Is a pool +ve or -ve for investment?

[happy]

Looking at buying our PPOR soon which will eventually be an IP. Have found one in Elizabeth SA which looks lovely with an inground pool on a 995m squared allotment.

My question is, will a pool be a turn off to renters after this property becomes an IP? ie maintenance etc.. And also, what effect (if any), does a pool have on an IP's performance?

Regards, Happy

 

[Raddles]

HI there
I would have to say a pool is more attractive for an executive rental not something we ever look for in an investment property.
When we had properties destroyed by the Canberra bushfires - one of which had a pool - there was nothing but problems with it when claiming on insurance.
I have seen another thread on the property investment forum where someone waited 2 years to have a claim met on damage to a pool.
It is also a potential liability if you don't have proper pool fences.
Another issue is what happens when Elizabeth SA experiences drought and you can't fill your pool - are you prepared to put in water tanks? so your pool can be filled.
The ongoing costs of keeping a pool are pretty high - my mother once said their pool was costing them $1000 per swim (they had just had the pool liner replaced, refilled the pool, also all the pool chemicals).
Just my opinion - but if you really want to swim - why not go to the lovely public pool in Elizabeth which has slides and everything - rather than have the ongoing problems with a pool!

 

[yo yo ma]

Some good points raised by Raddles...
What is the climate like there? Do you think it would get much use?

The main point is to make sure it gets proper maintenance. Maybe add an extra amount (??$10pw) to ensure it is properly looked after. We just spent $4K on a new pool liner & new Kreepy Krawly, so there can be large costs involved
Steve

 

[alexlee]

Personal opinion only, but when I look for a PPOR this year I'm going to avoid a pool. I'd rather have a bigger back yard: less maintenance and I'm genuinely concerned about water restrictions.
Alex

 

[Nards]

I think a lot depends on the location...for example here in Cairns rentals with pools are expected/sought after and I know many landlords have a "pool service" once a month in the same way they might have a lawnmowing service, and lease clauses clearly stating tenant responsiblity (ie purchasing chemicals). Also it is a lot less likely to be prone to drought. That being said I think I would still avoid buying a property with a pool for the reasons already mentioned. Many tenants would love a house with a pool, but would they look after it properly, report when maintanence is needed etc...can get very $$ if not looked after properly when the novelty wears off...

 

[sailor]

I would always go for a house or a unit with a pool, but then I live in a hot climate, where we swim most of the year round. Tenants tend to expect a pool here. Also, we don't have a problem with water.

Having said that, I always add a bit to the rent to cover the maintenance costs (fortnightly pool man visit), so the tenant is not responsible in any way for the pool.

 

[flatout]

Personally, I put a line through any potential IP with a pool. Just another maintenance hassle. Here in Mandurah where we have a mediteranean climate, it would be too cold to use for half the year so I don't think tenants would value it enough to want to pay any extra rent for it other than to cover a fornightly maintenance service. So general maintenance and upkeep would probably have to come out of our pocket, thereby reducing our rental yield. As for pools affecting property values, I've always understood that a pool neither adds nor detracts from property value because some potential buyers see them as a negative, others as a positive. This view was confirmed recently when friends of ours had their home with an inground pool appraised for sale.

Flatout

 

[BV]

I have 2 IP's in a complex with a pool and they are nearly always tenanted.
With Sydney climate being so warm these days the pool probably gets used for 6-9 months /year & maybe longer.
I think IP's with pools generally attract more tenants.
You should include pool maintenance in the rent and you should arrange for it
to be done yourselves, if you leave it to the tenant it won't be done properly
or not at all.
Cheers

 

[wylie]

I think there is a huge difference in renting an IP in a complex with a pool and a house with a pool. If the tenant has never looked after a pool, things could go terribly wrong. We would avoid an IP with a pool but if we had one, would definitely factor in a fortnightly (monthly in winter) visit to keep it up to scratch.

