While the concept of smart homes are on the rise here in Australia, does making your home “smart” lift it’s overall value – and is the investment worth it?
According to a recent report conducted by the Federal Government, the average household energy debt for gas and electricity has increased 12% from $897 in 2019 to 2020, to $1,000 in 2020 to 2021.When saddled with other rising costs of living in the Land Down Under, many of us are taking charge when it comes to things we can actively save funds on, as well as doing our bit to help save the planet.
As such, the concept of smart homes is generating an increased amount of interest within real estate circles – and once you understand the concept, it’s easy to see why. By blending innovation, automation and technology together, smart homes are revolutionising the way we approach day to day living. Despite growing in popularity, determining whether smart homes equate to higher property values is still somewhat of a grey area.
How Smart Homes Influence Property Valuation
In simple terms, the phrase “smart home” refers to a domestic arrangement where appliances and devices can be automatically controlled from anywhere – all you need is internet access via a mobile phone or other device. While the term covers some pretty big ideas and concepts, the general gist is all about increased home automation and improved energy efficiency.
History tells us that we humans are known to be big fans of convenience, particularly when it comes to streamlining tasks and minimising our efforts linked to any form of manual labour. While the concept of smart homes is a newer one here in Australia, the most popular components of this growing trend include automating everyday household tasks, monitoring and adjusting devices to save on energy consumption, storing and managing renewable energies, and the integration of wireless entertainment systems.
However, like most things modern and innovative, upgrading existing properties to smart homes doesn’t often come cheap. While switched on developers and vendors are plugging in to the growing trend, do buyers think that it’s truly worth shelling out for a high tech house?
According to research and data released from Statista, almost 25% of Australian households already feature some form of smart home technology, with that number expected to balloon to 42% by 2023. Unsurprisingly, it’s Millenials who are leading the way when it comes to buyer demand, specifically hunting for smart homes that feature appliances that can be operated via a computer or a mobile device such as lighting, heating and cooling appliances or security cameras – but are they willing to pay more for the pleasure?
While there are no concrete figures linked to smart homes and increased property value coming out of the Australian real estate market, all a savvy consumer needs to do is look across the pond. In the United States, smart homes are selling for an average of 5% more than what they normally would when compared to “traditional” properties.
According to Teslyte MD Foad Fadaghi, one of Australia’s leading smart home product manufacturers, that trend could soon reach Australian shores.
“Our studies have shown that one in four Australians would be willing to pay more for a smart home compared to a non-smart home,” said Mr Fadaghi.
For developers and property owners looking to get on the smart home bandwagon, the most in demand features that Aussie buyers keep a watchful eye on are generally lighting control, automated blinds, door intercoms, security systems and smart home entertainment. While investing in smart home technologies may not quadruple your final sale price, it could help to market your home to prospective buyers who may be willing to pay more accordingly.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
