldn’t risk it.


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    #3
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Extensions always come with compromises. part of the existing house becomes a throughway into the extension. At a time of labour shortages, getting good reliable builders is difficult. The value of the extended house will not be more than the current value of the house plus the cost of the extension.
    The only reasons for extending is if you are happy with the location and want to be more comfortable or else there is no suitable trade up within range.


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    #4
    theboringfox
    Registered Users Posts: 544 ✭✭✭theboringfox


    Thanks for the responses. Backs up what I was thinking. Wish I'd done this before putting money into drawings etc. I'll talk to a valuer in area to bounce it off them but I think it will be a trade up over time. I really like the area so will stay nearby but I would think there would be houses in area for sale from time to time with the work done. It kinda makes me wonder though when I see all the extensions going up in area at moment why they are doing it. Many are only just bought and being extended so not sure what maths they were working off


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    #5
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    The main benefit for extending was the avoidance of stamp duty on upsizing. With that gone the savings aren't as much but they still exist. Sales and lawyer fees are the costs to consider.
    Extensions can add value to a property but rarely the cost of the works is added. Poor design being the main cause.


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