Extra toilet and Garden Shed

[blessme]

Hi All,

I've been told by my builder to add an extra toilet on the laundry for 2500$ and a garden shed (1000$) to add an extra value to my IP. My question is, Is it worth the money to add extra toilet and Garden Shed?Will bank value it as much as my spending?My goal at the end of the day is to top up my loan by doing this renovation. I've also been advised by my PM to add an extra air conditioner for 1500$ (I'm a bit reluctant in adding air conditioner because of my concern of the running cost in maintaning it)

 

[Joe D]

You need to tell the whole story before anyone can give you a reasonable answer:

Where is the IP?
how many bedrooms/ bathrooms?
approx value?

If you are in suburbia and currently have a house with at least 2-3 bedrooms and only one bathroom/wc then $2500 is a very worthwhile spend for a second WC.

Shed is debatable, but $999 spent on a removable shed can be tax deductible in the current year under the LVP (low value pool) so also could be a reasonable option IF it adds to the rental value by at least $10pw.

 

[blessme]

The IP is in 2770, 3 bedrooms and 1 bathroom. Approx value is 300K i guess

 

[datto]

The IP is in 2770, 3 bedrooms and 1 bathroom. Approx value is 300K i guess

Welcome to the Druitt brother.

I think its a good idea for both CG and rental. In fact see if you can squeeze an extra shower with the toilet. And if you dont have a garage, make that garden shed a garage instead.

I personally have a rental property in 2770 so I know the area very well.

 

[Angel]

As long as there are no mice, geckos or cockroaches eating the wiring in an air conditioner (they also like to destroy the wiring in washing machines), they will cost you nothing to run or maintain. The tenant pays electricity and the newer ones are very economical. I cant speak for your suburb, but here in Qld they are worth an increase in rent.

 

[blessme]

@Datto

What do you think of the air conditioner?Do you have any problem someone stealing the external unit?Does your property has an aircon?

@Angel
Thanks for your response, I'll keep that in mind. Is it better to get the split air con or the window unit?

@Joe D
thanks for your response, I don't think someone will pay an extra 10$ for just a garden shed. I'm still considering the toilet and expecting bank will give an extra value for it

 

[Hobbit]

Good thread, Ill keep reading

 

[westminster]

Hi All,

I've been told by my builder to add an extra toilet on the laundry for 2500$ and a garden shed (1000$) to add an extra value to my IP. My question is, Is it worth the money to add extra toilet and Garden Shed?Will bank value it as much as my spending?My goal at the end of the day is to top up my loan by doing this renovation. I've also been advised by my PM to add an extra air conditioner for 1500$ (I'm a bit reluctant in adding air conditioner because of my concern of the running cost in maintaning it)

If the shed is a temporary structure, ie not bricks and mortar then the bank will not value it as you can take it away at any time.

I would add toilet and air con.

 

[marg4000]

I would focus on the toilet as this will be difficult and/or expensive to add later. As there is only one bathroom this would definitely add value (plus desirability for tenants).

You can install an air conditioner or a shed at any time.
Marg

 

[datto]

@Datto

What do you think of the air conditioner?Do you have any problem someone stealing the external unit?Does your property has an aircon?

An A/C is an excellent idea. I must have missed this point from your post.

When I bought my house in the Druitt back in the late nineties it already had an A/C. Its a vintage, I'd say mid 1970s. Console in the lounge room, with motor/compressor directly behind (from the front of the house it looks like a monster, about 2 metres tall).

No one in their right mind would steal it lol. Nowadays you can place the motor at the side of the house behind the side gate/block off where its out of sight.

My A/C doesn't work too well so its not part of the lease. I'm too stingy to get a new one.

 

[skater]

You won't get a higher valuation for any of those things. You will get it rented faster with A/C though.

We've got a few in the area. None of them have two toilets. They all have sheds and they all have A/C.

 

[macca446]

Hi All,

I've been told by my builder to add an extra toilet on the laundry for 2500$ and a garden shed (1000$) to add an extra value to my IP. My question is, Is it worth the money to add extra toilet and Garden Shed?Will bank value it as much as my spending?My goal at the end of the day is to top up my loan by doing this renovation. I've also been advised by my PM to add an extra air conditioner for 1500$ (I'm a bit reluctant in adding air conditioner because of my concern of the running cost in maintaning it)

Firstly adding these to your property in 2770 will not add extra value but it would when seeking a tenant make it more desirable as at the moment their is a glut on the market to lease,when I bought one of my properties here the garage had been converted to a so called in law/ kids retreat as it is not council approved under the granny flat code,I put toilet but it already had a a/c in the garage I have always had this property snapped up to lease for this reason.So the end of the day unless you are selling or cannot lease it which I doubt it I would not at the moment,if you do go ahead with A/C as far as running cost/maint just do not buy cheap like from bunnings spend that bit more and you will have no troubles.
Macca446

 

[datto]

Air con etc wont affect valuation?

In the real world you will be able to get a better selling price though (valuers live in a dream world where their master must be served)

Picture two similar houses. One has aircon, garage, 2nd toilet etc. The other hasn't. Which do you think will attract the better selling price?