Adding air-conditioning... a cost or an investment?

Every year Australians have at least a few months of sweltering conditions that make them seriously consider moving to a colder climate or at the very least installing air-conditioning! There’s no doubt that an air-conditioned investment property will be particularly attractive to the rental market especially in the hotter months. So how do the numbers stack up?

With an outlay of around $3,500 you will be able to install a quality split system air-conditioner that will be adequate for the average one or two bedroom apartment and increase the rent by $20 or more a week. As most air-conditioners come with a 5-year warranty and should last you around the ten year mark you will certainly achieve a great return on the investment as you will have re-couped your investment in around three and a half years. In addition, you will be able to pick up some depreciation benefits so be sure to advise your tax accountant.

The middle of a heat wave is not the best time to be selecting an air-conditioner as most people do. When you are in the peak of summer you will pay a premium for a system and its installation. However, now is the time to set your outlook reminder for around April or August to get the job done. This avoids the strong demand for split system installations in the summer and winter months meaning that you are likely to purchase the system for a lower price and have it installed within a quick timeframe.