Summer is right around the corner and you may be thinking about installing a swimming pool in your backyard. If you aren’t sure whether a swimming pool is a good investment, in the long run, keep reading.
Here are six factors to consider when deciding whether or not to purchase a swimming pool.
1. Check your local property market
The property market trend is an important indicator to consider. Is it going up or down? This is the first thing you should look at because you want your pool investment to increase the value of your property.
If the housing market in your area isn’t moving upward, you might want to reconsider investing in an expensive pool at the moment. The easiest way to check whether the value of the homes in your area is hot or not is by using free sites like Zillow or Trulia.
2. Check permits required at the city hall
You’re ready to build that dream pool, the city may not be. If the city doesn’t issue a permit, there’s no way to build it. A permit (or permits) may be required, as every city is structured differently. It could be that there are power or sewage lines beneath the pool spot or other considerations specific to that location.
3. While you’re at the city hall, ask about property taxes as well
Find out what your new property taxes will be if you add a pool. Since a pool is considered an added value to the property, the overall property value would need to be readjusted to reflect this change, which translates into higher taxes.
Such adjustments usually depend on state and municipal codes. In some cases, however, the taxes don’t increase a significant amount, which could make it worth the investment for many people. Below are two scenarios for your consideration.
Property value without pool: $200,000. Property tax: 1% or $2,000 per year ($167 per month).
Property value with pool: $225,000. Property tax: 1% or $2,250 per year ($187.50 per month).
4. Understand the installation cost
There are three types of pools in the market: concrete, fiberglass, and vinyl. While the installation cost of each type doesn’t differ significantly, the lifetime cost does make a considerable difference.
Also, it’s important to know whether the pool is above the ground or in-ground. Above-the-ground pools are much cheaper, usually less than $10,000. On average, an in-ground pool can be installed for around $35,000 to $100,000, depending on size, location, shape, and other features (like spas, slides, rocks, lighting, falls, diving boards, plants, decks, and safety fences).
Installing a concrete pool is generally between $50,000 to $100,000. Fiberglass is around $45,000 to $85,000 and vinyl $35,000 to $50.000. However, for a more accurate quote, it’s recommended to consult a licensed and certified pool installer or contractor.
5. Calculate the lifetime cost
Pools need to be maintained and require electricity for a pump, cleaning, filtering, draining, plumbing, lighting, and more. These expenses can add up substantially over the years.
There are many features which homeowners add to their swimming pools such as glass tile, water and fire bowls, pavers or travertine, and rock features. It is important to ask what the ongoing and long-term maintenance requirements will be”
For instance, a concrete pool needs to periodically be washed and re-plastered, in addition to using automatic sweepers and chemicals to keep it clean and healthy to swim in. Also, since most concrete pools are quite large, they need more electricity to run and enlighten.
Over the course of a decade, the total cost of maintaining a concrete pool can equal around $30,000. On the other hand, the costs for maintaining vinyl pools over a 10-year period can be around $13,000, and fiberglass around $4,000.
Wendy Parker Barsell, the Executive Director of Florida Swimming Pool Association, says, “There are many features which homeowners add to their swimming pools such as glass tile, water and fire bowls, pavers or travertine, and rock features. It is important to ask what the ongoing and long-term maintenance requirements will be (of your pool and its features). For example, paver decks will need to be resealed periodically, and glass tile may need special attention to clean.”
6. Decide how to finance your pool
Once you’ve figured out your budget, it’s time to decide how you’ll be financing your pool. Do you have extra money sitting in the bank? Alternatively, do you need a loan for the pool? If it’s the latter, depending on your situation, you can choose Home Equity Line of Credit (HELOC), home equity loan, or personal loan.
Spend a couple minutes completing SuperMoney’s loan offer engine and you will see what loan amounts and rates you qualify for without any damage to your credit score. Home loans and home equity lines of credit are also good options to consider. No equity on your property? Read 3 Ways to Finance a Swimming Pool With No Equity.