Reno options for new investment property to add value

Hey there

I'm looking at spending approx 25-30k to renovate the following freestanding house floor plan which is currently 3/1/1.



My initial thoughts are:
- houses in the suburb that are 3/2/1 fetch an extra ~30k, houses that are 4/2/1 fetch an extra ~120k
- I'm considering turning the lounge into a master bedroom.
- The laundry, whilst only 2.2 x1.8, could potentially be turned into a second bathroom. I was thinking
shower screen 0.9x0.9
toilet 0.4 x 0.6
basin 0.5 x 0.4
The sewage on the original plans seem to line up:



Happy to consider other options that could potentially be better bang for my buck too

 

Would it be a sensible use of funds to create another bathroom if it is not attached to your master bedroom?

Did you mean to say that you would turn part of the family and dining rooms into the master? Remove the kitchen wall ?

 

If the goal is financial then it just seems like spending money on a really subpar outcome.

 

Comments much appreciated guys!
I was initially thinking putting up a new wall and door in the current lounge room, but potentially a bad idea as noted by Wylie below if locals value living room space over bedroom space.

As for the bathroom it would be optimal to have an ensuite to a new master bedroom, but really just thought the laundry space seems a waste with the appliances able to be put in the garage and easy access to the sewage and water supply in that room.

I would probably be looking at a lot larger budget than 25-30k if I was to extend another master room and ensuite out of the current lounge room. Certainly more if I was to add a granny flat dwelling in the backyard space with another bedroom or two plus another bathroom.

Other than that I'm struggling for ideas and inspiration for value add possibilities!

 

Any thoughts on how I could hit a birdie?!

 

Not really, but my point is actually sometimes (read: often) there isn't actually any way to get that 3:1 return on renovation cost that you really need to make it financially worthwhile.

 

If you were looking for properties that have large and separate living & dining rooms for a possibility of turning one of those into a 4th bedroom for the sake of adding value and/or cash flow, what would you be looking for?

 

Yep I do accept there is a possibility that my goal here isn't feasible. But hoping to squeeze something out!

 

So I have attached pics of the current laundry which I'm considering converting to another bathroom (add toilet, new vanity, add shower). Its always a hassle when someone is in the bathroom and you need it too, I would hope it would add some $ in the eyes of a valuer even though not an ensuite.

Anyone here done non-ensuite adds?

Also attached is the current living area as soon as you walk in the front door with a small odd looking partition..

Thoughts appreciated

 

Where are you planning to put the laundry?

 

I was thinking having the washer and dryer in the garage

 

Garage laundries are becoming more and more acceptable, so it's not a bad idea, but I'm hesitant in your case because the garage is detached from the house and not very big. Can you extend it easily?

 

Garage would be difficult to extend width wise (not enough room for a double), but could do a car port in front).

House wise: there is room to extend from the lounge/kitchen into the front yard?

Unfortunately bedrooms 1 and 3 are raised from the back yard by approx 1.5m so would be difficult to extend there, say for an ensuite or additional bedroom

 

How's this?

 

We've done two 50k - 70k renos in past 12 months (one PPOR one IP) and based on before and after vals we only slightly beat 1:1 return. The year before that we split a very large 2nd living to make a 4th bed in a house it suited, cost 5k, and we made a motza in increased value. It can work well, but for my 2c if it's marginal from the outset, consider whether it's worth the hassle.