Where to begin – tackling a bathroom renovation

Your reasons for renovating a bathroom will dictate how you allocate your budget and the design you go for.

Renovating for your family’s enjoyment means you can spend money on fixtures and finishes that suit your tastes. If you own an investment property, durable finishes and an easily maintained design will benefit you and your tenant. If you are renovating to sell, you will be trying to attract buyers and add value to the property.

“Bathroom renovations can definitely add value, but it’s also easy to overcapitalise as these are the most expensive spaces to build and renovate due to the range of trades, special finishes (such as waterproofing) and range of fittings and fixtures (including basins, toilets, taps and so on),”  says Cameron Frazer from Ask An Architect, the building advisory service of the Australian Institute of Architects. “A newly renovated bathroom may add ‘wow’ factor, but bathrooms can also be very ‘personal’ areas and your taste may not match that of a prospective buyer.”

Frazer recommends consulting a number of real estate agents if you want to add value as they will know what people are looking for in your area. It may be that an extra bedroom or ‘outdoor room’ is more valuable and costs the same to build as a bathroom.

Real Estate Institute of Australia (REIA) Deputy President Hayden Groves says buyer expectations play a key role in the return on investment.

“A quality bathroom is definitely something buyers will pay for if it’s in balance with the overall quality of the rest of the home. It will also be attractive to those homebuyers who don’t want to undertake the renovation task themselves, because it’s a hassle. A renovated bathroom also lends itself to good marketing appeal and helps with your online listing,” says Groves. “Done well, a bathroom renovation will pay for itself in the resale and give you a premium on top that wouldn’t happen otherwise.”

Bathroom budget

A good place to start is to assess your finances and work out how much money you have to spend. Talk to your lender about refinancing, review personal loan options or consider delving into your savings.

The next step is to estimate how much your renovation plans will cost. The Australian Institute of Architects’ Ask An Architect renovation budget calculator can help you get started.

You will need renovation plans to help you draw up a realistic budget.

“A full makeover including tiling, fittings, fixtures, plumbing and electrics can easily cost $10,000 or more. However, bringing a tired and dated bathroom up-to-date with contemporary appeal is very attractive to both buyers and tenants, improving your asking price for each scenario,” says Groves. “It’s important that you don’t over-improve the bathroom at the expense of the rest of the dwelling and everything should be kept in context.”

Building considerations

Along with issues relating to waterproofing and asbestos removal, you need to consider the structural integrity of your property.

“Structurally there is greater risk in older bathrooms, that in ripping something out you will be doing structural damage because of its load bearing,” says Wilhelm Harnisch, Chief Executive, Master Builders Australia. “With bathrooms, particularly where extensive or structural work is being done, home warranty insurance is virtually a must.”

If you are a single-bathroom household you should also factor in the cost of alternative accommodation while the work is taking place, which can be a one- to two-month period.

Have you considered an extra bathroom?

Whether you are deciding between a budget renovation or a luxurious no-holds-barred bathroom update, it might also be worth considering adding another bathroom.

“One bathroom per three bedrooms is a general rule-of-thumb, but that can be improved with an en suite to the main bedroom or just by having an additional toilet,” says Groves. “Equally a two-by-two [two bedrooms and two bathrooms] rental property would be more attractive to share tenants. The trend is definitely towards more bathrooms rather than fewer.

“Three-bedroom/one-bathroom homes are commonplace, but a property boasting an additional bathroom can be a real bonus and attract a better than expected price. As market trends and lifestyles change, three-bedroom/one-bathroom homes will become harder to sell with the value affected accordingly.”