Should You Install a Water Tank to Add Property Value?

Why Water Tanks Are Worth Considering

Water is a precious resource in Australia. With droughts, dry spells, and water restrictions a regular part of life, conservation is something most homeowners think about. This has made water tanks increasingly popular—and in some areas, even mandatory for new builds.

If you're thinking about selling or renting your property, a water tank could be a smart investment that adds real value.

Thinking About Selling or Renting?

Before making any improvements, it's worth understanding how they'll impact your property's value. A local real estate agent can advise on what buyers and tenants in your area are looking for.

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How a Water Tank Works

If you're new to water tanks, here's a quick overview of how they operate:

1. Collection – Your roof catches rainwater across its large surface area
2. Transport – Water travels down pipes and gutters into the tank
3. Filtration – The water is filtered to make it suitable for household use
4. Usage – Filtered water can be used for bathing, laundry, toilets, and garden watering

Good to know: With proper filtration and treatment, rainwater can even be used as drinking water—though this requires ensuring it's free from contaminants.

Modern Tank Options

Forget the traditional large silo image. Today's water tanks come in streamlined designs that fit any property and can be cleverly hidden from view—making them practical for homes of all sizes.

6 Benefits of Installing a Water Tank

1. Reduce Water Bills

A water tank reduces your reliance on mains water, lowering your ongoing water costs. This is an attractive feature for buyers who want to minimise household expenses.

2. Greater Self-Sufficiency

Properties with their own water source are less dependent on the local supply—appealing to buyers who value independence and resilience.

3. Freedom From Water Restrictions

During droughts and water shortages, restrictions can limit when and how you use water. With a tank, you can:

• Water your lawn and garden freely
• Maintain landscaping that makes your property stand out
• Keep your outdoor areas looking lush when neighbouring properties can't

4. Better for Your Garden

Mains water contains treatment chemicals that can affect plants over time. Rainwater is naturally chemical-free, making it better for gardens, lawns, and landscaping.

5. Emergency Preparedness

Water tanks provide practical benefits during natural disasters:

• Flash floods – Tanks capture large volumes of rainfall, reducing runoff damage
• Fires – An instant water source for firefighting
• Droughts – A backup supply when mains water is restricted

6. Environmental Benefits

Installing a water tank helps the environment by:

• Reducing stormwater runoff into oceans and ecosystems
• Decreasing demand on desalination plants (which produce greenhouse gases and can harm marine life)
• Conserving fresh water resources

Eco-conscious buyers and tenants increasingly seek properties that demonstrate environmental responsibility—a water tank signals that commitment.

How a Water Tank Can Increase Property Value

For Sellers

A water tank can make your property more attractive to buyers by:

• Lowering running costs – Reduced water bills are a selling point
• Enabling garden maintenance – Buyers see they can keep the garden looking great despite restrictions
• Demonstrating sustainability – Appeals to environmentally conscious buyers
• Meeting local requirements – In some areas, tanks are mandatory for new builds

Pro tip: An attractive, well-maintained garden helps sell homes—but gardens need water. A tank makes it easier to maintain landscaping, indirectly boosting your property's appeal and price.

For Landlords

If you're thinking about renting your property, a water tank can:

• Attract eco-friendly tenants – Many renters prioritise sustainable living
• Offer lower utility costs – A drawcard for cost-conscious tenants
• Enable garden use – Tenants can maintain outdoor areas without worrying about restrictions
• Increase rental appeal – Differentiates your property from others on the market

Want to know how a water tank might affect your rental return? Get a rental appraisal from a local property manager who understands your area.

Things to Consider Before Installing

While water tanks offer many benefits, there are a few factors to keep in mind:

Potential Drawbacks:

• Mosquito breeding – Improperly sealed tanks can attract mosquitoes
• Algae growth – Exposure to sunlight can cause algae contamination
• Maintenance required – Roofs and gutters need regular cleaning to keep water fresh
• Upfront cost – Installation requires an initial investment (though rebates may help)

How to Avoid Problems:

• Cover all inlets properly
• Ensure the tank is installed correctly by a professional
• Clean roofs and gutters regularly
• Choose a tank that meets Australian standards

Government Rebates and Requirements

The Australian Government offers rebate programs to encourage water tank installation, helping reduce your upfront costs.

Before Installing, Ensure:

• Your tank meets all Australian standards for design, manufacture, and materials
• Installation complies with local council regulations
• You understand any mandatory requirements in your area

Important: Regulations vary by location. A local real estate agent can advise on council requirements and whether a water tank is expected or mandatory in your suburb.

Is a Water Tank Right for Your Property?

The decision depends on several factors:

Get Expert Advice Before You Decide

A water tank can be a valuable addition—but the impact on your property's value depends on your local market, buyer demographics, and council requirements.

A local real estate agent can help you:

• Understand what buyers and tenants in your area are looking for
• Advise on council regulations and requirements
• Assess whether a water tank will add value to your specific property
• Suggest other improvements that could boost your sale or rental price

Find a Real Estate Agent and Get a Free Property Appraisal

Whether you're planning to sell or rent, understanding your property's current value is the first step. LocalAgentFinder helps you compare real estate agents in your area based on:

• Sales history and results – See how agents perform locally
• Fees and commissions – Compare costs upfront
• Agent ratings and reviews – Verified feedback from homeowners
• Local market knowledge – Find agents who know your suburb

Why Homeowners Choose LocalAgentFinder:

• Free service – No cost, no obligation
• Side-by-side comparison – Evaluate multiple agents at once
• Free property appraisals – Understand your home's value
• Trusted since 2007 – Connecting Australians with top agents

Ready to Find Out What Your Property Is Worth?

Get expert advice on how improvements like water tanks can impact your property's value.

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Key Takeaways

• Water tanks reduce water bills and make properties more self-sufficient
• Freedom from restrictions lets you maintain gardens and landscaping
• Eco-conscious buyers and tenants are attracted to sustainable features
• Tanks can increase property value for both sale and rental
• Proper installation and maintenance are essential to avoid issues
• Government rebates can help offset installation costs
• Local regulations vary – check with your council or a real estate agent