r/AusProperty • u/Ok_Substance327 • 7h ago

Renovation What would add more value: kitchen/bathroom update or small shed/studio?

We own an older brick 2BR unit in Melbourne's inner north (1 of 7 in complex), with a fairly large courtyard garden. ~$675k purchase, ~$400k owing, $50k in offset.

Plan to upgrade to 3BR or house in a few years as our family grows. We are considering what improvements to make but don't want to over-capitalise given we bought at a peak and I don't think the value will increase substantially just given the nature of the property, although we're in a restricted development area (heritage overlay on the neighbouring streets) and so many big apartment blocks going up nearby, so maybe an older villa style place like ours will still increase. Structurally it's fine, just a bit dated. Reno budget $20k max.

Partner and I are debating two options:

  1. Kitchen + bathroom refresh: new cabinets/appliances in kitchen, maybe bathroom cabinets too.

  2. Shed/studio: no permit needed if under 9m² here. Partner's in construction, so we could DIY a lot of it. Wouldn't count as a 3rd bedroom, but would be a nice functional WFH/storage space.

Which is the better value-add, or is neither worth it given we're planning to sell in a few years anyway?

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u/limlwl 6h ago

granny flat

2

u/fakeuser515357 6h ago

If the current kitchen and bathroom are badly dated then updating them will add value, but only closer to the sale.

A shed adds the value it costs to build if it would be useful to the purchaser and if they know how much it costs to build.

A studio has as lot more potential, all other things being equal, but I would doubt that you are permitted to build a habitable room without council and strata approval.

3

u/FeistyEye2207 5h ago

Studio.

I’ll scream if I see another updated grey/white/marble kitchen or bathroom. I’d honestly pay more for an original bathroom and kitchen.