Adding a garage or carport can be a great investment
If you have the space and the budget, adding a garage or carport on to your property can be a great way to increase its value.
Often overlooked and taken for granted, the humble garage is actually a desirable property feature. Not only does it provide a home for the car, but it also provides storage space. For this reason, investors looking to boost the value of their portfolio should consider adding a garage, or carport, on to properties that don’t have them.
A new garage can solve a parking issue
A surprising number of properties don’t have off-street parking, let alone covered parking space. And yet most people want it. This means that, for a landlord, having a property with even a modest garage on it is a real bonus. Not only does having a garage improve a property’s attractiveness with potential tenants, but it adds value to property. Therefore, adding a garage can boost rental returns, as well as increasing equity and return on investment on resale.
Realestate.co.nz national property management specialist Vesna Wells says that, nationwide, tenants tend to be willing to pay more for a garage. “Wells says the amount of additional rent that can be achieved, along with the potential capital gain, should form part of the decision on whether to build a garage.”
Do your homework and consider your options
Adding a garage to a property may be more complicated than it initially appears. Costs can be significant and it is necessary to navigate the consent process. However, the investment pays dividends. Not only will having a garage increase the value of a property, but it will make it more attractive to good tenants and is likely to boost rental income. Therefore investors who add one will reap the rewards.
We suggest you do your homework carefully and discuss with your property manager the possible return on investment should your property offer secure car parking, before embarking on such a project.