What to consider before you renovate!
Bathrooms are often the first place homeowners look when deciding to renovate. A beautifully presented bathroom really strikes a chord with potential buyers and looks really inviting to guests when visiting your home.
A freshly renovated bathroom also brings a nice modern look to your home. Bathroom renovations can have a huge impact on the whole function of the property. Especially if you are adding a new bathroom to the property.
No more queuing for the shower in the morning and no more interruptions when trying to have a long soak in the bath.
There’s something really relaxing about soaking in a huge bathtub after a hard days work. I certainly love it! And I know my girlfriend does! Especially when we are able to zone out and forget about the stress of the day’s work.
This also is hugely appealing to potential buyers and will be a huge tick in the box when selling.
One of the main reasons why homeowners tend to undergo bathroom renovations is due to the age. If your bathroom is 10+ years old it may be showing signs of wear and tear. Therefore this can present potential problems with leaks, loose tiles, dripping fixtures, damp & mould.
Another reason why homeowners are renovating, even more, is due to the inflated house prices currently in the market. People are opting to renovate their existing property instead of buying and upgrading to a larger property. This is simply the more affordable option.
However, before undertaking your bathroom renovation there are a few areas you need to think about.
The main thing to think about is your budget. Bathroom renovations can drastically vary in cost and can be very expensive.
They tend to vary over the following ranges. A simple cosmetic renovation can be as little as $5,000. A basic renovation is between $11,000-$20,000. Or they could potentially be upwards of $40,000 for a luxury bathroom renovation.
See the below graph from the HIA (Housing Industry Australia) showing the average value of a bathroom renovation.
So how much should you look to spend on your bathroom renovation?
Typically, homeowners are advised to aim to spend around 2% of your property’s overall value. This means before you start you should be aware of what your property is worth. Then you can find the recommended amount to spend on an existing bathroom without over-capitalising. For example, if your home is worth $600,000. A 2% rule of thumb will give you $12,000 to budget for your bathroom renovation.
The other important factor which we should consider, is how much value a bathroom renovation can add to your property? The goal when renovating a bathroom is to earn back double your costs. So if your bathroom renovation costs you $10,000 you need to aim for a return of $20,000 to your property’s value.
This obviously sounds easier said than done!
The same thought process applies to adding a new bathroom to your property. Although new additions tend to be more expensive than a renovation. This is because more often than not you will need to add new services, add new walls and all new fixtures and fittings.
However, if good research has been carried out and you position it well within your existing home. Then the returns can be extremely rewarding. It’s very important not to get carried away and overspend on luxury items. This will eat away at any potential profit you wish to make.
So, compiling a budget is crucial to see if renovating your bathroom is worth it. But before you compile your budget, you need to first, do your research.
Research is the best place to start and a good tip to consider is what are the other properties in your area offering to the market? And what is the current asking price of those properties?
Find the design and the materials you want to use. Look into current trends and desired tastes. If you are incorporating finishes and colour schemes that people like. Then half the battle with reselling is won.
Also, consider if there is anything that you can save from the existing bathroom and just smarten up with some elbow grease or a splash of paint?
Whether or not you’re planning to sell your property. You need to consider the functionality of the room and that it fits the demands of your family. A good interior designer with knowledge on the market can offer some extremely valuable ideas to the design and functionality of the new bathroom. They can also help with sourcing materials and fixtures that are in line with your budget.
Your research, therefore, should tie in with your budget allowances. The following six points will determine how much you spend on your bathroom renovation:
- The size of the bathroom you want to renovate.
- The selection of the fittings and fixtures.
- Your overall design with tiles or any additional features.
- Whether or not you need to relocate any services.
- Are you having custom made cabinetry?
- How much of the work do you intend to do by yourself?
When you consider these items early in the process it can help save you money further down the track.
So to recap, in case you love to skim as I do!
Understand the reason for what is driving you to renovate your bathroom. Is it to resell or is queuing up for the bathroom every morning driving you & your family insane?
Gain an understanding of your local housing market. Look at the prices of different properties and what those properties are offering the market.
Know your recommended budget. This can be worked out at around 2% of the value of your home.
Research the hell out of the layout, design, fittings & fixtures and pull all the information together.
Compile your budget based on your research. Keep it in line with the recommended spending guidance and stick to your selections with regards to the fittings, fixtures & finishes. Make sure you are not over-capitalising.
If you are hitting the green lights and everything is saying proceed.
Your next step is to plan out your renovation. And start to hire a team.
As always, Email me, and let me know how your research & budget compiling went. I read every one.
Let me know if you come across any problems I’m happy to help where I can.