Has anyone ever added a second bathroom to a house to add value? we are looking at a potential conversion from a large laundry to a second bathroom, and would welcome any stories, tips or advice.
Hi There
Ive not added a bathroom before.
WIth my research in WA on average houses in average areas, the value seems to be around $10k more for a 2 bathroom as aposed to a 1 bathroom property. I guess it depends how much this is going to cost.
These days we ALL prefer at least 2 bathrooms but it all comes down to sums and if its going to increase your profit. Do your calculations!
Sorry, im not much help!
Firstly ask yourself are you looking to :
a. build equity through valuation?
b. increase the rent (and perhaps increase equity also)
c. improve the property because your living in it
d. add value to the property so you can sell itI have found that “sometimes” structural improvements
don’t neccesarily add a great deal of value vs. money invested.
For eg. $14K for new bathroom, may improve the property $12KPersonally I would try a cosmetic makeover
As some say
“a bit of lipstick and makeup and put her back on the street”
For $1000, a fresh two tone coat of neutral coloured paint, new handles, replica designer light fittings (similar style, half the price), steam cleaning, a little gardening if possible… you get the idea.
Whenever someone inspects your place… but some fresh flowers to give it a fragrant touch… (You can give them to your gf / mother afterwards — they won’t know) [biggrin]You may find the “buyer / tenant” enjoys the idea of a large laundry.
Remember if this were an IP and you were to sell it,
you would loose roughly 25% (50% of 50%) in CGT.
So whatever you decide to do, make sure the profit well outweighs the money invested.[thumbsupanim]Good luck.
“There is nothing scarier than ignorance in action”
Thanks for the replies. We have done a reno before and are looking at all the cosmetics again we’re happy enough with all of the basics, but this time looking for something more.
This particular place is 4 bed 1 bathroom and has a large laundry which seems to lend itself to being converted to a bathroom, but that’s a bit more major than the cosmetics we’ve done before.
From our research and understanding, once someone is looking at 4 bedrooms; 2 bathrooms is more or less expected too, hence we’re looking at adding that extra bathroom, but need to hear from someone who has done that particular reno.
We’ve also been told that in this area, a 4bed 1 bath rents for $270-$280 whereas a 4 bed 2 bath rental starts at $300! Sales also seem significantly higher priced ($20 000+ more for the extra bathroom)
Any suggestions????I think you have answered your own question[biggrin]. On your figures regarding both sale and rental, I think the extra bathroom sounds the way to go.
Wylie.
Hola.
Friends of mine cut a little slice out of a laundry for a second bathroom once. They were concerned because the laundry was where the dog slept and where things got hung out to dry in the winter months so they needed a fair amount of room in there. In the end the second bathroom was pretty small (just a dunny and one of those little half basins) so they didn’t lose much out of the laundry but still got the value added onto the home. I can’t give you a dollar figure on the value adding but they seemed happy with it.
It sounds like you’re doing your due diligence anyway but I would suggest speaking to a couple RE agents about second bath vs. big laundry, get some quotes from some bathroom people (or from a bathroom store/auction house if you’re DIYing) and see if the figures stack up. If, indeed, the rental goes up $20-30pw ($1000-1500/year) with a second bath then work that into your calculations as well.
All of that was no doubt already taken into account but it can’t hurt to hear it all again I hope.
Art
‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein
HI Sepcific,
Just out of interest, where about is this place? I looked at purchasing one like it a few months ago now but my plumber said that as a 4 bedder a laundry is vital and not to loose that aspect……
He also quoted about $200-2500+ costs for plumbing to put applicances in for a brand new bathroom… and that was at mates rates….Snowflake
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