Real ROI of Smart Home Tech Overview
Your home is more than four walls and a roof—it’s an investment.
Whether you’re new to homeownership, a seasoned real estate investor, or upgrading your current place, smart home technology offers significant benefits.
It can boost resale value, lower ongoing costs, and attract potential buyers.
These upgrades, from smart thermostats and energy-efficient appliances to security systems and solar panels, enhance daily living and contribute to your home’s long-term value.
But with so many available devices and options, how do you know which ones will pay off?
In this guide, we’ll explore smart home tech’s real return on investment (ROI), including how it can increase resale value, cut monthly expenses, and appeal to future buyers.
The Increasing Demand for Smart Homes
The global trend toward smart homes is undeniable, and Canada is no exception.
According to recent market trends, the demand for smart home technology is growing steadily as homeowners realize the benefits these devices bring in terms of convenience, energy savings, and security.
In fact, a 2021 study by the Canadian Mortgage and Housing Corporation (CMHC) found that energy-efficient and technologically advanced homes are becoming more attractive to both homeowners and prospective buyers.
But why should you care about this demand?
As a homeowner, investing in smart technology isn’t just about keeping up with trends—it’s about positioning your home as a future-ready property that appeals to today’s tech-savvy buyers.
Let’s explore how smart home features can increase your home’s resale value and attract more buyers.
Smart Home Features That Increase Resale Value
One of the most significant reasons to incorporate smart home technology is its potential to increase your home’s resale value.
Smart home features provide modern convenience, energy efficiency, and security—three increasingly demanding qualities.
Prospective buyers who see a home with the latest smart features are more likely to consider it a modern, well-maintained property that’s worth more.
Smart Thermostats and Energy Efficiency
Energy efficiency is one of the most sought-after features in a home today.
Not only does it make a home more comfortable, but it also saves money on utility bills—a key consideration for many buyers.
Smart thermostats like Nest, Ecobee, or Honeywell allow homeowners to optimize heating and cooling, reducing energy consumption and lowering utility costs.
- Increased Efficiency: A smart thermostat learns your habits over time and adjusts temperatures automatically. This can save you money on heating and cooling while keeping your home at the perfect temperature when needed.
- Appealing to Buyers: Buyers are increasingly looking for homes that reduce ongoing expenses. Homes with smart thermostats are more likely to attract buyers looking for energy-efficient solutions.
Installing a smart thermostat can reduce utility costs and make your home more attractive to prospective buyers interested in sustainability and energy savings.
Smart Lighting: Efficiency and Ambience
Lighting is another area where smart technology makes a significant difference.
Smart light bulbs, such as Philips Hue or LIFX, are energy-efficient and offer enhanced control over the ambiance of your home.
With smart lighting, you can automate light schedules, dim or change colours, and control lighting remotely via smartphone apps or voice commands.
- Lower Energy Bills: Smart bulbs use less energy than traditional incandescent bulbs, which can significantly lower your electricity bill.
- Customizable Ambience: The ability to adjust lighting to fit different moods or activities is an attractive feature for buyers, making it a worthwhile investment.
These features don’t just add convenience—they improve the look and feel of your home, making it more attractive to potential buyers.
Homes with smart lighting are seen as more modern and desirable, increasing their resale value.
High-End Security Systems: Safety and Peace of Mind
Security is a top priority for homeowners, and smart security systems offer an array of features that can help protect your home while also adding value.
Smart cameras, doorbell cameras, and smart locks can integrate with mobile apps.
This allows you to monitor your home remotely, receive activity alerts, and control access with a button.
- Appeal to Buyers: Smart security systems, such as Ring, Arlo, or SimpliSafe, are not just for homeowners—they are an attractive selling point for buyers who want enhanced home security.
- Insurance Discounts: Many insurance providers offer discounts for homes with smart security systems. These savings can make your home even more attractive to potential buyers looking for cost-effective ways to protect their investment.
Installing a smart security system can give your home a significant competitive edge, especially considering the added peace of mind it offers buyers.
Smart Appliances: Convenience and Energy Savings
High-end, energy-efficient appliances are another feature that can increase your home’s value.
Many smart appliances can be controlled remotely, provide maintenance alerts, and optimize energy usage.
- Energy Efficiency: Smart appliances, such as refrigerators, washers, dryers, and dishwashers, use less energy and water, saving money on utility bills. Energy-efficient appliances attract buyers who want to reduce their environmental impact and ongoing costs.
- Added Convenience: Smart appliances offer convenience by allowing homeowners to control them from their smartphones. For example, you can preheat your oven while on your way home or get a notification when your laundry is done.
