Join Australia's most dynamic and respected property investment community

Solar for valuation

Discussion in 'Renovation & Home Improvement' started by cherubym, 1st Apr, 2016.

  1. cherubym

    cherubym Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    267
    Location:
    Melbourne
    Hi,
    Does anyone here experience an increase in value over putting up Solar system on a PPOR? Does it work with bank valuation?

    Thanks!
     
  2. Mr Dabolina

    Mr Dabolina Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    143
    Location:
    NSW
    Mmm...not sure about this. It might add a couple of grand (depending on total kW's of system) but I do know that it makes a significant impact on the Depreciation Schedules for IP's.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,392
    Location:
    Sydney
    More recent systems like a stored Tesla powerwall battery may be more advantage and add better value v's a old style panel systems since the panel system "sells" the produced energy back to grid which rebates the electricity use. The battery systems use the solar generated power and store it for self consumption before using the grid. ie you save dollar for dollar rather than cents in the dollar.

    My PM reckons solar systems are just a add on if you sell and may convince a buyer but wont mean a higher price. Doesn't improve rental income at all. A Tesla system may appeal to a tenant (higher rent ?) or owner occupier.
     
  4. cherubym

    cherubym Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    267
    Location:
    Melbourne
    So there is no need to add value with solar, in order to achieve at least $2 with every $1 like kitchen or bathroom. Do you reckon?
     
  5. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Perth, WA
    Did you hear that from somewhere? I've never heard of a solar system being a value add multiplier.
     
  6. Sonamic

    Sonamic Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    951
    Location:
    Sunny QLD
    Depends on how much you pay for the system. If you went nuts and put in $20k worth of system and a Tesla Powerwall you would loose? A $3k 4kw system, small gain? I have solar installed on all my houses. For three reasons, tenant appeal, depreciation and resale value. In that order. By the time solar rebates dry up battery storage systems will be more affordable. Now THERE'S a business opportunity.
     
  7. cherubym

    cherubym Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    267
    Location:
    Melbourne
    I didn't hear it from anywhere. I'm just after members experience on it. That's all. I will have to put it in my low priority list, it seems.
     
  8. cherubym

    cherubym Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    267
    Location:
    Melbourne
    So if anyone stumble across the topic around solar and adding value just for valuation purpose, we can conclude here that it's not that worth it. :)
     
  9. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    925
    Location:
    Qld
    Now that the higher tariff feed in rate is not passed on to the new owner, solar is not as attractive to buyers as it used to be when the high rate came with it. In Qld, other states may be different.
    Marg
     
  10. Andrew H

    Andrew H Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    204
    Location:
    Cairns, QLD
    i dont see houses selling for any more with solar than without in a lot of markets, doubt valuers adjust for them either. AND thats if you get a good valuer!! My experience with valuers i would say it would be a huge gamble. I was told by a valuer recently that outdoor kitchen/ bbq area they tend to add value for those - which i thought was interesting.
     
    cherubym likes this.