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Does Gas add value?

Discussion in 'Renovation & Home Improvement' started by albanga, 24th Aug, 2015.

  1. albanga

    albanga Well-Known Member

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    Hey All,
    I am currently renovating my 1950's home for sale and there is no gas. So I decided to be pro-active and get a gas line installed which has now been completed. They will only now install a gas meter once a plumber issues a certificate of compliance once they connect something.

    So I have had a plumber quote me to remove our old electric hot water system which is taking up A LOT of room in the laundry. Install a new gas hot water system outside and also install a gas line to the cooktop area where I could replace the cooktop.

    The quote is around $3300 not including the cooktop so allowing $700 for that then $4000.

    The extra room in the laundry should add some value but not to the tune of that amount so was interested to hear if people believe having "Gas" will. I read a lot of sale ads and they do seem to highlight this as a selling feature. Not sure it would make me want to pay more of a premium but others may?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    IMHO it makes no difference - solar vs instantaneous gas hws vs electric storage. Gas cooking vs induction.

    It just depends on your target market. Wok cooking is essential for some (electric is a turn off), continuous flow hws for large families etc.

    The space freed up by not having the hws inside is a bigger plus especially if you can add storage.
     
  3. albanga

    albanga Well-Known Member

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    Thanks Scott!
    Pardon my ignorance on this but if instead of going gas I just focused on removing the old unit and replacing it, is electrical hot water services fine to go outside into the weather?
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Agree with Scott - no value-add. Electric off-peak storage HWS are designed to go outside.
     
  5. albanga

    albanga Well-Known Member

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    Thanks for the responses!
    I have emailed back my plumber to ask him to simply quote replacing the existing HWS with another HWS that would be located outside.
     
  6. S.T

    S.T Well-Known Member

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    If selling, as the other guys have said i wouldn't bother as it won't add much at all to the sale price.

    if renting out or as a PPOR, yes - especially if you wanted ducted heating too.
     
  7. AusMover

    AusMover Well-Known Member

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    Hi Albanga,

    My views ...

    Gas cooking is much more convenient than induction or electric. Induction brings restrictions to the type of cooking utensils that can be used, and electric cooktop takes ages to heat up/ cool down.

    Not to mention that electric cooktops are the hardest to clean for a spill....

    From a tenant's perspective... Gas cooktoop is a definite plus and a value add to the property.... For me, it is the first primary filter while looking for rental properties...

    Not very sure about electric water heaters, but one of my rental places had them and the hot water used to run out after a bath and some washing...... Gas water heaters gaurantee a constant hot water supply on the other hand...

    Pretty sure the same features would prove a plus when you sell as well, particularly if your potential buyer is from Asian background.... Asians love cooking and gas cooktop would be a definite plus in the sale advert for them...

    Also, if your property is competing in the market with other similar properties nearby, and yours has gas systems including gas cooking, this factor would beat the ones with electric... provided other major factors are alike ...

    Again... just my opinion...

    Cheers
    Ausmover
     
    Last edited: 24th Aug, 2015
  8. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Even if you don't go ahead with completing the gas into the house, won't they still bill you for the gas line extension in the street?
     
  9. JDP1

    JDP1 Well-Known Member

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    does gas add value? yes because it will likely be sourced from QLD and we are trying to hype Brisbane.
     
  10. datto

    datto Well-Known Member

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    I don't know if it add values but it sure makes my tummy bloat. Oh, I might light this one up.
     
  11. Sonamic

    Sonamic Well-Known Member

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    Gas saves electricity. That's a value add. Same as solar.
     
  12. Esh

    Esh Well-Known Member

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    I think for cooking gas adds value, I suppose it makes a massive difference where it is located.

    I can speak for Western Sydney- I think it makes a massive difference. I've come across many people who prefer only gas, most being Chinese and Indians.
     
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  13. albanga

    albanga Well-Known Member

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    Hey All,
    Thanks for the awesome replies. I am just awaiting the quote for electric hot water instead and then I will throw both quotes up.
    I have no doubt gas is superior and if it were only a small amount then it would be a no brainer. Given I am only doing this for sale then I need to be confident spending X will return Y.

    @Ace in the Hole, no a gas line costs nothing to have or to get connected. They do however destroy your garden which thankfully for me is non existent as I am landscaping it. They can only bill you when they attach the gas meter.
    First they install a line only, then they require a plumber to sign off a certificate of compliance and only then will they install the meter to start taking consumption.
     
  14. larrylarry

    larrylarry Well-Known Member

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    I share @Esh view. If I'm renting, gas stove will be preferable. When we bought out PPOR last year we changed from electric to gas.
     
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  15. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    When I was a renter I had a strong preference for gas cooking and hot water.
     
  16. Lisa Parker- Buyers Agent

    Lisa Parker- Buyers Agent Well-Known Member Business Member

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    I would not buy a property for myself which did not have gas and a lot of owner occupier share this view. If the resale of the property is to owner occupiers then having gas removes a buyer objection, which may create more interested parties vying for your place. It would depend on a few factors if this would result in an increased return for your time and financial input.


    Storage is always a good thing, so moving outside would potentially add value in certain price brackets.

    If you are holding the property for rent, it is possible it will make no difference, however a quick call to a few local managing agents should guide your decision pretty quickly.
     
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    I had a great laugh this morning. A parcel of land which we sold with DA has been lodged for S96. Our DA was pre-basix. These guys have included gas appliances to meet basix.

    All well and good until you do your Due Diligence (Dbyd) and realise that there's no gas in the street (a few hundred m away).
     
  18. Be Developer

    Be Developer Property Developer Business Member

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    As others said wouldn't add value!

    Even Indian and Chinese won't care as much now, as it only cost about $1100-$1500 for gas bottle installation.

    It will all come down to area, product and price.