we are looking at value adding to our family home before we sell out to a mining company with a 5 yr lease back so we don't have to find a new property in a hurry and we can benefit from our improvements while leasing back . our question today is would a solar system add value to the property
Hi Sharon
Looking through the property investing forum, I saw this link. May provide some comments/insights for you (I haven't looked at the comments though)
http://www.propertyinvesting.com/forums/property-investing/value-adding/...
Cheers,
I think I would pay a premium rental for no electrical bills and I would possibly not negotiate as much about the price if I was buying a house with 0 electricty bills as it would have to be a plus, especially if it was all fairly new.Heading towards the end of their lifespan may be a different story though as it would be just one more thing that needed to be upgraded so then they may actually be a downside to the whole deal. Just my thoughts
I have a friend who has been told by Real Estate personnel that it won't make any difference. However, I can't see that!! We have installed a large system which has eliminated our average annual bill of $2500 to $3000 and infact for 7 months is about $300 in Credit (this will be our first winter so not sure how that will go). Either way it has to be worth something in my mind. If ever I rent this place out I will be coming to an agreement with the new tenants for an increase in rent because of the lack of an electricity bill. My thoughts for what they are worth.
I have looked at a few places with solar as investment properties. They seem to ask no more for having them.
Hi all
We just bought an investment property and only realised it had solar hot water (not quite solar panels but along the same lines....) when we came to do the pre-settlement inspection - the solar hot water wasn't featured in the advertising at all. As we were doing the final inspection, I asked if the panels would be a selling point, with the reply being 'no...they are a personal choice and won't sway people's decisions'
Cheers
We have them and they certainty reduce electricity.
As with everything its all about the marketing.
Real estate agents often have no idea about marketing.
I once sold my own deal over the phone ( I'm in Sydney the property was in Brisbane) for $30,000 more than the agents thought I'd get. They often have their own bias. My property was on a main road accross from police station, I thought it was a benefit and marketed it as one, agent thought it wasn't.
Find another agent or do your own marketing.
To Your Prosperity
Michelle
blog: www.michellethemoneycoach.com
eBook: http://financialfreedomonyourcurrentincome.com
If your tenant is a single or couple or a family this will impact the potential savings due to power usage.
A good friend and experienced electrician advises that if you are going down the solar path to look at a 6kW system minimum....that is Vic based where we don't get a heap of fun year round in the grand scheme of this country.