Did you know making eco-friendly home improvements are not only great for the environment but can also add value to your property and can help you save money over time?
Energy efficient homes perform better on the market.
In this competitive market with costs continuing to rise, potential buyers are starting to search for eco-friendly features as a way to save money down the road.
Domain’s 2022 Sustainability in Property Report found that an Energy-Efficient (EE) homes have greater buyer interest, spend less time on the market and sell for around $125,000 (17.1%) higher price than non-sustainable homes.
The Nationwide House Energy Rating Scheme (NatHERS) uses a scale of 0-10 stars to measure the energy efficiency of homes. Higher star ratings are often a strong selling feature and can help in the marketing for your home when it is up for sale, further increasing the potential value of your property.
As the cost of living continues to rise, we are seeing a trend of buyers beginning to prioritise eco-friendly features due to the environmental benefit as well as the reduced cost of running their home.
Eco-friendly upgrades that are popular with buyers.
If you’re a property owner, your home is probably your biggest asset and ensuring it grows in value is a significant part of your financial future. Below are 3 eco-friendly upgrades you could install which can increase your properties value and is popular with buyers.
Insulation, sealings and glazing
Heating and cooling account for 20% to 50% of energy usage in Australian homes, so good insulation is essential to minimise warm or cool air loss. Homes with proper insulation are extremely energy efficient and will shield your home from being affected by extreme weather, meaning you won’t need to run your aircon and heater all year round.
In winter, up to 25% of a home’s warmth is lost through leakage with draughts and no insulation. Window glazing and sealing can also useful methods to help stop your heating and cooling efforts from leaking out of the home.
Solar Power
As energy rates continue to soar, many Australians are becoming aware of the cost saving benefits associated with solar energy.
A 2020 Origin Energy survey found that 77% of Australians think a house with solar is more valuable than those relying on traditional energy sources. With 57% of homeowners saying they would pay up to $10,000 more for a home equipped with solar.
Having solar panels will not only allow you to enjoy reduced energy costs but will also give your property an edge against properties without solar panels.
Water Tanks
Installing a water tank can help your property become less reliant on the local water supply, hence, keeping your water bill down. Water tanks will be particularly attractive in homes with large gardens or in drought-prone areas as owners will be able to better maintain the property and reap the benefits of lower bills.
If you have properties in other states such as Queensland and Victoria, there are rebates for water tank installations. In the ACT, if you are building, redeveloping or significantly extending a property, you need to demonstrate how your plans meet a 40 per cent water efficiency target imposed by the ACT Government. Water tanks are an easy and cost-effective way for new builds to meet this target.
Refinancing for sustainable home improvements
Eco-friendly home upgrades are great for the environment and your wallet, but they do require initial upfront investment before you can start to reap the rewards. One option to finance your eco-upgrades it to unlock the equity in your home through refinancing.
Refinancing is the process of taking out a new loan to replace an existing loan. This new loan typically has new terms and additional benefits, such as lower interest rates or a more convenient repayment plan. To learn more about refinancing check out our previous blog post here!
With house prices still at a 20 year high in the ACT, now may be a good time to consider doing so.
We’re here to help
Does refinancing sound like the right option for you or something you may consider down the road? Come in and have a chat with one of our experienced brokers so we can explore if refinancing is right and if you can unlock your equity to find your eco reno! To book an appointment email us at enquiries@dominionfinance.com.au or call us at 6162 2740.
*** This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. ***
