When it comes to homeowners’ reasons for adding to their homes, increasing property values is at the top of the list. Even so, many people overlook the ROI of an attached garage. Even those aware of the return-on-investment can be unsure of how to get funding for a plan of this size.
For homeowners interested in building a garage or seeking funding for their dream project, here’s a thorough guide on adding a garage to your home.
Recouped Value of a Garage Home Addition
According to the data provided by Remodeling magazine, building a new garage has an ROI of approximately 64.8%. This return-on-investment is one of the best you’ll find when it comes to additions to your home. A master suite — with one of the next highest room addition ROIs — only has an estimated 55% recoup value in comparison.
Planners considering an attached garage should note that these calculations are mainly for detached add-ons. Building an attached garage will still increase the property value of your house but won’t bring an ROI as high as a detached garage.
The Specifics of Adding a Garage to Your Home
Through research specific to your renovation plans and speaking with a contractor, you’ll discover details about adding a new garage to your home. However, there are a few construction options that you’ll want to consider regardless of your specifications:
• Two-car space: A larger space will add much more appeal to your house than a smaller one. Also, the extra space is still a great bonus for homeowners who aren’t interested in raising their house value.
• Lighting: These structures often don’t get much natural sunlight, so it’s important to include enough artificial light in your renovation plans. Fluorescent lighting, along with double outside lights, will create a moderate amount of brightness.
• Windows: Whether you have good lighting or not, the natural lighting and design of windows in your structure will easily boost its appeal. Five double-hung windows is a good number, but any number of windows will increase the value of your attached garage.
You and your contractor can also decide on other considerations, like dimensions and building materials.
Situations Where Adding a Garage to Your Home May Not Be the Best Choice
Though a garage home addition generally has a good return on investment, there are certain scenarios that would lead to a decreased recouped value.
For starters, this addition will bring a higher return on investment to those who plan on moving out of their house fairly soon. Much like a car, a home addition can lose thousands in value for each year that it has existed. Individuals staying in their house for years to come should hold off on any renovations only meant for increased property value.
On top of that, any home addition project will be a bit pricey. Since a new garage won’t recoup the full cost you spent on it — no home renovations will — it might be better to look at other renovation ideas if a project of this size could hurt your credit score or monthly finances. Still, if you need a bit of help making your project a reality, there are contractors that’ll show you how to pay for addition to home projects.
If any of these situations apply to you, that doesn’t mean you can’t take the project on. In terms of home renovations, an attached garage still has plenty of benefits regardless of what its recouped value may be. As you would with all renovations, weigh the pros and cons alongside how much the project would mean to you.
Other Ways a Garage Home Addition Can Boost Your Finances
A new attached garage can benefit your financial situation in various ways.
With all the space a two-car home addition has, individuals are much less likely to have a monthly storage unit bill. The attached garage can also reduce the cost of car ownership by protecting your vehicles from the elements. With your vehicles safely inside, theft, vandalism, and accidental damage will become much less likely.
Building a Garage Might Be Perfect for Those Who Love Home Renovations
When it comes to an add-on for your house, a new garage stands out as one of the most beneficial possibilities. Like any major home renovation, building a garage will take a lot of time, energy, and money. Homeowner Funding is happy to get you on the right path to make the process as easy as possible.