The 2022 Domain Sustainability in Property Report found energy-efficient homes generally attract premium prices and sell faster than non-eco listings. With the median range selling for $125,000 (+17.1%) on average than non sustainable homes, it’s the perfect reason why you need to consider the environmental and sustainable impacts any renovation has on your home.
Here are three sustainable renovations you can add to your home that you can be assured will bring more value in the long term.
- Solar power: With an abundance of sunshine, Australia is a prime location for solar panels. Not to mention, there is a great demand for houses with solar panels. A 2020 Origin Energy survey showed that 77% of Australians view houses with solar panels as more valuable. Furthermore, 55% of renters said they would be willing to pay increased rent for solar panels.
- Water tanks: Installing a sustainable irrigation system can help reduce your water bill, especially if you have a large garden or lawn. Collecting rainwater in tanks during the rainy season will prepare you for the dry season, when you can use the free, nutrient-dense rainwater to water your garden.
- Insulation, glazing and tinting: To reduce heat loss, window glazing and tinting as well as insulation can be of great help. You will also be shielded from the summer heat and winter chill.
Sustainable Apartment
The results are also promising for apartment owners, with energy-efficient units selling at $72,750 above the price of non-energy-efficient apartments (+12.7%).
Dr Nicola Powell, Domain’s head of research and economics, says that an increasing number of sellers are starting to meet the demand for eco-friendly homes. “Listings that contain energy-efficient keywords see, on average, 8.7% more views than those that don’t,” she says. “This is reflected in the fact that more than half of all for-sale listings in all states and territories mention energy efficiency in some capacity.”
How to finance your eco renovation
More and more lenders are offering green loans to help homeowners install eco-friendly features, and the great news is that these usually have lower interest rates than regular loans to incentivise sustainability.
If you own your home, another option is to release some of the equity to finance your ecological renovation. More about how to unlock your equity can be found on a recent artle we wrote here.
There are also lots of Government rebates available so don’t forget to check out your local government website to find out more about what is available for you.
Finance your renovation with the support of the Broad Finance team
We would be more than happy to help you go through loans, equity, and refinancing for your eco reno. If you choose to continue, you can refinance your home loan as part of the process. That is good news because, even though interest rates are rising, it does not mean that you cannot find a better deal on your mortgage. Lenders are still competing against each other, especially if you have a considerable amount of equity and a history of making your mortgage payments on time. If you want to talk about your reno and/or refinancing options, please contact us today.
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