AusFinance Gazette

Increase you property’s value by 10%

Findings from international research shows that properties with high energy efficiency ratings attract a premium of 10%

University of Wollongong used research compiled across 14 countries, including Australia to determine the findings. The only data used from Australia is from the Australia Capital Territory (ACT), where energy-effeciency ratings are mandatory for vendors to declare as part of selling their home.

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What were the research findings?

How does a 9.4% increase in the value of your house sound? Well, in the ACT, houses sold with a 7-start NatHERS ratings (explained below) attracted precisely that over lower rated homes. With electricty expenses seeming to go higher with every bill, an energy-efficient house is only going to become more attractive to purchasers.

The median house price in the ACT is over $770,000, which equates to an extra $72,000 for houses with a 7-star rating.

This research is groundbreaking in the residential property space, but similar findings, including one by Western Sydney University, have been found in the commercial sector where disclosing energy ratings is standard.

“Everybody wants an energy-efficient home. After all, an energy-efficient home is comfortable to live in, without large energy bills,” says Dr Daniel Daly, a research fellow at the University of Wollongong.

“These can be important factors for prospective home-owners or renters.”

What is the NatHERS rating and how do I improve mine?

The Nationwide House Energy Rating Scheme (NatHERS) looks at a home’s energy efficiency and gives it a rank out of ten based on its performance and design.

The government has created a website which gives great information to start off on making your property more environmentally sustainable.

Energy-saving tips you’ll find include solar panel installation, draught proofing, window types and placement, rainwater tanks and battery packs.

Getting finance to fund your energy efficient project
A high NatHERS rating can increase the value of you property by close to 10% but there will likely be some upfront costs associated with improving your energy efficiency. If you’d like to discuss your finance options, please get in touch with us.

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