Brisbane: Cost estimate to add 1 Bedroom and 1 Bath(+ toilet) to 30yr old house

Hi Everyone,

I need help with some ballpark estimates for adding the following to a 30yr old, lowset(on slab), brick veneer home in Brisbane.

1 Bedroom - 4m x 3m
1 Bathroom(including a toilet)

This is an investment property currently with 3bed 1 bath. I want to extend it to 4bed 2bath. The intent is to increase the rental from $380 pw to $410 pw. Attached is the floor plan.

Any help will be much appreciated. Thanks.

 

Which bedroom is the proposed new extension in the floorplan? Top left?

 

Apologies for the confusion. That plan is the existing plan. Bedroom and bathroom will need to go at the back as there is not much space to the sides of the house.

 

What sort of roof is on the building,and do you have a plumbing plan ?.

 

It's seems like a pretty big job for only $30/week increase. I personally wouldn't bother for that return

 

Exactly why I wanted to know the estimate to determine if the job is too big for the benefit.

 

Its a metal roof. Dont have the plumbing plans with me. Not sure if they exist.

 

Just ring up the BCC..If this property is within the BCC footprint then you can purchase the plumbing plan that's one place to start knowing the plumbing layout ..imho..

 

new slab,
new roof extension
electricals
plumbing
permits
new bathroom
new bedroom

off the top of my head im going to say $30k+ easy
$30 increase is $1500 per year, for $30k investment, not worth it remotely for me

will it increase the value of your property by how much?

 

Derp I can't count.

 

With a 20% deposit for 30K loan at the current interest rates, it will be a return of 20% p.a.(considering interest payments as well). So, I would not be writing it off yet.

 

Hari,
How do you work out that it will return 20%p.a.? I'm confused. I'm also interested to know how that works.
I'm guessing...
If you got a PM, some of the extra rent will go to them, around 5-8 percent of it. Probably about 80-100 bucks a year.
Would a renovation loan rate be around 8 percent? Over how many years? 5 year loan is about 5,200 dollars in interest on 24k reno loan. That's 87$ a week in extra loan payments per week over 5 years of the loan. plus monthly loan servicing fee and slightly more tax (let's put that at 3 bucks a week combined)
So far I got an extra 90-100 dollars a week. But it's only 30 dollars extra a week in rent. Will you be negative gearing it somehow to lower your tax?
Am I totally not understanding this at all? Or are you thinking about Capital Gains and then the extra 5.2k interest and 30k loan outlay now will be at least 40k extra down the track?
Thanks.

 

Really good insight! Thanks for that. I will have to check on what properties are around. All I checked was that a 4bed 2 bath was averaging at $420pw.

 

My calculations were based on an investment home loan(new investment) with part of that(30K) disbursed for renovation cost. In which case, my outlay would only be 20% of 30K, which is 6000(banks are ready to accept 12% at the moment). So, with the return of 1200 in rental increase for a year, that makes it 20% return on 6000. BTW investment home loan is at 3.59% with NAB at the moment.

If I had been taking a separate loan for reno, your calculations are spot on and may not be as beneficial.

 

I don't think that's quite right

 

Thanks for the info.

Hi Dan.
Don't most PMs in the Brisbane area take a flat 5 to 8 percent of the rent as payment per month? So the extra 30 bucks per week would come to around 2 bucks at week and around 100 a year... give or take.

 

So how much would it cost me to build a 5m x 5m slab extension on the front of my property to house a large bedroom, ensuite and WIrobe? Water and electricity adjacent.

 

Looking at the floorplan supplied, it cries out to convert the garage as Wylie suggested. Can you fit a double carport in front of the house? This would cost much less than an extension. I wouldn't worry too much about extra living rooms in a suburb where the demographic pays a much lower weekly rent than Wylie's suburbs. A quick check online of advertised rentals in your suburb will show typical floorplans of what is on offer to potential renters at each pricepoint.

 

Re. The bathroom: Is the plan to scale?

If so, you could add an en-suite to the master bedroom - adjacent to the existing bathroom and remove the connecting door to the current bathroom.

Or add a shower and toilet to the laundry?

The cost to add a bedroom extension and new en-suite could easily be much higher than $30,000.