Would you add air con in your IP?

[kamchatsky]

A/C definitely, it seems everyone expects A/C for new houses. These days people wants comfortable lives

This is especially true in new areas where there is a sea of new houses available for rent, tenants would definitely look for houses with A/C option.

I put one on my new 2 storey IP for 7k (ducted 3 bedder with 2 zones). all new houses in my area has it.

Unless your area has tight vacancy I would suggest add it to the build, and let it depreciate .... With 4 bedder, definitely go for ducted as it looks a lot better than split.

The question is, can you choose different brand of A/C to keep the cost down?

 

[scha9799]

I would put the air con 14k into the new build.

It's really cost you initial investment $14,000 x 20% = $2,800 ( if you loan 20/80).

If you build it with no air con, and later on tenant requesting for installing air con, then your cost will be $14,000 out of your pocket !

The way I think is, new build the bank fund you 80% ( assuming you borrow 80% of the property), and you get 100% return from the rental income. But if you install an air con into an existing building then there is 100% out of your own pocket.


I hope this help

 

[Rixter]

But if you install an air con into an existing building then there is 100% out of your own pocket.

Why anyone would use their own money to take a $14k hit to their cash flow is astounding when they can use OPM cheaper.

 

[Ausprop]

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

that is great! amazing how some things hang in there, my best item is my 25 year old pair of socks... outlived some of my cars

my sister's ducted ac lasted 6 years and was scrapped. I spent $20k on one back in 2004, if i was honest it was never any use, but it was attempting to cool a 2 storey with void. splits are also a semi-durable consumer item.

a lot of this decision comes down to whether you are cashflowing the place or selling it. if cashflowing, just chuck a grunter split into the living area and fans in a couple of the bedrooms, as I can't see a business case for a $14k system. If selling, consider whether you would be better placed to discount $14k against your competition or not.

it's as simple as... if renting: work out how you will fund this, what the interest rate is, assume a 7 year life span and how does that stack up to the extra bit of rent you will get? If selling: can you discount by less than $14k to sale against your comps?

 

[Ausprop]

Why anyone would use their own money to take a $14k hit to their cash flow is astounding when they can use OPM cheaper.

cheaper than what Rixter? can they get actually get a loan for it?

 

[Rixter]

cheaper than what Rixter? can they get actually get a loan for it?

From CF perspective, cheaper to borrow the funds than to pay $14k for the AC from after tax dollars... one's a hit to your cash flow, the others paid from pre-tax CG if/when the property is sold.

 

[bubbles]

When I recently spoke to PMs in QLD they said the first thing tenants look for is air conditioning and security.

I can only assume buyers would too, otherwise they would see $xx more they have to spend.

It surprised me that these were the 2 big things.

 

[wylie]

Friends of ours were trying to rent a $750 per week house. The one thing stopping it from renting was lack of air-con. We add air-con to any house as we change tenants. That and dishwashers and decks are top of the list for rentals in our areas of Brisbane (inner south).

High end houses probably "need" ducted as it is more upmarket than splits, and you don't have the wall mounted outlet, which is ugly really (if there is another choice).

 

[Brady]

When I recently spoke to PMs in QLD they said the first thing tenants look for is air conditioning and security.

I can only assume buyers would too, otherwise they would see $xx more they have to spend.

It surprised me that these were the 2 big things.

Doesnt surprise me about the A/C.

I wouldn't live in a property in QLD without it.

Security I guess want to be secure, but wouldn't be up there for me.

 

[Rixter]

When I recently spoke to PMs in QLD they said the first thing tenants look for is air conditioning and security.

I can only assume buyers would too, otherwise they would see $xx more they have to spend.

It surprised me that these were the 2 big things.

Over the past 15 years the 3 most common things I find tenants (& owner occupiers) look for (in no particular order) are:

1.Security - for themselves & property they own
2.Spaciousness - room to move without being cluttered by their belongings
3.Comfort - heating &/or cooling in the form of reverse cycle AC or gas heating.

 

[wylie]

I've just been told by a developer friend that our (proposed) townhouses definitely need air-con as part of the build. I hadn't even given that a thought. He has suggested splits as being much cheaper than ducted, which is fine with me for a townhouse, especially as we will be doing skillion rooflines.

 

[letiha]

100 % yes.... and it should be less than $10,000.

I am paying just over 10,000 for ducted in a 2 story new build also in Brisbane north.


I think its worth it and ads value and is better than multiple splits.

 

[wylie]

100 % yes.... and it should be less than $10,000.

I am paying just over 10,000 for ducted in a 2 story new build also in Brisbane north.


I think its worth it and ads value and is better than multiple splits.

I will get quotes for both types. I'd prefer not to have the wall-hung units if there isn't a hug price difference, and if the skillion can cope with the ducting... I guess we can put outlets in bulkheads, which is another idea to avoid the roof. So much to consider...

 

[citystar]

I always invest in a good air con in all of my investment properties. It's the first thing on the list of things to do to improve the rental price and helps attract more potential tenants for inspections.