The profits and perils of pools: avoiding over-capitalisation

The location of the property, he adds, is another vital factor, such as some areas, which include the Mallee, Northern Country, North East and the Wimmera can result in summer-like temperatures before or after the season.

“If you’re thinking of installing a pool, look for a design that suits your backyard and doesn’t overwhelm your garden,” Mr King suggested.

“Given the variety of pool sizes and shapes now available, a pool can be incorporated even in areas where block sizes are decreasing.

“A pool should complement a property with clever landscaping integrating indoor and outdoor living space. Ensuring safety barriers comply with local and state standards is also installed, particularly if the property is being rented out.”

While pools can add value, they can also over-capitalise a property and lose out on sales to comparable homes that are pool-less.

“A local real estate agent will be able to provide home owners with advice on comparable sales in the area – both homes with and without a pool,” Mr King said.

“For vendors, the presentation and maintenance of your pool will go a long way to determining how much of an asset it is when it comes time to sell. A neglected pool can be an eyesore so ensure the pool is vacuumed and clear of leaves and other debris.”

If investors are interested in adding a property with a pool to their portfolio, Mr King stressed it is important to check the fencing is compliant with the local council, as repair or replacement may end up being costly.

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