What will your home be worth in 2021?
Do you know what your home will be worth one year from now?
The following table by Domain predicts just how much property prices will increase by 2021. Sydney, Melbourne and Brisbane prices will lead the way over this year and next.
Do smart homes influence property prices?
House prices are rising, which could generally put a dampener on demand however, with interest rates so low, demand is strong and prices are rising.
With that in mind, builders and sellers are looking to gain an edge, which is where smart homes factor into buying decisions and vendor investments.
There is no real data to determine, how much prices could rise due to the use of home automation, however Auctioneers Gavin Zeitz (G and H Property), and Oren Flamm (Hodges Caulfield) believe that home automation can deliver that ‘wow factor' to potential buyers.
“Right now buyers are asking about pay TV such as Foxtel,” says Oren. “They're also enquiring about phone and Internet points, including data points and smart wiring.”
“Home automation can deliver a wow factor to buyers.”
Zeitz tells ITA homes security is another selling point, especially for those looking to buy high-end.
“We're seeing that extend to apartments too though,” Gavin says. “Many renters are looking for security systems and cameras to enhance the safety of their home.
According to IT Solutions blog Fingent, “A vital consideration for an investor is the resale value of the property. The greatest impact home automation systems and devices have on real estate are that they increase the resale value. They usually raise the home value in terms of curb appeal. As smart home technology becomes more prevalent, home-buyers will see the benefits of investing in a smart home.
“Adding home automation features and amenities can only do good. Along with location, market, condition, neighbourhood, and age of the home, technology is also factored in when determining the market value of that property. Surely a home with smart home devices will have a greater value than a home that doesn’t.”
What is a smart home?
As typical households become more and more influenced by technology, it is worth taking a look at the rise of smart homes, their influence on property purchase and effect on value.
Smart homes don’t necessarily equate to some futuristic house-scape that talks to you and orders your dinner, all while setting a particular mood to match your day.
Smart homes and smart home integration is simpler than that.
You may not consider it on a day to basis, but your home is likely to have at least one smart appliance. It could be a television, a washing machine or dishwasher, or it may be your light system.
Smart refrigerators have become popular: they can make automated shopping lists based on supply and demand; they can organise meals and lunches, or even search the internet for recipes.
Entry level smart home products come from familiar brands, think
- Google Home
- Amazon Alexa
- Apple Homekit
Aussies love the Internet of Things
According to Integrated Technologies Australia (ITA), the number of households in Australia to implement Internet of Things (IoT) systems is expected to rise to 1.6 million by 2021.
Looking globally, ResearchAndMarkets.compredicts that the global market for smart homes would witness a CAGR of 15.01% over the forecast period 2019-2027.
The global smart home market spans across five major regions around the world, namely, the Asia-Pacific, Europe, Latin America, North America and the Middle East and Africa.
Surprisingly, it is our own backyard that is leading the way. Asia-Pacific is the fastest-growing market in the global smart home market.
India is the fastest-growing country in the APAC market region. The major drivers of the Indian smart home market are the country's vast population, improvement in people's standard of living and the rise in their purchasing power.
This article is news and information, not financial advice. The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements
InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.
The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.