City Living: A new free book is a must read prior to renovating, says Edel Morgan
EBS has produced a free hardback book entitled Renovate, Develop, Extend! The How to Guide to add Value and Space to your Home. Home-owners considering doing any of the above should get this little gem of a publication written by journalist Frank Dillon.
Produced with the modern concentration span in mind, this 123-page book has an average of two paragraphs per page but yet manages to be comprehensive. It doesn't look like a freebie publication or fall into the trap of dishing out the usual bland, generic advice of the "decorate in neutral colours" variety. Each little page throws up a new nugget of advice or information on everything from the planning process (if the extension is over 40sq m/431sq ft), project management, dealing with builders and architects and the financial considerations involved.
The costs associated with moving house and the short supply of second-hand homes in Dublin are leading many people to look at their existing property with new eyes. Extending and renovating could yet become the new moving house but, according to the EBS, there is "a frustration at the lack of basic information available".
That said, will the people who renovate or extend today recoup the money they've spent if they sell within a few years? That will depend on where they live and the continued strength of the property market.When a relative bought her house in Dublin 9 in early 2004 for €350,000 she decided against building an extension because the ceiling price for houses on her road was around €380,000. As she had already spent around €70,000 on the stamp duty and the renovation, she and her husband decided they could manage without the extra space. Less than two years on, two extended properties in the area recently sold for over €600,000.
Local estate agent John Ronan from GWD said that the market is so aggressive that, had she spent €50,000 on an extension in 2004 and sold today, she would have recouped the money.
That said, if she did nothing to their house, she would still make a significant profit - around €130,000. As a renovated property without an extension, the property would fetch around €550,000, making her around €130,000 profit when the refurbishment and stamp duty costs are taken into account. With a €50,000 extension her house would get €600,000, leaving her a profit of, guess what, around €130,000.
Ronan sold a house in the same area to a couple living abroad in September 2004 for €470,000. When they changed their plans, having never lived in the house or redecorated, it was re-sold this month for €560,000, making them a €90,000 profit in seven months.
Of course, not everyone is thinking in terms of short term gains but want to extend their living space to meet the demands of a growing family, an elderly relative or a lifestyle change and are happy if it will boost the value of their home over time. The book outlines different ways to extend from attic conversions, which are the most cost-effective way of adding to your living area, to conservatories, which are possibly the least cost-effective.
Construction costs have risen significantly with a basic extension costing €2,300-€2,700 per sq m (€214-€251 per sq ft) plus Vat payable at 13.5 per cent. The book covers every stage of the project and it scores particularly highly in its advice on dealing with architects and builders. The golden rule, it says, is to get everything in writing and standard forms of written agreements are available from the Irish Homebuilders Association (IHBA) and the Royal Institute of Architects in Ireland (RIAI).
These agreements should incorporate as much detail as possible and include payment schedules. It warns that some architects charge a fee based on the final construction costs rather than the initial budget. There is advice for those who want to manage the project themselves and for those who employ an architect from concept to certification. If you hire an architect to oversee the entire project, the contract will probably be in four stages with typically 25 per cent of fees due at each stage of the project.
Some of the book is common sense but worth saying nevertheless. It advises showing interiors books and magazines to architects to help them formulate a clear idea of what you want. Good communication with the builder is also important. Apparently, it's OK to impose house rules on the builder, like asking them not to smoke indoors, but you should promote good relations by providing tea and coffee facilities for workers.
Some financial institutions will want to see quotes from the builder to verify the loan is for the purpose stated and may insist on a scheduled drawdown on the loan at various stages of construction. If you are increasing your mortgage, you may be asked to boost the level of your life assurance.
An evening is all it takes to read this concise publication and it could prove to be one of the most worthwhile evenings you've ever spent. To get a copy drop into your local EBS to register for one or call 1850 654321.
