Solar power in investment properties

By Janet Spencer

Solar power in investment properties can add value and be a good investment. Tenants pay the utility bills and anything that will lower their cost of living is good.

Solar panels in Australian investment properties

Tenants may be willing to pay above market rent for properties with solar technology.  Also, have solar power might mean your investment property leases more quickly and is much favored when it comes time to find new tenants.

In a recent article on Domain, Daniel Buktovich cites three reasons that Australian property investors can’t ignore solar panels any more.

Of interest to many property owners will be the concept that break even point for investors could be the same as for owner occupiers when it comes to the cost of installing the system.  Why?  Because the equipment is tax deductible for investors.  So even though you don’t get the energy costs savings, your tenants do and you can become cost neutral in time.

The cost of gas is also very high in 2018.  So, many landlords are choosing to put in reverse cycle split systems rather than replace gas heaters.  In terns of paying for the electricity, this trend will influence tenants in choosing properties to lease and what rent they are prepared to pay.  An extra $10 per week rental could be a sensible move to have solar generated power in your rented home.

For advice and assistance on buying, selling and renting property in Melbourne, please don’t hesitate to get in touch on 0418 101 146 or jspencer@buyersolutions.com.au

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