Pool Party Pooper: Why Buying A Pool May Not Make A Splash As An Investment

There are many factors to consider when deciding whether or not to invest in a pool. While some people may view it as a luxury, others may consider it a necessity, especially during hot summers. The initial installation cost of a pool can be high, ranging from $39,000 to $70,000 for an in-ground pool, and $1,037 to $6,009 for an above-ground pool. Additionally, there are maintenance expenses and time commitments involved, as well as safety hazards to consider. On the other hand, a pool can bring joy to children and create opportunities for families and communities to gather and socialise. It may also increase the value of your home, although it is unlikely to cover the entire cost of the pool project. Ultimately, the decision to invest in a pool depends on individual preferences, financial situation, and the intended use of the pool.

High installation costs

The installation of an inground pool is a costly endeavour. The cost of installing an inground pool ranges from $28,000 to $55,000 on average, with some sources stating the average cost to be $35,000, and can even reach upwards of $65,000 for special customizations and extra features. The price of an inground pool depends on the size, shape, and material of the pool. For instance, concrete pools tend to be the most expensive, costing around $50,000 on average, while vinyl-lined pools are the cheapest option, with an average cost of $30,000.

The installation of a pool also requires additional costs for permits, landscaping, and labour. Permits can range from $450 to $1,800, and hiring a local electrician to install the pool's electrical systems can cost around $50 to $150 per hour. The cost of filling a pool with water can be between $60 and $1,250, and the cost of adding salt to a saltwater pool is around $60.

Furthermore, the installation of an inground pool can increase the cost of homeowners' insurance and property taxes. The increase in insurance costs is due to the addition of liability insurance, which can add about $50 per year. Property taxes may also increase, although installing a pool for medical reasons may result in a tax deduction of up to $12,000.

In addition to the initial installation costs, there are also ongoing maintenance costs associated with owning a pool. The typical pool can rack up $3,000 to $5,000 in yearly maintenance costs, including repairs, water, and electricity.

Overall, the high installation costs of a pool, coupled with the additional expenses and maintenance fees, make it a significant financial investment that requires careful consideration.

Maintenance expenses and time

Owning a pool is a significant financial commitment, with maintenance costs ranging from $80 to $260 per month, or $960 to $3,000 per year, depending on the size and type of pool. This includes the cost of water and electricity, as well as regular cleaning and common repairs.

The type of pool you choose has a significant impact on maintenance costs. In-ground pools, for example, tend to be more expensive to maintain than above-ground pools due to their larger size and permanent installation. The material of the pool also matters; concrete pools require the most maintenance, including more frequent use of chemicals and weekly scrubbing, while fiberglass pools need little maintenance.

Basic maintenance includes skimming the water, testing water chemistry, and checking filters, settings, and equipment. More comprehensive maintenance, such as vacuuming, inspecting equipment, emptying pump baskets, and brushing the pool walls, will cost more. It is recommended to hire a professional to perform these tasks, as they can identify potential problems and prevent costly repairs.

In addition to regular maintenance, there are also seasonal tasks to consider, such as opening and closing the pool for the season. The cost to open or close a pool ranges from $300 to $550.

To save money on maintenance costs, some tasks can be performed by the pool owner, such as skimming the water, testing the pH levels, and brushing the pool walls. However, it is important to note that DIY maintenance can be time-consuming, requiring several hours per week.

Safety issues

Safety is a key consideration when investing in a pool. Pools can be dangerous, especially for young children, and there are several precautions that should be taken to ensure safety.

Firstly, pools should be secured with appropriate barriers, such as four-sided isolation fencing with a self-closing and self-latching gate that is out of a child's reach. For above-ground pools, steps, ladders, and any other potential access points should be secured, locked, or removed when the pool is not being supervised by an adult. A secondary barrier, such as a door alarm, is also recommended.

Supervision is crucial when it comes to pool safety. Children should never be left unattended in or near water, and a designated "water watcher" should be assigned to supervise children in the water, remaining sober and undistracted. Even if a lifeguard is present, parents and caregivers should still take responsibility for supervising their children.

It is also important to teach children how to swim and to stay away from drains, as powerful suction from drains or suction outlets can be dangerous, especially if the drain cover is loose, broken, or missing. Anti-entrapment drain covers and safety release systems should be installed to protect against drain entrapment.

In addition to these measures, it is recommended to keep rescue devices and first aid supplies near the pool, and to ensure that electrical appliances are not within the pool area to prevent the risk of electrical shock.

While a pool can provide hours of entertainment and bring joy to families and communities, it is important to prioritize safety to prevent accidents and injuries. By taking the necessary precautions, pool owners can help ensure that their investment is a safe space for all to enjoy.

Higher insurance rates

Installing a pool in your backyard can be a great source of entertainment and relaxation, but it also comes with additional costs, including higher insurance rates. Here are some key points to consider regarding the impact of a pool on your insurance:

Increased Liability

Pools are considered an "attractive nuisance," which means they can attract people, especially children, and pose a risk of accidents and injuries. As a pool owner, you are liable for any incidents that occur, regardless of whether the person had permission to use the pool. This increased liability exposure will lead to higher insurance rates. The Insurance Information Institute recommends pool owners set their liability insurance around $300,000 to $500,000, or even higher if your assets warrant it.

Type of Pool

The type of pool you install can also impact your insurance rates. Above-ground pools are typically considered personal property, while in-ground pools may be classified as their own structure or part of your home's structure. This classification will determine how your insurance company covers any damage or liability claims related to the pool.

Safety Measures

Installing safety measures around your pool can help prevent accidents and may also reduce your insurance premiums. These measures can include installing a perimeter fence, a pool cover, a non-slip surface, proper signage, and safety railings. While some homeowners may consider a fence or gate unappealing, there are aesthetically pleasing options available that can enhance the visual appeal of your backyard while providing safety.

Location and Size

The location and size of your pool can also impact your insurance rates. If your pool is located in an area where most people do not know how to swim, your premiums may be higher due to increased risk. Additionally, larger or luxury pools with modern styles and upgrades will likely result in higher premiums.

Insurance Company Considerations

Different insurance companies may have varying rates and coverages for pools. It is essential to shop around and compare rates from multiple providers to find the best coverage for your specific needs. Some companies, like Allstate, may offer more affordable rates for homes with pools.

In conclusion, while a pool can be a great addition to your home, it is essential to consider the potential impact on your insurance rates. By understanding the factors that influence these rates, you can make informed decisions and ensure you have appropriate coverage while enjoying your backyard oasis.

Low resale value

While a swimming pool can increase your home's value, it's unlikely to be by much. According to HouseLogic.com, the most your home's value might increase is 7%, and that's only if certain criteria are met. These include living in a warmer climate, residing in a high-end neighbourhood where most of your potential neighbours have a pool, and having a lot big enough to accommodate a pool while still having room for a garden or play area for kids.

In fact, a pool might even scare away potential buyers who are turned off by the work and expense required to maintain a pool. As a result, in most cases, you're not going to recoup the cost of installing an in-ground pool, and "it's not going to increase the resale value", says Colleen Wightman, a Realty One Group SPARK agent in the Greater Rochester, New York, area. "Maybe in the Southwest that might be different, but if you've got accessible lake or ocean shoreline within 20 minutes of your home, a pool is not going to increase your home's value," she says.

According to Investopedia, a pool will give a return of between 15 and 25%. However, this is based on the money you may be able to recover from the pool's installation cost when you sell your home.

One source suggests that the best strategy for pools is for your neighbour to own one. The next best option is to have a nearby community pool.

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