Need space? Building up could be the answer

With housing in limited supply across New Zealand, many Kiwis are choosing to maximise the space they have – and things just got a little easier.

New government planning laws will soon allow the height of any family dwelling to be increased from one storey up to three.

If you’re considering building up instead of moving out, here are some initial steps you can take.

Explore the pros and cons

Extending upwards can be ideal if you don’t have much room to expand horizontally.

This type of renovation can provide more bedrooms and living space while maintaining the existing outdoor space, but it may not work for every home.

Consider whether an additional storey will convert to returns if you sell. A Mike Pero Real Estate salesperson can give you an idea of what your home is worth in the current market.

Research the costs

A second or third storey extension can be less expensive than buying a larger home, but there are still many costs involved.

The type of rooms you require will greatly impact the project cost, as will reinforcing the ground floor if necessary.

Collecting trade quotes will help you understand the cost of labour and materials. Securing funding in advance can also assist in determining a budget.

Understand your finance options

There are several ways to finance a renovation, depending on the size of the project and your available funding.

If you have an existing home loan, you may choose to top-up and borrow added funds. Or, if you’ve made extra mortgage payments, you may be able to redraw those funds.

Other options may include refinancing your home loan or taking out a personal loan.

Ready to get started?

Renovating is not for everyone or every property, but it can provide more comfort and potentially increase the value of your home.

If you’re ready to start your renovation journey, a Mike Pero Mortgage Adviser can help assess your finance options and find a solution that’s right for you.