Should I add a garage?

[Linda S.]

Hi BP,

I just wanted to get your opinion/thoughts, because I'm not a very frugal person when it comes to spending money on myself. I bought a house in 2015 for $155K, 1100 sq ft -3/1 bath in Richmond in a really great school district, but it needed a lot of cosmetic upgrades. My goal is to add 20% equity so I can get rid of the $70 PMI month on my mortgage, which I can apply to have removed in September 2017. We have re-done the kitchen (upgraded appliances, painted cabinets, new knobs, etc), opened up floor plan, uncovered hardwood floors, and will soon be building better closets.

          We are looking to add a garage,  probably will cost around $8K for a metal garage, and my finance loves tools, builds tons of things and does a lot of side jobs.  I have also always wanted a garage, and think we need it for extra storage.       

Do you think it'd be a good investment to add to the house?  Anyone else have a similar experience?

Many thanks, and Merry Christmas!

~Linda

[Andrew Syrios]

Financially, at that price point, I don't think it's a great financial investment. But if you're living there and want to have it, I think it would make sense in that respect. Especially since it will help you out and pay for probably most of itself. But for adding value to the property, I don't think it's probably worth it.