Home additions: what newbies need to know
There may come a time when you feel your house is getting too big, and once that happens you have two choices: you can move to a bigger house, or you can add add square feet to your current home. The latter can be accomplished with an addition to the home, so if you’re craving more living space, it’s worth considering one.
What types of home additions are there?
As the name suggests, a home addition is a way to build on an existing home. An addition to the home can be a smaller project, like adding a veranda, or it can be larger, like adding a master suite or master suite with a kitchen and a bathroom. baths.
If you don’t need a lot of extra living space but could benefit from an extra room, then a room addition or extension is probably the right project for you. While you can tackle this kind of project yourself, especially if there is no wiring or plumbing, it is often beneficial to hire a general contractor with experience of building on a house.
If you need a lot more living space, you can consider a multi-room or two-story addition built on the side of your house or added behind your house. Not only could this give you a lot more square footage, but it could also allow you to enjoy features that your home might not have had before. For example, if your home is missing a family room, an addition could make one possible. And if you need an extra bedroom or two because you’ve grown your family, a multistory addition could solve that problem.
This type of addition, however, is not something that most homeowners can tackle on their own. On the contrary, you may need a architect, structural engineer, and construction supervisor to supervise your remodeling project and a multitude of contractors to get the job done.
What are the benefits of home additions?
There are many good reasons to increase the square footage of your home with an addition:
1. You will benefit from additional living space without having to move. Moving can be expensive and time consuming, so building on top of your existing home means you don’t have to deal with it.
2. You will stay in your neighborhood. You are not guaranteed to find a bigger home in the neighborhood you like. If you are ready to embark on a major renovation, you will have the option of staying put.
3. You could increase the value of your home. The more living space you have, the more attractive your home will be if you decide to sell it.
4. You can keep hard-to-find features. Maybe your house has a fabulous cuisine, Great curb the call, or a spacious master bedroom with an even more impressive walk-in closet. An addition will give you extra space without having to give up these things.
5. You won’t have to request a new one mortgage. If you need more space and move to get it, you will need a new mortgage. If you are staying put, you don’t need to go through this hassle (although you will likely have to apply for some type of loan to pay for a large remodeling project as an add-on).
What are the disadvantages of home additions?
While adding living space to your existing home can be a smart move, there are also downsides to consider:
1. You may not get your investment back. Any renovation project carries the risk that you will not be able to recover the money you invest in it. This is also true for home additions.
2. You will eat in your outdoor space. Whether you add a single bedroom to your home or build a two story addition, the more you expand, the less outdoor space you will have. If your home is not on a larger lot, you may find that by gaining more square footage indoors, you make your backyard too small for comfort. And if you have children, this is a particularly important concern.
3. You will have to live in a construction zone for a while. A major renovation like an addition to the house takes time. If you decide to go ahead, you could end up with noise, dust, debris, and the hassle of having contractors in and out of your home all the time.
How to finance a house extension?
Home additions tend to be very expensive. As such, you may not be able to pay for one directly. There are several financing options you can explore to pay for a home addition, including:
1. A home equity loan. Here you can borrow against the equity you have in your property. A home equity loan is a fixed rate loan that is fairly easy to claim since your house is used as collateral; you can get one even if your credit rating is not that great. And interest on a home equity loan is usually quite reasonable.
2. Home equity line of credit. Rather than taking out a home improvement loan, you can apply for a line of credit based on the equity in your home. This way, you can dip against it as needed, and you will only have to pay back the amount you actually borrowed.
3. Cash-out refinancing. With cash-out refinancing, you refinance your mortgage but borrow more than your loan balance. The difference is paid to you and you can treat it like a home improvement loan.
4. A personal loan. A Personal loan allows you to borrow money for any purpose you want. You need good credit to qualify for a personal loan, but it’s also a fairly affordable way to borrow.
No matter what funding options as you explore, don’t make the mistake of putting a home addition on a credit card and paying it off over time. It could hurt your credit score and cost you untold interest.
Is An Addition To The Home Right For You?
Adding square footage to your home is a reasonable option if you need more space and have a property large enough to build on. Just be sure to weigh the pros and cons before making your decision.