How much does a laundry renovation cost?

Whether you’ve built up a nest egg from your Covid-19 savings or you’re considering selling your property, a laundry renovation is one upgrade that can transform a home and increase its value.

A laundry renovation may cost you anywhere from $5,000 to $25,000 and beyond, depending on the size of your laundry, the extent of the work needed, the materials you want and the appliances you need.

Estimated cost range of laundry upgrades and renovations

Source: RefreshRenovations.com.au

A more affordable laundry upgrade may only require a coat of fresh paint and some more modern hardware, like updated faucets. A more extensive laundry renovation could factor in design and construction costs, particularly if you’re extending the space.

But to make sure you get the greatest bang for your buck, let’s explore the key factors every potential renovator may want to consider for their laundry makeover.

Biggest costs for your laundry renovation

There’s more to a laundry upgrade than trading in your old washer and dryer (although that is an important step). Here are some of the most significant considerations for your laundry renovation that may influence the overall cost.

• Available space

If you already have the ideal space for your dream laundry, consider yourself lucky. One of the most expensive aspects of a laundry upgrade can be making modifications to the space, including taking out built in storage or plumbing or extending walls.

As a rule of thumb, most renovation experts will recommend leaving the plumbing alone when possible and instead focusing on building around the space you have.

A good designer may help you to note all these existing limitations and create a design based on just that - but this may not come cheap. It may be worth looking through inspiration boards, like Pinterest, for ideas on how you can do this yourself.

• Storage options

Your ideal laundry room should have a myriad of storage options, including floating shelves, cabinets, baskets, and hooks. If your current layout has neglected optimising the storage space of your laundry, this may be a factor worth putting some funds behind. Further, increasing your storage options may also help to boost the value of your property, as prospective buyers can never have too much storage.

• Materials

They say it’s all in the details, and this is certainly true of choosing the materials for your laundry renovation. From cabinets, drawers, counters, handles, hinges, tapware, flooring, waterproofing and more, the cost of materials for upgrades big and small will need to be factored in.

And with all things renovations, there are more affordable options available if you’re willing to shop around and potentially forfeit a brand name or more coveted material. For example, tiles are generally more affordable than laminates, and brass or bronze may be more affordable than copper for your tapware.

• Practicality

Not only do you want your laundry room to be aesthetically beautiful, but you also want it to be practical and durable. One of the biggest concerns for a laundry room is moisture, with emergencies, like cracked pipes or overflowing machines, able to cause severe damage. Ensuring you’re prioritising moisture-resistant materials and appliances is a must for your laundry upgrade.

Doing your laundry can also be a noisy affair, so keep the distance of your laundry room from your shared spaces and bedrooms in mind if you’re creating a new space for it. You could even consider soundproofing options, but this may further increase costs.

You may also want to ensure the materials you choose for your flooring and surfaces are durable and easy to clean. Depending on where you live, it may also be worth choosing floor covering that is warm and comfortable if you will be standing in the laundry for long periods.

• Appliances

It goes without saying that when upgrading a laundry room, your appliances can have a serious impact on the final renovation bill. Ultimately, the appliances you choose are a personal choice based on your existing budget. But if you’re ditching your existing washer and dryer and considering buying new, it may be worth factoring in energy efficient appliances to save you money on your utilities bills.

How to finance your laundry renovation

An overlooked aspect of your laundry renovation can be the means to which you access funds to finance your project.

If you’re in need of financial support to boost your renovation budget, there may be three popular options worth considering:

• Home equity

One popular way to help finance your laundry renovation is through home equity. A lender will calculate the difference in the remaining balance of your home loan and current market value of your property to determine your available equity. You may then be able to borrow against this equity up to 80% of the total value, with the lender typically wanting you to keep at least 20% untouched.

Consider using Westpac’s Home Equity Calculator to estimate your property’s market value and find your potential usable equity amount for your laundry renovation.

• Offset account

Many homeowners have been diligently saving for a rainy day through their offset account, with Aussies now almost four years ahead on their repayments, on average. And the latest APRA data shows that the average balance sitting in offset accounts is now around $100,000.

If you’ve been using your offset account, not only have you been helping to reduce the interest charged in your mortgage repayments, but you may be able to withdraw these funds to cover the cost of renovation.

• Renovation loan

Choosing the right personal loan is tantamount in keeping overall costs down. Instead of sticking with your childhood bank, consider comparing your personal loan options carefully, including the interest rate and fees advertised. The lower your interest rate and fewer fees you pay, the more affordable your laundry renovation may be.

For example, if you borrow $15,000 for a laundry renovation, a bank may offer you the average personal loan rate of 11.7%. However, there are some lenders offering interest rates as low as 3.99% for personal loans for some eligible borrowers.

Over three years, choosing a lower rate personal loan may mean a saving of $53 a month, or $1,917 over the life of the loan – the equivalent of a new washer and/or dryer.

Source: RateCity.com.au

Note: Based on a hypothetical 3-year, $15,000 personal loan. Does not factor in rate changes or fees.

While not every borrower may qualify for the lowest personal loan rate, it’s worth keeping this in mind as a guide. Take your time to find your best personal loan option as it might save you big over the life of the loan.

Compare home loans in Australia