Experts Reveal How Ducted Air Conditioning Affects Property Value
Ducted air conditioning is incredibly worthwhile if you’re looking to heat and cool your entire home. Or at least a fair number of rooms.
But can ducted air conditioning give you more bang for your buck when it’s time to sell? Let’s find out:
Property Valuation and Climate Control
Having your property valued is an essential step towards obtaining finance, seeking adequate insurance cover, and a valuation is used when dividing up deceased estates.
The good news is that a valuer can take into account a home’s heating and cooling along with aftermarket upgrades like air conditioners and fireplaces. Although, they may only check the age and condition of a system and not a unit’s market value.
Speaking to HomeLight, Appraiser Paul Fonseca said that having the receipts and relevant paperwork handy can help inform a valuer of any recent upgrades or the specifics of a system.
“A lot of times, an appraiser will come and look at an air conditioner, and they’ll see the age on it,” he said. “But it’s different when you tell them, this was just put in…and it was $7,000.”
The relevant paperwork can possibly see a valuer adjust their numbers accordingly. So yes, ducted air conditioning can increase the value of your home. Especially if it’s a modern system, is in good condition and is expected to operate for years to come.
However, property value and an actual selling price are two very different things. Air con may entice a buyer to spend some extra quid. But it’s also possible that air conditioning will not affect sale price whatsoever.
Can Air Con Affect Sale Price?
There’s no denying that ducted air conditioning is an excellent choice for homeowners looking to increase their long term comfort. And yet, there’s little evidence to suggest that a ducted system will net you more money when it’s time to sell.
Property investor and mentor Orsolya Bartalis told RealEstate.com.au that If you can’t see a feature, it’s unlikely to boost your return on investment.
Talking about air cons, Bartalis said: “They are great to have, so if you want to add them to your long-term home, please do so.”
“But do not install them as a selling feature as most people expect they are there and are in good working order.”
Property agent and CEO Craig Heppell supports Bartalis’ claims by stating that while essential in most Australian climates, an air conditioner does not increase property value.
“Adding a nifty split-system for, say, $1,000 does not increase the value of a property by $5,000 as a number of home sellers believe,” Heppell said.
“This type of feature can add to the marketability, not the value.”
So if your home already has a ducted system installed, that’s great! But it’s not recommended that you install one in an attempt to increase the sale price.
Other additions that rarely increase sale price include swimming pools, landscaping, elegant fixtures and insulation.
If you really want to spruik the air con to potential buyers, consider listing a home during summer and having the ducted air con pumping at the open house.
Can I Charge More Rent for Air Conditioning?
We’ve already determined that air conditioning adds value to a home, but can it be used to charge more for a rental property? There’s no easy answer for this one, as rental price is largely determined by market conditions including the prices of similar rentals in the area.
Webbs Real Estate Senior Property Manager Amy Johnson manages a block of units where some have air conditioning while others do not.
Amy told Rent.com.au that “When comparing two units of the same size and in similar condition with the only difference being the air conditioning, we have advertised the unit with the air conditioner at a rental rate $10 higher than the one without.”
Of course, each property is different, but it would take a while to see a return on your investment if an air conditioner is installed for the single purpose of securing higher rent.
So there you have it. A quality ducted air conditioner can increase your property’s value, but it may not affect the sale price or rental income.
This doesn’t mean ducted is not a worthwhile investment. Consider adding a reverse cycle ducted system to your forever home for efficient, year round comfort and maybe equip the rental with a trusty split system if you’re happy with the long term tenants.
Published: 26 Mar, 2021