The pandemic prompted a renewed focus on relaxation and recreation at home, making luxuries such as a large backyard, nice deck and a swimming pool highly sought-after on the real estate market. These outdoor features turn your home into a summer oasis during the warmer months. While there’s nothing wrong with wanting to make additions to your home, it is essential to consider the pros and cons of adding an expensive luxury item, like a pool. Below, we will go over the ups and downs of adding a swimming pool to your home and how it may affect the property’s resale value.
Key Factors to Consider When Adding a Swimming Pool to Your Home
Adding a swimming pool to your home indeed has its benefits. However, these benefits are typically dependent upon a variety of factors. These include the size of your backyard, the location of the home, the style of the swimming pool and the climate where you live.
Interests of Prospective Buyers
Before installing a pool on your property, it is essential to consider whether you will benefit on resale. This depends on the interest profile of buyers who typically live in your area. If you live in a city where the summers are hot, and buyers would be interested in having a backyard pool, it could be a worthwhile investment. On the flip side, young families with babies and young toddlers might not be as interested in a home with a pool, which could pose a safety hazard for their children.
Location, Location, Location
Do you live in a “pool community?” Either way, this could work in your favour. If other homes in the area have pools, adding one could make your home more competitive on the resale market. However, if the addition of a pool makes your home unique, it may also be a wise investment, as it will set your home apart from your neighbours’ when you list your property for sale.
Costs Associated with a Swimming Pool
While having a swimming pool in your backyard can add immediate gratification and long-term value, it can be an expensive proposition. The costs associated with installing a pool and its upkeep should be considered before taking on a project like this.
Cost of Installation
In Canada, installing an in-ground swimming pool typically costs between $20,000 to $30,000, depending upon the pool’s specifications. You’ll also pay for a deck, stairs or patio around the patio, another significant upfront cost. Finally, if you finance your new pool, you’ll need to factor in interest charges.
Annual Maintenance Fees
Once your pool has been installed, consider the amount of work it takes to maintain and its operational expenses. You should expect to spend an amount corresponding to about 10% to 15% of the pool’s installation cost on maintenance each year. A $25,000 pool would cost the homeowner approximately $2,500 to $3,750 per year in upkeep. This is an essential factor to consider before installing the pool as it is a long-term investment. You want to keep your swimming pool well maintained and keep it operating free of health and safety issues.
Benefits to Installing a Pool
The primary benefit of installing a swimming pool in your backyard is that it will usually increase the value of your home, as well as your enjoyment of it. While you won’t see a high financial return in the short term, a swimming pool does add value in the long run. In addition to the financial gain when selling, you will also reap many benefits of the pool while you live in the home. Having a relaxing backyard oasis, improved backyard aesthetics, and a great place to entertain family and friends are all great benefits in our book!
While a pool and its maintenance are not for everyone, including potential buyers, they are an upgrade to your outdoor living space and sure to be enjoyed by friends and family alike.
As with any significant home upgrade, it is essential to carefully consider all the pros and cons before making such a big decision. Consider speaking with a financial professional to ensure the decision is financially manageable and realistic before beginning the upgrade.