X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property-a-holics

    Add a Bedroom or Buy another house

    Hi,

    I have noticed alot of people are extending student houses by going into the loft area which will potentially be another bedroom and a source of income.

    My take on this has always been for the amount of money spent on the conversion/extension - you can put down a deposit on another house which will potentially have 3 bedrooms, plus hopefully more capital appreciation and spreading your risk.

    What are your thoughts - I dont think it makes financial sense adding a room to the exisiting property you may have - but am I missing something very simple here?

    All advice greatly appreciated.
    0
    0
    Hi Samg,

    What a great question!!

    Adding an extra bedroom could be a way to add value to a property to re-finance and pull out as much cash as possible. It will also create better cash flow.

    However, if my intention was not to recycle cash quickly, then I agree that using that money to buy an additional asset makes more sense for the reasons you've given.
    0
    0

    Buy another property, the potential in current property will always be there, so you can create the extra bedroom anytime.
    In the early days we bought lots of properties with potential for extensions or to create new plots in the gardens, over time we have exploited these but not at the expense of buying new properties.
    0
    0

    Phil Stewardson.

    Stewardson Properties.

    Stewardson Developments Ltd.

    Burson Land Ltd. & Jennings & Gilchreaste Ltd.

    http://www.stewardson.co.uk

    Follow me on twitter - @philstewardson