Does a pool increase house value in Canada now? It may be different now than a number of years ago. In 2022-23 interest rates increased, as did the price of homes and entertainment. If an active family (or individual or a couple) can imagine spending more time in the pool and less time spending money on trips and “away” vacations, then having that pool is a good thing for them. For a seller, you should expect a Return on Investment (ROI) of 8 – 10% from a luxury inground pool. Variables such as the pool’s age and general feel of the property can increase or lower that ROI.
How do ROIs work?
Return on Investments (ROIs) is meant to inform renovators and sellers which of those renovations will help regain a cash outlay.
- Simply put, renovations to a house’s structure or foundation, such as roofing, electrical, HVAC, and plumbing, will always be top ROIs.
- However, being visual humans, if, for example, a redesigned yard is eye-popping with a beautiful pool, the ROI of that renovation will be higher because it is visually desirable.
It’s very likely that a pleasing pool in an already big backyard will increase a house’s value…for people who have always wanted a pool.
Like everything, the context of the yard, its upgrades, how old the pool is, and how the pool area interacts with the house can inspire some people to view a house with a pool as a positive feature if the family wants a pool. And every buyer knows if they want a pool or they don’t.
Passion Pool & Pond can help you refresh or renovate your pool, increasing its value and providing you with many more years of outdoor enjoyment before you sell your home.
What are the intrinsic reasons a pool will provide a financial upgrade to a home?
The size and location of the property:
- A well-kept (large) yard with a beautiful pool will benefit the seller financially.
- A pool requires a property large enough for its installation, and so that property is usually already an upper-priced, high-end home.
- A home with a pool in an upscale neighbourhood will have a higher ROI than one in a lower-end neighbourhood.
- A tighter property with a pool that takes up most of it may not add any value to the home’s sale.
A buyer’s inclination toward a pool:
- People looking for a pool will likely pay more for a property with an attractive pool.
- Another potential buyer who doesn’t want a pool will either look elsewhere or expect a lower price to accommodate the cost to remove, fill in the pool, and relandscape.
The details of the pool style, composite, or design:
- A newer, higher-end inground pool with additions like a water feature, attractive landscaping, and pool surround will translate to a higher return on investment for the seller.
- Conversely, an aboveground pool is an element that will be a financial strain for some people, even if they are looking for a pool. It is less attractive with a shorter lifespan than an inground fibreglass or vinyl pool.
- Passion Pool & Pond are professional pool designers and installers in the St Marys and Stratford, ON areas.
The real estate market at the time of the house sale:
- If the current real estate market is in a seller’s favour, buyers will be obligated to pay more for a property with a pool.
- At times, the cost of a pool installation will reflect the selling price of the property (usually, an instance where the topography of a yard dictates a more significant sub-structure)
- In these instances, a higher ROI is likely.
Whether a pool will increase house value in Canada depends on different factors. If your pool adds significant value to a lifestyle and is aesthetically pleasing at this particular inflationary time, the answer is likely yes.