My home’s appliances are telling me things have changed; whether it be hot water, cooking, air conditioning, fans or lights, everything electrical or electronic will at some stage need to be replaced. Where do you start?
It is no surprise the large scale property managers (the likes of DHA) etc. keep one eye on the replacement cycle of these large cost appliances. The whole property system is built on the premise that the actual land continually appreciates but in fact the house structure will depreciate over time. This makes sense when we think about it. New appliances have a manufacturers’ warranty and are at the peak of their operational performance when brand new. Over time, typically 10-15 years, these items have performed past their peak and will start to have issues that may require a replacement rather than just the regular service. So what to do ?
If we just “hold on, ” what can often occur is that we get into the gambler’s mentality. We have just tipped in $1500 so we need to hold onto the property for long enough to return this capital investment, however we may only find that the next item and the one after that starts to fail.
Or, you could rely on wishful thinking and imagine that these items will endure forever….
Or, you could look at a coordinated refresh of your property; the opportunity to give it a coat of paint and general spruce up including these electrical appliances. It makes much more sense to have an electrician visit on one occasion and make all the necessary repairs rather than a series of emergency call outs over the next 5 years.
Really it is no surprise that the large operators just make the decision to turn over their property when they get to this point in time. To them it’s just a logical decision that “we don’t want to get caught with an endless cycle of appliance failure and replacements so best to just cut this investment loose from the portfolio and move on”.
To move the property on may be the right answer however there are some other considerations that can make sense and perhaps making a sound plan will work for your situation.