Now that the hot weather is well and truly here, wouldn’t it be marvellous to have your own swimming pool in the back yard? Not only are they a great way to keep cool in summer, they make great entertainment for the kids and can be a stylish addition to your home. However, as a home owner, there’s more to consider than just keeping cool and having fun. Below are some questions to think about before taking the ‘plunge’.
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Why do you want a swimming pool?
It’s true that adding a swimming pool to your home may be considered an investment – but is it an investment in your lifestyle or your future?
You may consider adding a swimming pool to your home for the benefit of family and friends, to make it more attractive to renters, to increase your home’s value, or to make it easier to sell.
Whatever your primary motivation may be, most home owners will be concerned about adding value to the property, as your home is likely to be one of the biggest investments you’ll ever make. We therefore recommend that you seek professional advice before going ahead with your swimming pool plans, just to make sure you don’t overcapitalise or buy a pool that isn’t right for your property.
Who is the target market for your home?
Many people love swimming pools and homes that have them can be very attractive to families with older children – so if they are your target market you may want to go ahead with your backyard oasis plans. Pools are also a great idea for investment properties that are rented out as holiday homes, as people may look for a pool when making their selection for a place to visit in their time off.
Busy professionals and property investors, however, may prefer a property without a swimming pool. This kind of purchaser tends to look for a property that requires as little maintenance as possible. Tenants have been known to neglect home maintenance and may not be prepared to take the time and trouble to keep a pool sparkling clean – so if tenanting the property will be the eventual goal, a pool may not be a good idea.
Are pools popular in your location?
Another factor to consider is the location of your home. For example, if your property is in an area that is already popular with families – close to good schools, universities, sporting facilities and other amenities that families require – then a pool could make your home even more attractive.
Outer suburban properties that are in a hot weather location and are some distance from the beach may also benefit greatly by the addition of a swimming pool. If adding a pool will also add a measure of convenience, then so much the better!
Another thing to consider about the location is your local climate. A swimming pool in a place that is prone to very hot weather will get a lot of use. But if the property is in a location that has a cooler climate, then adding a swimming pool may not make good sense.
Will it add more value than it costs?
The answer to this question will differ in every case and has much to do with the pool you choose and how well it integrates with your existing property. As with any home improvement or renovation, it is important not to overcapitalise – if you spend too much money, you may not get back the cost of your renovation when you sell.
Pools come in a huge variety of shapes, sizes and price points. The trick is to choose the one that will suit your particular home and budget. To help you to determine how much you should spend, you could do some research to compare the values of homes in your area with and without a swimming pool. This will help you to create a realistic budget and avoid spending too much money.
Local real estate agents may also be a good source of information. You can show them your plans and ask them to give you an opinion on the value of your home before and after the pool is installed so you can see if you’ve got the budget right. They’ll be able to tell you whether adding a swimming pool is a good idea or not, according to what their buyers want and also give you an opinion on the style of pool you should choose to make sure it does not detract from the value of your home.
Would other renovations add more value than a pool?
If your primary concern is adding value to your home, then you may want to consider whether other renovations would add more value than a swimming pool. Does your home need a new kitchen? Have you considered adding another bedroom or a second bathroom for example? Is the home fitted with up-to-date, energy efficient appliances? These kind of improvements may be more important than adding a swimming pool in terms of value.
If you want to add a swimming pool to your home, or would like to make other renovations to facilitate your lifestyle or add value, then we’d love to help. There are several different ways to arrange the finance and we can help you to decide which one is the right option for your particular financial circumstances and goals, then help you to get it all set up. We can also provide you with referrals to other professionals you may need for advice. We’re here to help you with all your property plans and dreams, so please give us a call today.
MORTGAGE FOCUS | JANUARY 2016
The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)
Phone: 07 3378 2056
Fax: 07 3378 2069