Any idea what kind of value this would add?

[Munchkin]

We live on a bush block that is not connected to mains power. Previously the power for the house was a (very unsafe looking) 600w solar system that would mainly only run lights, tv, computer for limited periods of time depending on how much sun there was. Anything else needed a generator (very expensive to run!). We couldn't even have a fridge!

We have just completed adding a whole new power system and now have a 4.6kW wind/solar system. So the house now would run almost everything a normal house would (just having to be careful on running too many things at once or else it will overload the inverter - 5kW). It also looks much better than before as the old system was in a crappy old shed right near the house but this one is up on a hill further away from the house and all in a brand new well built little battery shed - and actually installed properly by an electrician!

It cost us $20K to install but the electrician says we got a really good deal and that is quite cheap for what we got.

Would anyone here have any idea what kind of value this is likely to add?

 

[Propertunity]

Hard to say, but at a guess - about $20K.
Cheers, Alan

 

[Munchkin]

Even if what was installed is worth more than 20K?

Even though we paid 20K, if I add up all of what we got it is normally sold for about $24K, without installation.

It has gone from a house with a barely sustainable power supply to one that can run like a normal household

 

[Propertunity]

It is second-hand now

 

[Munchkin]

Ah ok, it is still a continuous power supply that did not exist before.


What is the value of having reliable power connected?

 

[vaughan]

It has gone from a house with a barely sustainable power supply to one that can run like a normal household

So it should be priced like a "normal" household, not $20k more.

What is the value of having reliable power connected?

Reliable power is expected. NOT having reliable power will decrease the property value significantly.

If I buy a broken-down car and spend money fixing it, its value has increased to that of a working car, not the total amount that I've spent on it.

Over-capitalisaion.

 

[sammy1]

Either way,good job on being self-sufficient.

 

[Munchkin]

So it should be priced like a "normal" household, not $20k more.

Yes so before the value may have been less than a property the same that did have power connected so the value should now have increased to the same as a like property, rather than being worth less like it was before. I never said it should be worth more than a property the same did I?

What would the value difference be like to two identical properties, one with power, one without? That is what I am wondering.

Reliable power is expected. NOT having reliable power will decrease the property value significantly.

If I buy a broken-down car and spend money fixing it, its value has increased to that of a working car, not the total amount that I've spent on it.

Over-capitalisaion.

If NOT having reliable power decreases the value significantly, then adding that reliable power should bring the value up by whatever NOT having it had decreased it by.

How is it overcapitalisation to connect a property to power?

You do realise every property in existance was once not connected to power, and someone paid for that to happen? And it can sometimes cost a lot more than $20K

 

[saiman]

true but you're asking how much value it will add and the simple answer to that is - not much

if you told us the location of your property and what kind of bargain you managed to buy it for because it wasn't connected to power, then there could be significant returns on you $24k system

 

[K_Raheja]

Even if what was installed is worth more than 20K?

Even though we paid 20K, if I add up all of what we got it is normally sold for about $24K, without installation.

It has gone from a house with a barely sustainable power supply to one that can run like a normal household

so i guess the price of the property is now been moved from 'below normal' to 'normal'.
it is assumed property has sustainable power supply when we look to buy..unless the agent mentions it or you find out while inspecting.

 

[Munchkin]

true but you're asking how much value it will add and the simple answer to that is - not much

if you told us the location of your property and what kind of bargain you managed to buy it for because it wasn't connected to power, then there could be significant returns on you $24k system

It is a rural property and to connect to mains power would be tens of thousands of dollars so I suppose the other properties around would be worth a bit more that are connected.

so i guess the price of the property is now been moved from 'below normal' to 'normal'.
it is assumed property has sustainable power supply when we look to buy..unless the agent mentions it or you find out while inspecting.

Yes well I guess I want to know what would be the difference between below normal and normal?

 

[BMan]

get a valuer to come out and have a look then ask them if that wasnt there what would it be worth.
thats the difference you seek

or sell it. you will then find out what someone is willing to pay for it and then know how much it increased it

 

[DaveM]

I have seen mention of power hookups from boundary to house of 30-40k, so I dont think you have added anywhere near that level. Would you get your $20k back on sale, probably. Over that, probably not.

 

[Hoffy]

You will have increased the price by 20k, but probably created no additional value to yourself, you will have just got your 20 back.

 

[wylie]

Why not ask RightValue. He is a valuer.

 

[Munchkin]

get a valuer to come out and have a look then ask them if that wasnt there what would it be worth.
thats the difference you seek

or sell it. you will then find out what someone is willing to pay for it and then know how much it increased it

I already have a valuation from before. Will be getting another one soon. I'm just curious that's all.

I have seen mention of power hookups from boundary to house of 30-40k, so I dont think you have added anywhere near that level. Would you get your $20k back on sale, probably. Over that, probably not.

It would be well and truly over 50K for this property

 

[savoys]

Munchkin, that is good that you think it is $50 K, you have asked people's opinions and they said probably about $20K.. !

 

[Munchkin]

Munchkin, that is good that you think it is $50 K, you have asked people's opinions and they said probably about $20K.. !

the 50k comment was about how much the actual cost to connect to mains power would be, in response to the post I quoted.

That statement was nothing to do with anyonea opinion about anything

 

[Munchkin]

Let me ask it a different way. Forget anything I have said about how much anything cost.

Say you were looking at two identical vacant blocks of land, one already had a power connection, one did not. What would you expect the price difference to be?

 

[Hoffy]

Let me ask it a different way. Forget anything I have said about how much anything cost.

Say you were looking at two identical vacant blocks of land, one already had a power connection, one did not. What would you expect the price difference to be?

The price of adding the connection.