While kitchens tend to get the maximum attention from renovators, upgrading your bathrooms is a good investment that’s likely to pay off in the long term.
Bathrooms are crucial to any house. They aren’t just functional spaces, but areas reserved explicitly for self-care. Therefore, it’s only fair that a bathroom is as stylish and comfortable as the rest of your house, and buyers certainly value an impressive bathroom.
How much value can a bathroom upgrade add to my house?
There’s no fixed answer to how much value will a bathroom upgrade add to your house, as the exact value will depend on the condition of your property and the changes you include in your renovation. The good news is that you don’t have to spend thousands of dollars on upgrading your bathroom to add value to your house. Even small changes, when implemented strategically, can provide a high return on your investment.
Three budget-friendly bathroom renovation ideas for 2022
1. Change worn-out fixtures
If you only have the budget to make a few changes, start by replacing the old, worn-out fixtures in your bathroom with new, energy-efficient fixtures that will instantly transform the space and earn you some good karma by saving water.
Build, an independent online authority on building and renovation for Australians, says that functionality and eco-friendly are top of the list in 2022 for home buyers. Therefore, implementing a green design by switching to water-efficient and energy-efficient bathroom fixtures could be the right move in 2022.
2. Regrout the tiles
If you want to create a sense of a complete upgrade without going all the way, re-grouting your bathroom tiles can brighten up the room and add value by removing various signs of ageing, such as discolouration and stains.
If you are going a step ahead and also plan to change the tiles, two colour palettes are likely to dominate this year, according to the popular Better Homes and Gardens website. They are: relaxed and earthy tones of greens, clays, blues and light stones; and, darker moody shades, such as timber, greys and marble.
3. Build some functional space
Functional space is a key aspect that buyers look for in a bathroom. If your bathroom has a poorly designed layout with inadequate storage, it can bring down your property’s value. Thus, renovating the bathroom to build functional spaces, like vertical wall cabinets, can boost the property’s overall appeal.
Replacing your old vanity with a new one is another way to upgrade the space instantly. A wall-mounted floating vanity generally helps in creating an illusion of space by adding more floor area. It’s all about considering what your bathroom already has and what would make a difference.
Tip: Turning an outdated bathroom into a modern one is an exciting task, but it costs money. A budget bathroom renovation can see you shelling up to $15,000, which is why it’s worth consulting an expert before jumping to choosing the latest tile or bathtub design so that your project turns out just the way you dream it.
Funding your renovations
Depending on the scale of your renovation project, you may need to borrow money to pay for it. One of the options you have is using your home’s equity.
Equity is the difference between the amount you owe on your home and what your home is actually worth. Equity can build up over time either because your house has risen in value or you’ve paid down your loan balance. Investing home equity money into a high-value home improvement helps increase your home’s equity, and you can use the added equity to borrow more money against your home.
Calculating the amount of accessible equity
The amount of equity you can access to pay for your renovation depends on how much your lender will let you borrow. Most lenders will allow you to borrow up to a maximum of 80% of the property’s value. You can calculate your maximum usable equity as the difference between 80% of your home’s current value and the amount owing on your mortgage. However, to decide on the exact percentage, the lender will evaluate your credit score, past payment history, and your total amount of debt. Generally, the lower your debt and the higher your credit score, the higher the percentage they will be willing to lend you. Still, every lender has different standards and policies for evaluating loans and the amount you may be allowed to borrow from various lenders may differ.
If you have queries around a home loan product or want to learn more about using your home equity, it could help to speak with a broker or ask a Hashching expert for their opinion.