Adding 2nd bathroom feasibility

Hey guys, I am looking at converting a study into a bathroom. The extra bathroom would be quite useful in a 4 bedroom house

Does anyone have any formulas or rules to asses if it is worth doing?

Eg If the bathroom costs $15k and increases rent by $50 per week then it would take a bit under 6 years to pay for itself. I suppose that is ~17% ROI

Other positives would increase house value & more desirable to tenants. The extra bathroom would suit the family demographics in the area, genuine 4bed 2bath are in short supply

Negatives would be $15k could be put towards another deposit

Any thoughts?

 

It may or may not increase the rent but may reduce the number of weeks for a vacancy.

 

Speak to your accountant. There may be tax advantages in adding a second bathroom that you have to factor in. So instead of 6 years to pay for itself, it may be less.

 

What does the Wife think..

 

I had a massive solar system installed on the basis of what the sales guy told me. Great terms on vendor finance, no questions asked.

Told me that these babies would pay for themselves in 5 years.

I took them up on the offer.

After 2 years they tried to bankrupt me

I went back over the offer, checked that they would pay for themselves and told the debt collector to go jump.

He asked me why?

I replied "look at the advert, they're going to pay for themselves. Not my problem guys".

 

For me, a 4 bedroom 2 bathroom house would be far more attractive to renters or buyers than a 4 bedroom, study and 1 bathroom house.

 

How much would it cost you to dig the floor up to add the 2nd bathroom? I’m assuming there is no plumbing at the moment? $15k cover this as well?

 

The house is on stumps, no need to dig through a slab. Just bringing the new plumbing through the floorboards. The laundry is nearby so extra plumbing isn't overly extensive

 

Then if the study is in a location where a bathroom will not look odd, it sounds like a good idea.

 

Ohhh that’s much easier. I’m always wondering how much it will cost to add a second bathroom which means digging up the ground.

 

Didn't use a formula, but recently added a 2nd bathroom to a low set house. We were already going to update the other one. Quicker and higher rental, and expect to sell in a couple of years so wanted a higher and quicker sale then. In the meantime, deprec and interest deductions.

 

How much did that cost to add the 2nd bath? Assuming its a bath and a toilet. I am planning to do the same. Also, was this in Brisbane area? Thanks.

 

At a guess about 14k. We combined a large laundry and toilet into the family bathroom and turned the previous bathroom into the ensuite. That includes everything - tiling, plumbing, building works, elec, etc. Also included a new ceiling.