Would you add air con in your IP?

[beachgurl]

I'm currently finalising plans with my builder for an IP in north Brisbane. It will be a 4 bed, double storey, double garage home. Ducted air will cost 14k and I'm considering adding it.

Would you include air con for an IP? Do you think it increases the potential rent or just increases interest in a property without any monetary value? From a property value side (as opposed to rental return), does ducted air add any value?

 

[Ausprop]

is it normal to do evap there?

 

[Lil Skater]

I don't know much about the QLD market.

BUT -
No A/C in summer sucks, no A/C in a double storey sucks more!

If you're looking to cut down on costs, maybe consider a s/s upstairs (say master bed, or if there's a landing where it can be installed and reach each room) and one downstairs in the main living area.

 

[Macca]

Sounds like an upmarket place so I would definitely put it in, I would have at least 2 zones but it depends on the layout of the house, I would go to 3 if it suited.

I believe that it would definitely add value, you will get more rent and give you a better selection of tenants

 

[Magnet]

We rent in Sydney. If I had a choice between two properties I would choose the one with air con particularly if it was reverse cycle. I would definitely pay extra for it. I think this would be even more sought after in QLD.

 

[wylie]

I'm currently finalising plans with my builder for an IP in north Brisbane. It will be a 4 bed, double storey, double garage home. Ducted air will cost 14k and I'm considering adding it.

Would you include air con for an IP? Do you think it increases the potential rent or just increases interest in a property without any monetary value? From a property value side (as opposed to rental return), does ducted air add any value?

It does both. Certainly without aircon in Brisbane your house will go to the bottom of the list. Especially higher end properties.

Evap is no good in Brisbane. If the house is big and you need several splits, you may be better to pay extra for ducted. It certainly looks better than lots of splits.

 

[Michael_X]

Installed Aircon in Brisbane property and managed to get a $20 increase in rent after installation.

 

[Corey Batt]

A new build without air conditioning these days is largely considered substandard by valuers - i'd suggest tenants would think the same.

 

[Ausprop]

Installed Aircon in Brisbane property and managed to get a $20 increase in rent after installation.

ouch - 14 year payback! with interest I'd guess 20 years. given it will probably die within 7 years you have to conclude this is not economic

 

[Michael_X]

ouch - 14 year payback! with interest I'd guess 20 years. given it will probably die within 7 years you have to conclude this is not economic

Oh, my aircon wasn't $14k as in the OP, it was only $2k.

I thought it was decent deal, $20 per week, over 2 years roughly paid for itself.

 

[starter]

That and it would be easier to rent out so minimises vacancy time and tenants churn.

 

[Scott No Mates]

Let them sweat and be pigs, they're tenants.

But seriously, it is the norm. The more whistles and bells, the higher the hurdle for the aspirational renters to jump and purchase their own.

 

[Brady]

No build with no A/C no thanks.

Tenants looking to rent a brand new property would be expecting A/C.

 

[wylie]

ouch - 14 year payback! with interest I'd guess 20 years. given it will probably die within 7 years you have to conclude this is not economic

Our ducted is still going 16 years after it was installed.

 

[sanj]

A typical new build without air con is not a good idea imo.

I'd also consider maybe ducted downstairs and splits upstairs or whatever; see if you can bring the price down a bit.

What is the price point in terms of end value/construction price/rent?

 

[westminster]

Depending on the area/value I would go ducted or split system but always do air con.

 

[beachgurl]

A typical new build without air con is not a good idea imo.

I'd also consider maybe ducted downstairs and splits upstairs or whatever; see if you can bring the price down a bit.

What is the price point in terms of end value/construction price/rent?

Construction price including ducted is 300k. End value of property around 750k. Local agent gave rental appraisal at $750pw.

Thanks for your comments everyone. Will keep the ducted air in the tender.

 

[sanj]

At those price points air con is non negotiabLe imo

 

[westminster]

At those price points air con is non negotiabLe imo

Agreed. Ducted air con for that market all the way.

 

[Rixter]

Adding an AC IMHO is a win/win situation for all parties concerned.

You get the AC installed from borrowed funds and increase the weekly rent by $10 or what ever the going market rate is.

The supply and installation in cash flow terms only costs you $55 per $1000 spent ($1000 x 5.5% interest = $55/52 weeks). So lets say you spend $2-$3k (depending upon system) - that's only $1.10 - $1.65 per week cost to you.

If you increase the rent $10-$15/w it more than covers it. In fact you have just increased your cash flow & made a profit

The last split AC I got installed was less that $1000. I spent $0.55 and made $10 in rent.

Plus you get a tax deduction on your interest cost, plus depreciation on the system it self.

Not a bad bit of value adding in my opinion and you have not used any of your own money to do it!.

You're happy and your tenants are happy - WIN/WIN!

Hope this helps.