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Will Air Conditioning Increase the Value of my Home?

Will Air Conditioning Increase the Value of my Home?


If you’re planning on selling your home or renting out an investment property, it’s more than likely that you’ll look for ways to increase the value of the house so you can get the best possible return.

Installing new air conditioning or upgrading existing units is one such way many people look at to increase perceived value to potential buyers or renters.

If your home is in an area which is affected by extreme heat or cold throughout the year, it’s highly likely air conditioning will be seen as a necessary standard and not just a luxury.

In this blog post, we take a look at some of the key considerations to keep in mind in regards to how air conditioning can affect the value of your property.

Can you get a higher selling price for having ducted air conditioning?

Most homes in Australia have some type of air conditioning, whether it’s a split system, window unit or even a portable unit.

Ducted air conditioning is really on another level in comparison to these types of units in terms of functionality, convenience and comfort.  So it can be an extremely attractive option for potential buyers. They will most likely perceive your home as higher in value because there’s no need for them to spend more to cool or heat the rooms and whole house, provided the system is zoned. This will help them keep energy costs down.

However, ducted air conditioning systems are sophisticated and come with a much higher price tag than your average wall split system. You can be looking at installation costs of between $8,000 for a smaller home and over $20,000 for a much larger home.

Will these installation costs pay off for you? It’s a difficult question to answer. It depends on a number of factors such as the average house prices in your area, whether the system is ducted as well as the climate.

If house prices are high in your area, ducted air con might be seen as an affordable and highly desirable luxury.

If the system isn’t ducted, this can be seen as a drawback to the buyer as they won’t have control over which rooms they can cool and this will increase their energy costs.

If your house is in a temperate climate, then ducted air con may be seen as overkill. But in parts of the country which are regularly affected by extreme heatwaves or cold snaps, you’ll probably see a return on your investment.

If the price of ducted air conditioning is out of your budget, then you do have other options. Installing modern and energy efficient split systems will still offer a level of value to potential buyers.

Older style air conditioners are incredibly expensive to run in comparison to new models and also work less efficiently. Installing a high quality split system in at least the main living area and the master bedroom is an almost guaranteed way to add value to your home.

Rental properties – can you charge more in rent for having air conditioning?

If you own a rental property which doesn’t have any air conditioning, or insufficient air conditioning, this can have a significant impact on the amount of rent you’re going to be able charge to tenants.

Consider the point of view of a potential tenant. They are unable to install air conditioning themselves in your property as they don’t own it. They have to live and deal with whatever system you have installed.

If they feel that the home you are renting out is going to be unbearably hot in the summer or freezing in the winter due to a lack of adequate air conditioning, are they likely to want to live there and pay the maximum rental price?

If you have an old air conditioning unit in your property which is expensive to run, renters will see this as a major drawback. They won’t want to have to pay excessive energy bills just to keep the place cool or warm. 

It’s more than likely that there are other rental properties in your area which will have adequate and modern air conditioning. Potential tenants will be much more willing to pay extra rent to live in such properties.

If you want to get the highest possible return from your investment property, it’s always best to ensure that you yourself would be happy and comfortable living in it all year round.

Not sure if new air conditioning is a worthwhile investment? Just ask Acer Services!

For help and advice, talk to one of our friendly, helpful team members.

We can arrange one of our expert technicians to inspect your property and make recommendations as to what type of system will add the most amount of value to your house.

Simply click here to get in touch.