Is A Swimming Pool A Good Investment?

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Is A Swimming Pool A Good Investment?

When the first blast of hot weather hits, you may find yourself listening to the sounds of splashing over your neighbour’s fence, and think about putting in a pool to keep cool over the summer months.

Is a swimming pool a good investment?

Start by thinking about the area you live in and how your home compares to other properties in the area. If pools are popular, installing a pool may be a good investment to attract potential buyers who are looking at similar properties.

Consider the climate of your area

While a pool can provide welcome relief in the summer months, how much use will it get throughout the rest of the year? If you live in a cooler climate, you may risk a large outlay for a pool build, as well as the expense of ongoing upkeep and maintenance, for very little use.

Owner occupier or tenant

If you live in a hot climate, having a pool at your rental property may make your property more valuable in the rental market. Keep in mind that as the owner of the property, the safety of the pool is your responsibility. Read the new regulations affecting Victorians regarding pool and spa barrier safety.

Will I over-capitalise?

In-ground pools don’t come cheap as you are paying for your land to be excavated before the pool construction even begins. Prepare to pay between $35,000 and $50,000 for the pool itself, with extra costs for paving, pool fencing, council approval (building permits) and ongoing maintenance and cleaning.

Above-ground pools are less expensive and generally cost between $5000 and $10,000. This type of pool is still subject to the same strict safety standards as in-ground pools.

If you are installing a pool to add value to your property, you risk over-capitalising if potential buyers see the pool as ‘nice-to-have’ rather than an essential feature of a home.

 Finding a good builder

In Victoria, there is no special pool building license required for pool construction but the person building your pool must be a registered building practitioner. It’s advisable to engage someone who has industry membership or who has completed specific training in the construction of pools. Don’t be afraid to ask for your builder’s registration number before you sign a contract, and ask to see examples of their previous work.

Ongoing costs

The cost of a pool doesn’t end when the pool build is complete.  Don’t be surprised to see a hike in your water and energy costs once you start using your pool! You will also need to factor in the cost of pump maintenance, pool chemicals and repairs to the pool and surrounding areas, including possible upgrades to the fence and barrier to comply with new safety regulations.

Owner builders

If you have installed a pool – either yourself or using the services of a builder – and you are selling your home within 6.5 years of its construction, the pool and any surrounding elements such as decking or paving will need to be included in an Owner Builder Defects report, also called a 137B report. This is legal requirement as part of your section 32 documentation.

The Home Inspection Hub is fully qualified to prepare these reports.

Why is an Owner Builder Defects Report with The Hub so important?

  • An Owner Builder Defects Report can only be provided by a prescribed practitioner. At The Home Inspection Hub, we have a number of suitably qualified inspectors who can inspect your renovation work and prepare the 137B Report.
  • We can prepare the report on our custom-built iPad inspection app and then send the report straight to your conveyancer if necessary
  • The 137B Report will enable the owner of the property to obtain Builders Warranty Insurance which is required for any domestic work with trade value over $16,000.
  • Under the Building Act, it is an offence to sell your property within the 6.5 year timeframe without a Defects Report and Builders Warranty Insurance. It’s important to note that heavy penalties apply for non-compliance.
  • In addition, if you fail to provide an Owner Builder Defects Report, the purchaser has the right to pull out of the sale agreement without incurring penalties.

Give us a call on 1300 071 283 or submit a free online quote so we can simplify the process and help you finalise your sale.