These upgrades appeal to buyers looking for homes that integrate the latest technology to make life easier and more efficient, ultimately boosting your home’s resale value.
Solar Panels: Sustainability and Long-Term Savings
One of the most impactful smart home upgrades is installing solar panels.
Solar panels provide an eco-friendly energy source and can drastically reduce electricity bills.
In fact, according to the CMHC (not validated), homes with solar panels can see a significant increase in resale value because of the long-term savings they offer.
- Increased Property Value: Homes with solar panels have higher resale values because buyers are willing to pay a premium for long-term savings and environmental benefits.
- Incentives and Rebates: In Canada, you may also be eligible for government incentives and rebates to help offset the cost of installing solar panels, making this a more affordable investment in the long run.
While solar panels can have a significant upfront cost, the long-term benefits, including energy savings and property value, make them an excellent investment.
Plus, they align with the growing demand for sustainable, eco-friendly homes.
Reducing Ongoing Costs with Smart Home Technology
Smart home technology isn’t just about increasing your home’s resale value—it’s also about reducing ongoing costs.
Whether it’s saving on utility bills, reducing maintenance costs, or making your home more energy-efficient, these technologies help you save money over time.
Let’s look at how smart home upgrades can cut costs.
Lower Utility Bills with Smart Thermostats and Energy Monitoring
Smart thermostats and energy-monitoring systems can drastically reduce utility bills.
By learning your heating and cooling patterns, smart thermostats adjust your home’s temperature when you’re not there, ensuring energy isn’t wasted.
Energy monitoring devices allow you to track your energy usage in real-time and make adjustments to optimize savings.
- Annual Savings: Homeowners who install smart thermostats can save between 10% and 20% annually on heating and cooling costs.
- Energy Reports: Energy monitors provide detailed reports on energy consumption, helping you pinpoint areas where you can reduce your consumption, which can further lower your bills.
Smart home upgrades provide immediate cost savings by lowering utility bills, making them an investment that pays off over time.
Insurance Savings with Smart Security Systems
As mentioned, many insurance companies offer discounts to homeowners who install smart security devices.
These savings can add up significantly, helping to reduce overall insurance premiums.
- Lower Premiums: Insurers consider homes with smart cameras, locks, and alarms less risky, which can reduce premiums.
- Bundling Discounts: Many insurers also offer bundle deals, where you can save even more by combining your home and auto insurance with discounts for installing smart security features.
These savings can help offset the cost of installing and maintaining smart home technology, making it a financially sound investment for the long term.
Mortgage Integration: Financing Smart Home Upgrades
If you’re wondering how to finance these smart home upgrades, approvU Mortgage offers financing solutions that make incorporating smart home technology into your mortgage easier.
Here are some ways you can fund big-ticket smart home upgrades like solar panels, energy-efficient appliances, or high-end security systems:
Green Mortgages for Energy-Efficient Upgrades
Many lenders offer green mortgages specifically designed to finance energy-efficient upgrades.
These mortgages allow you to borrow extra funds to install eco-friendly features like solar panels, energy-efficient windows, or smart thermostats.
Green mortgages often come with lower interest rates and more favourable terms, making them an excellent option for funding smart home upgrades.
Refinancing Your Mortgage for Smart Home Improvements
Refinancing your mortgage is another option if you already own a home and want to upgrade to a smarter, more energy-efficient space.
With cash-out refinancing, you can access the equity in your home and use it to fund smart home upgrades.
Refinancing can also help you secure a lower interest rate, making incorporating these upgrades into your monthly payments easier.
Home Equity Line of Credit (HELOC)
Another option is a Home Equity Line of Credit (HELOC), which allows you to borrow against the equity in your home.
HELOCs typically offer lower interest rates than personal loans or credit cards, making them a cost-effective way to fund smart home upgrades like solar panels or high-end security systems.
Conclusion: The Real ROI of Smart Home Technology
Upgrading your lifestyle with smart home technology is not just about convenience—it’s a smart financial investment.
From reducing your utility bills to increasing your home’s resale value, smart home features offer significant long-term benefits that make them well worth the cost.
By incorporating these technologies, you enhance your living experience and position your home as a future-ready property that will attract buyers and command a higher price.
With the right mortgage strategies and financing options, incorporating smart home upgrades is easier than ever.
So, are you ready to upgrade your home and lifestyle?
The return on investment for smart home technology is clear—your home will become more valuable, energy-efficient, and attractive to buyers.
Don’t wait to take the next step toward a smarter, more connected home!