The hidden cost of older homes

There’s a lot to love about older homes, but they can be less energy efficient than modern buildings, and that can see home owners facing higher power bills.

With summer in full swing many of us will be relying on air con to stay cool in the weeks ahead. It works. But it can be expensive if you don’t have solar or are using it in the evenings without a battery.

In fact, around 40% of our annual power bill goes towards home heating and cooling ^[1] . But not all homes feel the heat (or cold) equally. New research by CoreLogic shows that homes built after 2010 tend to be twice as energy efficient as those built prior to 2010 ^[2] . The difference reflects the gradual introduction of a minimum 6-star rating for energy efficiency for newly built homes since 2010.

What it means for you

According to CoreLogic, new homes built since 2010 have a median star rating of 5.9 out of a possible 10. By contrast, homes built prior to 2010 have a median rating of just 2.8 stars. Having a home with a higher star rating doesn’t just mean bragging rights for home owners.

A high energy rating can translate into serious savings on household power bills. It makes energy efficiency an important issue for all home owners. The good news is that there are ways to improve an older home’s energy rating – even on a tight budget.

Simple changes can deliver big savings

Boosting your home’s energy efficiency doesn’t have to involve a major makeover. One of the most effective steps you can take is to install roof and ceiling insulation. This alone can cut heating and cooling costs by a whopping 45% ^[3] . Another simple step, draught sealing, can cut up to 25% off your power bill ^[4] .

Making the shift from gas appliances to electrical can see you save $898 annually on power costs ^[5] . These are big savings at a time when we’re all juggling a cost of living squeeze.

Energy efficient homes can be attractive to buyers – and could command a better price

Slashing power bills is a pretty compelling reason to look at ways to ‘green’ your home. It’s not the only reason though. A report by Domain found two-thirds of home buyers prefer energy-efficient homes ^[6] . And they’re happy to pay extra.

The so-called ‘green premium’ can add around $122,000 to the value of houses. Energy efficient apartments can command about $70,000 more at sale time.

How to fund a green makeover for your home

It all adds up to smart reasons to take a closer look at how you could make your place more energy efficient – especially as Community First has a low cost solution to pay for your projects.

Our Green Loan can help you fund the cost of environmentally friendly home improvements, turning your home into a more comfortable place to live, while letting you pocket valuable savings on utility bills.

With a low rate, terms ranging from 1 to 10 years, and the flexibility to pay out your loan early without penalty plus redraw payments in advance, our award-winning Green Loan can be used for a variety of projects.

No matter whether you’re planning to add solar panels, rainwater tanks, insulation, double glazing – and a whole lot more –talk to us about a Green Loan or apply online today.

Credit eligibility criteria, terms & conditions, fees & charges apply. 

^[1] https://www.climatecouncil.org.au/wp-content/uploads/2023/04/CC_MVSA0353-CC-Report-Two-for-One-Home-Energy-Efficiency_V5.2-FA-Screen-Single.pdf

^[2] https://www.corelogic.com.au/__data/assets/pdf_file/0026/25388/AmpedUp_CoreLogic_Dec24_Report.pdf

^[3] https://www.yourhome.gov.au/passive-design/insulation

^[4] https://www.yourhome.gov.au/passive-design/ventilation-airtightness

^[5] https://www.climatecouncil.org.au/wp-content/uploads/2023/04/CC_MVSA0353-CC-Report-Two-for-One-Home-Energy-Efficiency_V5.2-FA-Screen-Single.pdf

^[6] https://s3.ap-southeast-2.amazonaws.com/ffx.adcentre.com.au/domain/2024/CRTV-3293/Domain+Sustainability+in+Property+Report.pdf