Perth - Swimming pool

Discussion in 'What to buy' started by Alex AB, 8th Oct, 2021.

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  1. Alex AB

    Alex AB Well-Known Member

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    What do you guys think about having a swimming pool for IP in Perth? I have been avoiding properties with a pool but would be keen to hear your thoughts for property around 600-800k range.

    I think a swimming pool would be good (or even expected) for 1m+ property as higher end tenants might want it; and for lower end like 400k then a pool is probably more hassle than it is worth.

    But what about those in the 600-800k range? Does a pool add value for sales later? For rental, perhaps we can get $10-$15 more a week to cover the maintenance cost (but still a hassle though and dont make any extra $), but if it adds value later then worth considering.

    Thanks.
     
  2. jaydee

    jaydee Well-Known Member

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    Swimming Pool in IP- definitely not!

    If you think this is a good idea buy in a strata complex where at least the cost and liability is shared.

    BTW, I also don't recommend strata complexes.
     
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  3. Rex

    Rex Well-Known Member

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    I have a pool in a $400K IP and I wish I didn't. Not worth the hassle IMO but you are right if you can attract a better quality of tenant then you'll have less chance of problems. Most tenants won't keep up with the maintenance and it will go green, water level will also drop too low from time to time (not that you can every prove it) which will burn out the pump quickly. My recommendations:
    - Preferably avoid IPs with a pool
    - If you do have one, include monthly pool maintenance in the rent (achievable in the current Perth rental market) to minimise issues
    - Budget for mininum $1,000/yr extra maintenance cost to replace pumps, chlorinators, filters, covers, liners etc due to misuse / wear & tear
     
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  4. MTR

    MTR Well-Known Member

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    Rookies mistake, I did it 20 years ago. Ongoing headaches
     
  5. Rex

    Rex Well-Known Member

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    It was my first PPoR and we converted it to an IP when we upgraded. Pool was great while we lived there but now dealing with ongoing fixing the pool due to lazy tenants is such a PITA I want to sell the place.
     
  6. MTR

    MTR Well-Known Member

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    Ok I get this
    My mistake was not getting the pool inspected on purchase. It was old and needed upgrading/repairs, ongoing costs
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Just fill it in if the location and house are good.
     
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  8. Alex AB

    Alex AB Well-Known Member

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    Thanks all. So I stay with my current thinking that avoiding it if possible then.
    But if I read it correctly:
    1. Best to avoid it
    2. If all are ticked, budget for 1k per year to run it.
    3. Or 15k to fill / remove it

    It seems pool does not add to sale price even for owner occupied either?
     
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  9. sydney sid

    sydney sid Well-Known Member

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    I remember looking at a possible IP with a pool. It turned me off it. But in researching filling it in or removing it, I remember it wasn't such a simple task and from memory you're not meant to fill them in as it can cause ongoing problems with regards to soil/ground movement. But research this yourself. And removing was quite costly from memory. But if it ticks all the boxes besides the pool, then I guess factor in this removal cost.
     
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  10. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    I have a pool at one of my properties in Perth but it was never meant to be an IP, it was going to be a PPoR but never ended up moving and kept the house. A pool in an IP is a no-no generally and I would never deliberately buy one as it's a complete pain in the backside, probably sucks the most out of my maintenance budget as anything as is theoretically an additional liablity issue.

    Cleaning costs are around $80 a month and the tenant pays for chemicals but with my latest lease and the rental market in Perth my tenant also agreed to pay cleaning costs. Something is always broken or breaking and I don't think it's really worth the headache and cost for any extra rent you get, if you even get any.

    I would avoid as part of IP grade criteria.

    - Andrew
     
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  11. standtall

    standtall Well-Known Member

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    I have swimming pools in 2 IPs .. IP1 is in $1m range (bought for $650k in 2016) and it was rented out on day 1. Same tenant for last 5 years. We pay for pool maintenance ($60 per month), tenant pays for chemicals. Only other expense in 5 years was a salt cell replacement for around $500 one off.

    IP2 is in $1.3-4m range and was purchased fairly recently. It came with a literally brand new concrete pool which owner had just finished building but had to sell the house due to relocation. We received 9 applications and tenants moved in on first weekend after settlement.

    My experience so far: pools are no headache if your property is in a good price range and they go a long way in attracting very high quality long term tenants. Pools have also become a high demand feature in post covid world and most owner occupiers/tenants spending above a certain range want to have a house with a pool.
     
    Last edited: 10th Oct, 2021
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  12. Whitecat

    Whitecat Well-Known Member

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    How much to fill in a small pool? Is it possible to fill in and then dig out later if circumstances change?
     
  13. Whitecat

    Whitecat Well-Known Member

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    $1k not too bad (is that for guy to go and maintain?)
     
  14. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    We've got an IP with a pool in Perth. It's expensive to maintain, and some tenants don't. I definitely wouldn't choose it.

    From a selling perspective though, a lot of families want a pool for their OO home. We did, despite being a 100m walk to the beach.
     
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  15. Alex AB

    Alex AB Well-Known Member

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    Yes. That’s when you contract someone to come in every month to service the pool so you don’t rely on the tenant to maintain it (in case they won’t). With the trade cost there in Perth, make it 1.2k as I am sure many things increase nowadays.
     
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  16. Whitecat

    Whitecat Well-Known Member

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    I would prefer someone comes and does it. Are you paying about that? I havent got quotes yet. Small pool luckily (or unluckily, will see how I go).
     
  17. Alex AB

    Alex AB Well-Known Member

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    Yes. I inherited a contract and continued to use it Need to take a closer look but I think the pool service itself is just around $65 a month but the total bill is nearly $100 but then I recover chemical cost from tenant the following month. Also not sure if we do maintenance monthly in winter or less often. Anyway, I would budget around 1k+ for maintenance per year if you do the calculation in case some other misc cost.
     
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  18. Whitecat

    Whitecat Well-Known Member

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    Can you pls give me the contact details of the guys you use?
    Why do you recover the chemical cost? Seems strange to divvy it up like that? Why not just pay all and then reflect that in the rent?
     
  19. Alex AB

    Alex AB Well-Known Member

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    That’s the practice I guess. I understand that people try to increase the rent a bit to cover the pool maintenance cost though.

    Will PM you the pool maintenance company that I see in the receipt. I just inherited the lease including pool maintenance so I don’t deal with them directly.
     
  20. Elle Ar

    Elle Ar Well-Known Member

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    This. I'm subdividing in coastal North and considering putting 2 pools in at earthworks stage. End product will be $800-$1m.

    The only caveat is you generally want to lease out in spring / summer as people tend to discount the coast and pools in winter and overvalue them in summer. In the current crazy rental market it barely matters though.
     
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