This feature can add $72,000 to your house price
If you’re thinking of selling your home this year, there’s a surefire way to add 10 per cent more to its price: make it energy efficient.
Houses with higher energy ratings typically attract a 5 to 10 per cent premium, according to a University of Wollongong review of international research published between 2011 and 2019 in 14 countries.
In the Australian Capital Territory, there was a 2.4 per cent price premium for a six-star Nationwide House Energy Rating Scheme (NatHERS) score, and a 9.4 per cent premium for a seven-star house when compared with a three-star home. The maximum rating is ten stars.
“For Australia, with a median house price of $773,635 in late 2019, the ACT results equate to potential price premiums of $18,500 and $72,721,” Daniel Daly, research fellow at the Sustainable Buildings Research Centre, University of Wollongong said.
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While it’s mandatory in many countries for the seller to disclose a home’s energy rating, it’s not in Australia – and the report suggests it should be.
“This system would obviously be good for people trying to sell (or wanting to buy) energy-efficient homes, but it’s also good for our society,” Daly said.
“It has been estimated almost half the homes that will be in use in 2050 have already been built.
“If we are to meaningfully reduce carbon emissions from our cities and built environment, we need to tackle our existing building stock.”
And increasing a home’s energy rating isn’t just good for the seller - there are significant perks for buyers too.
Australians who promise to buy or build a sustainable home, or a home with a NatHERS score of 7 or above are eligible for discounted home loans.
Bank Australia is the first bank to offer the Clean Energy Home Loan, which will offer rates as low as 2.44 per cent (per annum fixed or 2.78 percent variable).
And, energy efficient homes could lead to cheaper ongoing bills.
“A disclosure policy of a building’s energy rating could help buyers make a more energy efficient choice, which could then result in lower energy bills and a healthier home,” Daly said.
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