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Watertight property investment

25th April 2007

The drought gripping many parts of Australia raises a number of issues that could affect all property owners in coming years - and not just through water restrictions.

Australian Property Investor's April issue reveals how the big dry affects property owners and what action they can take to prepare themselves for continued dry conditions. Some of the issues for property owners are:

CracksThe drying out of foundations underneath homes can put added pressure on footings and cause movement that creates cracking in houses. Building advisers Archicentre tells API this can especially be the case if the homeowner is watering gardens at one end of the house while the other end is drying out.

"Anyone looking at buying a property in drought-affected areas would be well advised to have a building inspector check for signs of cracking," says API editor Eynas Brodie, "especially as some sellers may attempt to cover up signs of cracking that may become worse down the track."

Water savingMany state and federal rebates now exist for homeowners who install water-friendly devices around the home, including rainwater tanks, AAA-rated showerheads and taps and dual-flushing toilets.

Homeowners are also increasingly investigating the options for re-using grey water for garden maintenance, cleaning cars and toilet flushing.

"Homeowners investigating the re-use of grey water need to understand there are some restrictions because it can be harmful if consumed, either directly or indirectly, by humans or animals," Brodie says. "For instance, grey water can't be airborne."

Green thumbs also need to monitor its use on gardens as it can cause degradation in soil quality.

Urban developmentThe drought is already changing the way our cities are being built. New housing estates are being designed with water-saving measures in mind, Brodie says.

"In Victoria's southeast, for instance, between the suburbs of Officer and Cranbourne, six new housing estates are being developed that will see about 40,000 households connected to recycled water for gardens, car washing and toilets by 2030," she says.

However, Michael Mobbs of Sustainable Projects in NSW, says the biggest changes in terms of sustainability will be outside the house in the street.

"Black roads, dark roofs and no trees increase the ambient temperatures of our cities by three to six degrees and poor road design is doubling the impact of climate change," he tells API.

Property valuesA survey conducted by Matusik Property Insights last year showed that 64 per cent of homeowners thought water tanks added significant value to their homes. Of the yes voters, 30 per cent thought they'd add between 2 and 5 per cent in value, with 20 per cent thinking they'd add 5 per cent or more.

"Given that the median house price for Brisbane is $325,000 then even if a tank adds 2 per cent in value, it's still an extra $6500," property analyst Michael Matusik tells API. "It's more than worth the cost to install, plus there are rebates too."

The managing director of Property Marketing Corporation in Queensland, Patrick Brodie, adds that fully sustainable homes will be potential goldmines for investors prepared to pay an extra $20,000 in the short term. He tells API that those who are forward thinking enough to invest in sustainable housing now will reap significant capital gains over the long term.

API editor Eynas Brodie says, "Environmental issues are very much front of mind for many Australians these days, especially given the tight water restrictions in many of our capital cities.

"There's every reason to believe these same issues - water and energy conservation - will be on most people's minds when they're buying property, especially as time goes on. It would pay for most homebuyers and investors to give these issues more than a cursory thought," she says.

Watertight property investment

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