Ensure you never miss an issue of the
real estate business bulletin
Avoid the over-capitalisation trap: Swimming pool profits and perils

Avoid the over-capitalisation trap: Swimming pool profits and perils

Avoid, caution, warning
by Tim Neary 1 comments

South-east Australia is bracing for another heat wave, so it’s wise to consider the financial benefits, or not, of building a swimming pool to cool off in the warmer months. However, just because they have one, home owners shouldn’t expect the value of their property to rise automatically.

According to Gil King, CEO of the Real Estate Institute of Victoria (REIV), the additional value a pool can add to a property is dependent on a variety of factors, such as the type of property, the current landscaping situation and the size of the garden.

“A swimming pool is likely to add greater value to a family home rather than a smaller property suited to downsizers,” Mr King said.

The location of the property, the CEO adds, is another vital factor, as some areas — which include the Mallee, Northern Country, North East and the Wimmera — can have summerlike temperatures before or after the season.

“If you’re thinking of installing a pool, look for a design that suits your backyard and doesn’t overwhelm your garden,” Mr King suggested.

“Given the variety of pool sizes and shapes now available, a pool can be incorporated even in areas where block sizes are decreasing.

“A pool should complement a property with clever landscaping integrating indoor and outdoor living space, ensuring safety barriers comply with local and state standards is also installed, particularly if the property is being rented out.”

While pools can add value, they can also over-capitalise a property and lose out on sales to comparable homes that are pool-less.

“A local real estate agent will be able to provide home owners with advice on comparable sales in the area, both homes with and without a pool,” Mr King said.

“For vendors, the presentation and maintenance of your pool will go a long way to determining how much of an asset it is when it comes time to sell. A neglected pool can be an eyesore, so ensure the pool is vacuumed and clear of leaves and other debris.”

If investors are interested in adding a property with a pool to their portfolio, Mr King stressed that it is important to check that the fencing is compliant with the local council, as repair or replacement may end up being costly.

Avoid the over-capitalisation trap: Swimming pool profits and perils
lawyersweekly logo
promoted content
Recommended by Spike Native Network
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?