Adding Equity Through Solar Panels?

Viewing 8 posts - 21 through 28 (of 28 total)

« 1 2

Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
May 8, 2012 - 12:46 pm
Different rules for different states by the sound of it Janine.
Jpcashflow
Participant
@jpcashflow
Join Date: 2007
Post Count: 575
May 8, 2012 - 11:47 pm
I agree with IP Freely 100%,
No houses are exactly the same!!!
When a valuer goes to value a propert the rental income does not have any postive or negative effect, The reason why?? rental agreements for each home may be different, One person may pay $50.00 a week more but maybe they only have a 6 month agreement or some one might be paying $75.00 less per week but have commited to a two year option.
Bugee how much value will it add? I think different valuers will value it differently….
Also is your home still worth what you paid for it three years ago? thats the another question as well…
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone Me
Your first port of call in finance :)
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
May 9, 2012 - 1:53 am
Perhaps I didn’t make it simple enough, sorry folks.
The reason I chose to use a hypothetical example and said the magic words “all other things being equal”, was to create an example in which we could isolate only one single aspect of a property and examine its effect on valuation.
So I was only looking at the topic – the effect of the solar system on the property’s value.
Please let’s not scuttle the comparison and discussion by then saying that no 2 properties are identical, we all know that already, so don’t miss the point entirely.
Just isolate the solar system and its effects on the property as I’ve tried to do and estimate what you think the effect of an extra $75 per week rental income would be.
Obviously a tenant will appreciate free electricity if the landlord offers the property with elec included and will pay more rent.
Vacancy will be lower because it’s a sweet deal for a tenant and discourages moving, and would make tenant replacement easier.
Relet fees and advertising costs are lower with less tenant turnover.
What do you think ?
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Me
selling motels in NSW
IP Freely
Member
@ip-freely
Join Date: 2008
Post Count: 353
May 9, 2012 - 7:58 am
The tenant cannot see past the end of their nose when it comes to running costs. They’re more interested in getting the rent down than worry about power costs why else would you want a/c?
v8ghia
Member
@v8ghia
Join Date: 2005
Post Count: 871
May 9, 2012 - 1:01 pm
bugeye23 wrote:
The angle i'm coming from here is I don't want to sell my property in the near future but want to see if the banks would recognise the value difference in my property with a income producing asset added to my PPOR? Because what the bank values my house at and what the market would pay for it are 2 different things..
Hi Bugeye – the short answer is no. As valuations go on comparable sales data, which of course will depend on houses in the locality that have sold that are 'similar' and both have or have not got this addition of solar panels, it will make minimal if any difference to a valuation.
I have seen the most environmentally built houses that owners think are worth three times what they really are just for the way they have done them (nice to if you like that style) but essentially a 3 bedroom 2 bathroom house on 2 acres with a lock up shed in Bouganville will be worth $XYZ with a slight variation depending on date build, street appeal, condition etc rather than solar panels.
GO for it though if the actual sums add up for you to save money!
Cheers
investorjohn
Member
@investorjohn
Join Date: 2012
Post Count: 5
May 17, 2012 - 3:12 am
bugeye23 wrote:
2. whoever buys my house in the future would never have to pay for electricity again.
Who knows? Maybe I’ll be the one to buy your house in the future! I’ll never pay for electricity again.
a_d_r_i_a_n
Participant
@a_d_r_i_a_n
Join Date: 2011
Post Count: 19
June 5, 2012 - 12:16 am
v8ghia wrote:
bugeye23 wrote:
The angle i'm coming from here is I don't want to sell my property in the near future but want to see if the banks would recognise the value difference in my property with a income producing asset added to my PPOR? Because what the bank values my house at and what the market would pay for it are 2 different things..
Hi Bugeye – the short answer is no. As valuations go on comparable sales data, which of course will depend on houses in the locality that have sold that are 'similar' and both have or have not got this addition of solar panels, it will make minimal if any difference to a valuation.
I have seen the most environmentally built houses that owners think are worth three times what they really are just for the way they have done them (nice to if you like that style) but essentially a 3 bedroom 2 bathroom house on 2 acres with a lock up shed in Bouganville will be worth $XYZ with a slight variation depending on date build, street appeal, condition etc rather than solar panels.
GO for it though if the actual sums add up for you to save money!
Cheers
I agree with v8ghia
I had a valuation on one of my IPs late last year, and was chatting away to the valuator. Conversation got onto solar panels and there value, but until they are more common they will not add much to valuation figure. They estimated within the next 5 years they will be more an added value of your IP.
Cheers
mattsta
Participant
@mattsta
Join Date: 2011
Post Count: 604
June 17, 2012 - 3:42 pm
i think you're probably better off with more cosmetic renovations – alot of buyers and renters base decisions on what they see and their emotional feelings about that…
i think you should also consider the demand for houses with solar panels in your area…