Wylie

 

[BV]

I think there is a huge difference in renting an IP in a complex with a pool and a house with a pool.
Wylie

I agree.
cheers

 

[wish-ga]

On occassion people have talked about filling in a pool in an IP which I think demonstrates that they are seen as a burden if your ip is a house (as opposed to in a complex)

Will the maintenance on a pool be a turn off to renters... same as a big back yard. Renters don't care becasue they may not DO the maintenance. Back yard doesn't get mown, pool doesn't get vacuumed, no probs for the tenant.... big problem for owner.

If the property is exactly what you want in every respect besides the pool weigh up if the possibility of damage/cost associated with the pool is enough to put you off the overall benefits of the property/land. Could you investigate paying someone to swing by for regular garden/pool maintenance? Claim it as an expense and built that into the rent.

 

[steveadl]

Generally speaking I'd say pools are a negative for an IP, unless you happen to get a family with young kids.

My parents used to have a pool and were sick of the upkeep all year round for only about 12 days of use during the summer we used to get out of it (in Adelaide).

Also, friends of mine used to rent a house with a pool in it, and never kept up with the maintenance so was just green. Another friend who had one in their house (not renting) never maintained theirs either. Unless your a keen swimmer, it's a lot of work to maintain all year round, and I doubt renters would be keen on doing/paying for it given a choice.

Cheers
Steve

 

[sunshine]

One of our IPs (which was our temporary PPOR) in a regional NSW town has a pool, and we have had problems, not so much with the tenants, but with the PM who thought he knew a bit more than he did about timers and pumps

Since moving to the "big smoke" and renting a property with a pool, we learnt how the professional city PMs work, and we are trying to implement some of their "tricks" in our regional property.

We are going to have a "proper pool person" go to the property and explain to the tenants all the HOW TOs. Then we will have the "proper pool person" clean and check monthly or bi monthly in winter, and maybe fortnightly in summer.

Our problem now is FINDING a "proper pool person", who charges under $500 for a maintenance/ inspection visit. Sounds ridiculous doesn't it, but this is what our PM said it would cost. Of course I am not taking his word and will find one - reasonably priced - somewhere .... surely!

As I am unsure if Elizabeth is regional or city, my advice would be to see if you can find a reasonably priced "proper pool person" in your area, or ask "reputable" PM's for their advice on renting properties with pools in your area. Then, if you are reasonably satisfied and want the property - go for it.

Our way of thinking at the moment is if the pool gets wrecked, we can always fill it in - cheaper than selling costs and CGT

Good luck

Sunshine

 

[sailor]

Gosh, you guys get ripped off. Our pool guy charges $20 per fortnight and the pool is in pristine condition all year round.

 

[Vodka]

I agree.
cheers

I agree too. A complex - an onsite manager is usually employed to look after the common areas.
I stay away from an ip with a pool. Give tenants air conditioning they will be just as greatful and they pay the electricity bill.

 

[pete_pumpkin]

For a PPOR , I'd love a pool.

For an IP, I'd probably see it as a maintenance / liability issue - what if a kid drowns etc. I had a really nice fish pond out the front of my IP, but decided to get rid of it for that reason.

Also It gets hot in Elizabeth, (so to Adelaide) during the summer, but realisticly looking at it, three quarters of the year are probably too cold to go swimming.

 

[crest133]

Pools are great
when the weather is hot,
when you're hot and
if you like swimming and
if someone else pays the bill and
if someone else looks after it.

I'm in the planning process of removing the pool from our motel because it costs $2K p.a. plus my labour and time, and replacing it with more accommodation ( 3 extra units ) which have a measurable positive cash flow return with CG and depreciation to claim, less liability, and more drought friendly.

cheers
crest133

 

[quoll]

Seems to be a general consensis that pools aren't very good in IP's unless, you are in a warm climate, someone else maintains it.

When we find a potential IP and it has a pool that is a major negative. So far the positive's havn't outweight the negatives and we don't own any IP's with swimming pools.

cheers
quoll

 

[skater]

We have an IP with a pool. It was originally bought to be our PPOR, but things changed & it has been an IP for around 6 yrs now.

From my experience I would NEVER buy another property with a pool again. The maintenance from this pool is never ending. It really is not worth the hassel.

 

[handyandy]

Its just another maintenance item.

My theory on maintenance items in IP's is avoid them We have a house where family members live which has a pool and it is still a constant source of problems.

Cheers