Back to Inspire Home

Why owning a pool may not increase your property value

Thinking of buying a house with a pool? Maybe you’re looking to install a pool to bump up the value of your property before getting an appraisal.

In the heat of the Australian summer, it certainly makes life more comfortable. But does it make a difference in the highly competitive housing market of our major cities?

We surveyed more than 1,000 Australian men and women online to find out how much more they would pay for a house with a pool.

A lot of people may think that having a pool looks great on a real estate ad but our research actually indicates it may not add any value to the average Australian.

How much is your property worth?

Get a valuation for millions of properties across Australia.

Search a property

Nearly 40% of those surveyed said a pool would add no value to a property

Lendi - Pool graph all responses

About 47% responded with answers that would amount to considerably less than the actual cost of buying and installing a pool and only one in seven respondents said they’d pay $50,000 or more.

National Research Manager for Australia-wide real estate company, PRD nationwide, Dr Asti Mardiasmo said she wasn’t surprised by these findings as the costs associated with having a pool are “high”.

“And I don’t mean just the financial or obvious costs such as filters, electricity, etc.,” she said.

“But also intrinsic costs such as worrying about leaves in autumn (and who will clean this), making sure PH levels are always correct, any dirt in the water, etc.”

Dr Mardiasmo said prospective buyers should really consider how much they would use their own pool at home before making a decision.

“Depending on where you live there are usually so many public pools and gym pools around,” she said.

“How many times will I realistically use the pool in a month vs cost of keeping it up vs entrance fee to a public pool?

“With growing household costs – petrol, groceries, electricity, water, etc – pools have gone down in the priority list.”

The typical pool and house buyer is younger

Lendi - Pool graph by age

Within the survey, most of the respondents who said they’d pay more for a property with a pool were aged 18 to 34.

Nearly 70% of all 18-34 year-olds surveyed said they’d be willing to pay more for a pool, compared to about 47% of over 55 year-olds.

What does this say about the Australians who desire a pool the most? Is it likely that a younger person looking through the real estate section would like the look of a place with a pool more?

If they are looking for a house to entertain friends in, it’s possible.

Dr Mardiasmo thought “the ability to host great pool parties” at a house was a drawcard for younger generations.

Got your eye on a property down the street?

Find out how much it's worth with our free property report.

Search a property

Owner-occupied vs property investors for pools

What these results may also tell us is the current makeup of those who are or would-be property investors compared to owner-occupied homeowners.

Research published on The Conversation found the typical Australian property investor to be a 44 year-old male earning about $100,000 who has a 72% chance of being married.

Latest housing finance figures from the Australian Bureau of Statistics also show that 63.6% of the nation's total dwellings can be attributed to owner-occupied housing. This, incidentally, almost lines up with how many people would pay something extra for a property with a pool.

Dr Mardiasmo thought it was fair to assume that those who would pay more for a property with a pool are owner-occupiers instead of investors.

“Absolutely, as investors do not really want to have to think about ongoing costs of a pool as well as potentially having tenants ruin the pool,” she said.

See our white paper to view the full set of results.

How much equity can you access?

$

Don't know your property value?
Get a free property report

$

Tags: land valuation, valuation, home equity loan, home equity, equity

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
Home loan repayment saver tool

Home loan repayment saver tool

Enter a few details about your home loan and see how much you could save on your repayments

Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Made with love at Circular Quay in Sydney, Australia. © 2021. All rights reserved.