Do solar panels add value to a home?
Yesterday we talked about whether or not swimming pools add value to a home.
Today I want to extend that to a solar panels as well because a lot of people are looking
at getting solar panels installed or already have them installed or previously installed
them in the past and now they want to sell their property . So I want to look at whether
or not do installed panels do add value and what we're looking at.
Hi I'm Ryan Mclean from PositiveCashFlowAustralia.com.au.
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it will redirect you right there as well.
So that eBook is a great resource, check it out!
So, solar panels- do they add value to our property or not?
The general consensus is that like pools, solar power is unlikely to increase your house
price significantly but firstly let's just say solar panels are very unlikely to reduce
your house price.
When we look at pools in some cases a pool can actually reduce the value of your home,
with solar panels that is unlikely to happen.
Really the only major downside of solar panels is the aesthetics and the fact that house
might not look as good but in terms of being appealing to buyers I think that is very unlikely
to put people off your property by having solar panels on it.
Obviously, speak to your local real estate agent to find out more.
Property buyers are unlikely to quantify the savings of solar panels and therefore add
that to the value of the property.
They are more likely to look at it and say �Oh yeah, it�s got solar power great,
this one doesn't�.
You know, they are not necessary going to say �This property has solar panels, I need
to buy this property because it has solar panels and I'm going to add 20 000 dollars
to the value of this property because of the solar panels�.
Currently in the current market I just don't think that people buying properties, property
consumers are actually thinking like that.
Obviously you can speak with your real estate agent to get more details on it.
Solar panels may appeal to some green buyers and obviously there are some buyers out there
who will look at solar panels and who will think �Well okay, that's going to add a
bit of cost savings�.
But it is more likely to put your house above similar properties in the same price range
rather than shoot the value up.
So, you have two properties of 400 000 dollars they are pretty much exactly the same but
one has solar panels and the other one doesn't.
People might look at one for 400 000 dollar with solar panels but they are not necessary
going to say �We've got two houses that are the same but one has solar panels so now
that's worth 450 000.
That does not necessarily work like that.
So solar panels are unlikely to be a deciding factor in people's purchase of the property
at this stage in the game.
Very few home buyers know enough about solar, know about how much money they are going to
save, how it works with the whole grid system and when you are selling power back to the
grid and all of that sort of stuff.
So they don�t know enough about it to be able to quantify it and add value to it.
So solar isn't going to add more than it is actually costing you.
Just like your pool, do solar for personal reasons not necessarily for financial reasons
in terms of capital gain or in terms of selling your property but obviously for personal reasons
there is added benefit that they are green so you feel better and you sleep better at
night but you are also saving money on your electricity bills.
If you are looking out to put a solar on your house then assess it from a personal stand
point and financial stand point and the terms of how it works for you rather than looking
and saying �Oh if I set solar it is going to increase my equity by x dollars�.
If you need more information then go ahead and speak to your local real estate agent
who knows the market, who sells properties day and day out because they will know whether
or not it is likely to increase the value or not .
I will just leave you with this thought and there is potentially better ways to spend
money and gain equity than spending it on solar panels.
So if you have fine enough amount of money that you want to use for renovation to increase
the equity value of your property then you can spend that money in many different areas
of the property- You can spend it on the kitchen, on the bathroom, you could add a deck, you
could add a room, there is many different things you could do to add value to that property
that may be more beneficial than adding solar panel.
I will just leave you with that thought.
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stuff like that then launch Positive Cashflow tools on the first of March.
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So go ahead and check it out until tomorrow when the next episode comes out, stay positive!