Hi Guys,
The home we are currently living in will turn into a rental property when our new house is built mid next year.
I am wondering what the possible repercussions will be if i install a 1.5Kw solar system and then hand it over to renters a year later.
Is this a good idea? Seems the only benefit i get is 1 year of cheap electricity and the same as my lessee. Maybe i can charge higher rent?
I am only thinking about this since the NSW government is reducing the rebates on the 30th of June.
If you are going to use an agent as them if you will get extra, it is logical.
But I did ask an agent and they said not a cent more ,renters do not comprehend that the more expensive place may be cheaper.
I really think it is just lazy agents.
The Govt does not mind as long as the system stays with the house for I think 5 years
Why would I pay more rent to you to save on my electricity bills?
or a better way perhaps.
Would YOU pay more in rent to save a few $ on electricity?
Can you prove how much I will save?
Will you guarantee my savings on electricity for the term of my lease?
On a different note, can you save enough in the time before your new place is ready to cover the costs of the solar installation?
Also why would you spend money to save on electricity to increase the amount you generate in rent only to pay tax on the extra that you charge?
i think solar is more of a long term thing, if you have alot of cash to splash now, do it because in the future you will be happy you did. but not a way to get instant returns in my opinion. I would recommend if you had the property for 30 years and you were going to sell it, then put it in just before selling to make it look attractive to a potential buyer.
Have a chat to your accountant and get a financial perspective on your situation. Being and of financial year now he/she may be able to advise of a good debt way to work your situation out
Holly
I am only thinking about this since the NSW government is reducing the rebates on the 30th of June.
I'd agree with jess p, I reckon it's a long term thing. Will the cheap electricity for a year make up for what you spend to get it? I don't think it will make a difference to most tenants so I don't know if you could charge more rent for it, but what if it makes the tenants think it allows them to be
less careful about energy use? Will it be a good quality installation that will add value to the property itself if you ever sell or will it be another one of those stories of headaches over delays and poor performance like we keep reading about? Is there any real advantage for you and/or for the environment by rushing to do something before that date?
See if you can depreciate it over a certain fixed term. At least then, you could get something back in terms of tex returns - hopefully this return would augment the extr rent you thought you could get but actually cannot.