When you dream about owning a home, does that vision of your private oasis include a pool? Before you take the plunge, it might be worth considering how a pool could affect the resale value of your home.
A pool might add around 7% to a home’s value, but that value can also vary from zero to more than 10% depending on factors like location, climate, pool condition and buyer preferences. So a pool is a bit like a car in that once you own it, you might never get the full cost back.
To help you make an informed decision, let’s do a deep dive into the facts.
When a pool makes financial sense
There are a few factors to consider that might make owning a pool financially sensible:
• If you live in a higher-end neighbourhood and most of your neighbours have pools. In that case, not having a pool might make your home harder to sell.
• If you live in a warm climate, but keep in mind the length of summer in our province. Our summers are hot, but they’re also short.
• Your lot is big enough to accommodate a pool and still have some yard left over for play or gardening. This offers more options than simply filling the entire space with a body of water.
• The style of the pool. Does it fit the neighbourhood, or is excessively extravagant?
• The condition of the pool. Is it well-maintained?
• Age of the pool. If you put a pool in today and sell in 20 years, you probably won’t recoup your costs if the pool needs updating.
• You can attract the right buyer. People with very young children may shy away from pools because of safety issues, but active, child-free people may fall in love with it.
But only you, the homeowner, can determine the true return on investment. A pool can add value to your quality of life and enhance the enjoyment of your home far beyond ROI. You can’t put a price tag on that!
Pools are an investment
Pools are a big investment. However, the cost of installing a pool depends on the type of pool you choose. Concrete is the most popular in-ground pool (also referred to as gunite or shotcrete) which is a mixture of cement and sand that can be applied into almost any shape. But this is also the most expensive option. The average cost to install, equip and fill a concrete inground pool starts at $80,000. Add in details like safety fences (code requires them), waterfalls, lighting, landscaping, and perhaps a spa, and you’re easily looking at totals approaching $150,000 or more.
Fiberglass shells and those with vinyl liners fall on the lower end of the budget scale. Fiberglass pools have a limited range of shapes and sizes, but are more affordable than concrete. Pools with vinyl liners traditionally fall on the lowest end of the cost scale and are a bit more flexible when it comes to customization, but the liners typically need replacing every 4 to 10 years. Most homebuyers will insist that you replace a vinyl liner, even if it’s only a few years old.
Keep in mind that for homes in Winnipeg, your pool must have a 5-foot (1.52m) setback from the water’s edge to the property line, so some modifications to your yard might be necessary as well.
Consider the cost of filtration and heating
The filtration pump is the biggest drain on energy in a pool system, so you want to get the most efficient pump possible. The good news here is that new, variable-speed pumps use up to 80% less energy than old single-speed pumps, cutting operating expenses dramatically. Starting at about $600, these cost more up front, but some local utilities offer rebates through participating pool dealers. You can further cut energy costs by setting the pump to run at non-peak times, when rates for electricity are lower.
If you’re planning to heat your pool, gas heaters are the least expensive to purchase and install, but they typically have the highest operation and maintenance costs. Many pool owners opt for electric heat pumps instead, which extract heat from the surrounding air and transfer it to the water. Heat pumps take longer than gas to warm the pool, but they’re more energy-efficient, costing up to $400 less to operate.
Regardless of heating system, covering the pool with a solar blanket to trap heat and reduce evaporation will further lower operating costs.
Upkeep responsibilities
All pools require that the water be balanced for proper pH, alkalinity and calcium levels. They also need sanitizing to control bacteria and germs, which is where chlorine has traditionally been used.
These days you have a variety of options, including systems that use bromine, salt, ozone, ionizers, or other chemical compounds that can be less irritating to eyes and skin. Chlorine remains the most popular because the upfront costs are reasonable, and you don’t have to be as rigid about checking the levels on a set schedule which can free up more time to actually enjoy the pool. But as far as your wallet is concerned, they all even out in the end.
In a seasonal swimming climate like we have, budget around $1,000 annually for maintenance if you do the chemical balancing and cleaning yourself. To save yourself the task of once-a-week vacuuming, you can buy a robotic cleaning system that will do the job for you while you relax poolside.
Unless you have an indoor pool, the pool must be opened and closed for the season, so add another $500 each time for a pro to handle this task. A pro might be the best option because if this task isn’t done correctly, you risk damaging your pool and encountering a nasty surprise in the spring, unless green water is the look you’re going for.
A pool can increase insurance costs
Adding a pool to a property typically increases a homeowner’s insurance costs in Canada. This is primarily due to the increased risk of liability and the higher replacement value of the property. Pools introduce a higher risk of accidents, injuries or even drowning, which can lead to costly legal claims and medical expenses, which is something to keep in mind.
Your property tax assessment could also increase if you do extensive renovating to your home like making any structural changes that increase your living space, or when building a garage, a deck or a swimming pool. It will not increase if you repair a structure with similar materials, providing it is not part of a major remodel. So replacing a vinyl pool liner won’t affect your taxes, but if you update the vinyl pool to a concrete pool, then you’re looking at an increase.
For these reasons, try to keep your total building costs for your new pool between 10% and 15% of what you paid for your house, so you don’t invest too much in an amenity that won’t pay you back when you choose to sell.
And whenever you do decide to sell, always contact a professional REALTOR®.