Australian Property News
How much value does a pool add to your property?
Posted on Thursday, March 06 2014 at 9:54 AM
Thinking of putting a pool in your backyard in Melbourne? It might seem like a lot of money to pay for a large hole in the ground, but according to buyers’ agency firm, Secret Agent, any mini blue lagoon can increase your home’s value by as much as 30 per cent.
A report on pools, written by Cosmo McIntyre and Richard Rossmann, says exactly how much value a pool can add depends on where you’re diving.
“For the right property and location, a pool can be a wonderful addition, as well as a way to add value,” the report says.
“The lowest expected value created by a pool is over $140,000, making it worth the initial investment.”
Pools cost about $1000 a year in electricity, chemicals and cleaning expenses. Factor in general wear and tear and you could be up for a lot more.
However, in a suburb like Kew, $650,000 is the minimum amount a three-bedroom house has sold for. Houses that feature a pool are expected to sell for $450,000 more, which is a premium of about 30 per cent.
Conversely, in Hawthorn, a pool is expected to add only $180,000 to the value of a property, even though the square metre rate is similar to that of Kew.
So a pool’s value is much more complex than dollars and cents and does seem to depend on what suburb the property is in.
“With a swimming pool, the majority of houses gained between 10 and 16 per cent,” the report says.
“Added value was as low as six per cent in Camberwell, or as high as 35 per cent in Hawthorn East.”
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