Will increasing GFA by doing extension front and back increase house value?

[XX33 0]

Hi, I’m a new landed owner here. Would like to seek opinions? Just purchased an inter terrace, original cond, 3 storey,  land size 1900++. Yesterday started meeting up with IDs and builders. Initial plan was just to extend the back- make bigger kitchen, do balcony on 2nd floor, change/modernise car porch, change facade and reno interior. Builders suggested extension in front, using car porch to create more spacious master and balcony. Saying increase GFA will increase value and asking price. Is that true? We do not want to overspend on reno as this is not our forever home and we want to cash out within 5-7 years time. Thanks all! 

Edited January 17, 2021 by XX33

[snoozee 97]

builders will sure ask you to do more so they can earn more. whether value will increase or not will also depend on the market conditions when you want to sell the house. there is no guarantee that what you put in for the additional work will give you more returns. the only guarantee is that the builder's wallet will become fatter as your scope of work increases.
if you already have plans made for the near future, just stick to your plans.

[IceEyez 4]

Generally, a larger built-up/GFA, more rooms etc does command a higher price when selling, assuming all other conditions remain constant (Market sentiment, condition of house etc).

Of course do consider how much any extension might cost to build and weight it against possible increase in value. And whether this increase in cost stretches your budget to such an extent that it makes you compromise on other aspects of the renovation (materials/finishes etc).

[XX33 0]

8 hours ago, snoozee said:

builders will sure ask you to do more so they can earn more. whether value will increase or not will also depend on the market conditions when you want to sell the house. there is no guarantee that what you put in for the additional work will give you more returns. the only guarantee is that the builder's wallet will become fatter as your scope of work increases.
if you already have plans made for the near future, just stick to your plans.

Okay, thanks snoozee. What you say makes sense. Have to really think about it carefully. 

[XX33 0]

2 hours ago, IceEyez said:

Generally, a larger built-up/GFA, more rooms etc does command a higher price when selling, assuming all other conditions remain constant (Market sentiment, condition of house etc).

Of course do consider how much any extension might cost to build and weight it against possible increase in value. And whether this increase in cost stretches your budget to such an extent that it makes you compromise on other aspects of the renovation (materials/finishes etc).

Thanks IceEyez, yes really have to think hard whether it will give us the returns in future if we are willing to spend additional on A&A. 

[Kellhound 4]

Hi, if you are planning on cashing out in 5-7 years, then I say expand as much as possible without needing to do A&A submissions to save cost. Keep it under "renovation".

Also consider if you need extra space in the next 5-7 years e.g. kids, aged parents etc.

Edited January 21, 2021 by Kellhound

[IceEyez 4]

On 1/21/2021 at 5:39 PM, Kellhound said:

Hi, if you are planning on cashing out in 5-7 years, then I say expand as much as possible without needing to do A&A submissions to save cost. Keep it under "renovation".

Also consider if you need extra space in the next 5-7 years e.g. kids, aged parents etc.

Dote not that actually the only difference between "renovation" and "A&A" is:

1) URA Submission fees. For landed house if can do under lodgement will only be $742.
2) Time line - slightly longer time required to obtain approvals from URA.

Even without A&A submission to URA and under "renovation", it is entirely possible that you still need to submit to BCA as long as it doesnt fall under the BCA exemption list. Eg. If you extend 2nd storey you need to to submit to BCA/obtain TOP anyway.

Conversely, it is possible to have to submit to URA, but don't need to submit to BCA, engage PE, obtain TOP etc. (example - if you build a larger than 20sqm  1st storey extension constructed with light weight roof)