Best Way to Spend $5000 on a Home?

joshjosh210 on 25/09/2023 - 07:47

Morning

My partner and I are moving into our very first home at the start of October, and along with this we are receiving a $5000.00 gift to put towards the home.

I’d like to spend this in a way that can help us save money in the future and be more energy efficient. I’m tossing up between the below items and just wanted to hear some feedback.

  1. Small Solar System
    The house currently doesn’t have any solar, and considering a small system like a 6.6kw to help reduce our energy bills.

  2. Replace gas hot water with heat pump
    Looking at replacing an older gas hot water (house was built 19yr ago, not sure exactly how old the hot water is) with a modern heat pump unit to reduce our gas bill.

  3. Split System
    Currently the house is fitted with ducted gas heating and ducted evaporative cooling. Thinking a split system would reduce heating cost (gas has been a killer for us this year) and improvise cooling.

Hoping to hear your feedback on where you’d spend the money, or anything else you can think of.

Cheers

Home & Garden

Comments

  • haroldmac on 25/09/2023 - 07:57
    +1

    House and contents insurance

    Apart from hot water, what else is on gas?

    • joshjosh210 on 25/09/2023 - 08:24

      Thanks for the reminder, have definitely organised this.

      On gas is hot water, ducted heating and the stove top. The stove is brand new so not really looking to change that - the missus would kill me.

      • foxinsox8 on 25/09/2023 - 19:47
        +13

        Ducted heating has to go. Reverse cycle air conditioning is the cheapest heating esp if you have solar.

        • OhNoUShiz on 28/09/2023 - 00:40

          Is gas heating that costly? I paid $1059 up till day in Vic. Used gas mainly during winter and for water storage. I have been changing providers for lower rate.

          • BanannaMan on 28/09/2023 - 07:00

            @OhNoUShiz: In vic it is, yes

            • OhNoUShiz on 28/09/2023 - 07:58

              @BanannaMan: do you know how to prove it? I mean for me to install 2 more split systems and a large system jn living room and add solar system. I reckon up front cost is about $10k!

              I did a test once in one winter month by using only split system to heat up mbr, it costs $180 pm. My electricity bill on average is $50 pm without switching on split system with occasionally running standalone heater in bathroom.

              So, if each room running split system on its own probably going to cost me $520 pm without offset from solar system.

              I don’t have large roof so how many panels roughly can i put on the roof?

              Thank you for any insights.

      • DangerNoodle on 26/09/2023 - 19:56
        +1

        Swap all the lights to LED? You may need the Phillips master series bulbs depending on the current setup. I've rented some houses that still use some high wattage bulbs and downlights.

        For the place I'm renting now, kitchen is in the middle of the house so all the smells and oils drift up towards the upstairs bedrooms since the rangehood isn't that good. My solution was I got a decent bbq and now I cook most of my meals outdoors, and I end up using less gas this way as well. Helps that the one I bought has a wok burner function and works well for roasts.

        If it's your first home, don't forget to budget for council rates, emergency services levy, water bills, etc.

  • Some Human on 25/09/2023 - 08:12
    +12

    Option 3. Gas heating is expensive.

    • joshjosh210 on 25/09/2023 - 08:24

      Thanks we’ve noticed that this year as our current rental has ducted gas and it’s been expensive that’s for sure.

      • Zondor on 25/09/2023 - 14:42
        +2

        But also, evap cooling is cheap as peanuts. Some people don't like it, personally, I do.

        • foxinsox8 on 25/09/2023 - 19:48
          +6

          Great in Adelaide useless in Brisbane.

          • Grunntt on 26/09/2023 - 10:10

            @foxinsox8:

            Great in Adelaide useless in Brisbane.

            OP's profile says they are in Vic though.

        • joelmuzz on 26/09/2023 - 10:24
          +1

          Entirely depends on the local climate. If it is humid then it is useless.

        • ThadtheChad on 26/09/2023 - 14:15
          +2

          Evap cooling is decent as a low budget survival option in places with dry heat (e.g. Perth).

          Split aircons are unparalleled in effectiveness and are relatively inexpensive to run (if the home is built well).

    • jorf on 25/09/2023 - 08:38
      +3

      I was elected to lead, not to read.

  • 87percent on 25/09/2023 - 08:12
    +12

    Proper insulation for a cheaper improvement

    • joshjosh210 on 25/09/2023 - 08:23
      +1

      Thanks for the feedback, improving insulation is definitely something I’d skipped pass. The house already has roller shutters fitted which I hope will help.

    • EBG on 25/09/2023 - 10:01
      +3

      This and draught proofing initially will be good bang for your buck.

      • SpainKing on 25/09/2023 - 13:48
        +1

        If you draught proof your house does it also make it harder for little bugs to invade it?

        • EBG on 25/09/2023 - 14:47
          +2

          I’m sure it would help but it’s more about being energy efficient, otherwise it’s like running your fridge with the door open.

          Check out the My Efficient Electric Home on Facebook. There’s lots of posts about good draught proofing and all the other stuff you’v you’re considering.

    • foxinsox8 on 25/09/2023 - 19:45

      Definitely the best option. Beyond that solar power or put it into your mortgage.

    • xylarr on 26/09/2023 - 08:25

      Definitely this. And if you do install air-conditioning, it will reduce the running cost considerably.

    • joshjosh210 on 25/09/2023 - 08:25

      Thanks, we will be looking at a new fridge to suit the space and to update our washer/dryer.

      Thanks for the feedback regarding evaporative and the price of gas v power. I had heard the rebates were much worse than they used to be.

    • ozbargainsam on 25/09/2023 - 11:04
      +4

      Nothing is as good as evaporative cooling

      Is this true in all Australian climates? Doesn't it stop working effectively at certain humidity % or temps?

      About gas, you just need to be mindful that reverse cycle has an efficiency multiplier. Because it's not generating heat from electricity (just transferring heat from the outside) you get more effective heating per unit electricity. While gas is 1:1 burned to heating energy. I did the maths not long ago, and gas is about 3x cheaper per unit of energy than electricity (for me) so OP should keep it in mind. That said, I only have one big gas fireplace so it doesn't heat all parts of the house. And I have ducted aircon (reverse cycle) for everywhere else.

      • gromit on 25/09/2023 - 13:49
        +14

        yup, evaporative is bloody awful and possibly the worst solution compared to just about anything else when humidity or temps fall outside its effective range.

        • Protractor on 25/09/2023 - 14:48
          +1

          If the majority of a high population areas households, summer is a dry heat and they are the best cheapest solution.
          And you get to leave the hose open if you wish, and you can flush the roof space A few humid days a year is dumb reason to rule it out. Not for the tropics that's for sure, but southern state cities are going to be blistering and dry going fwd. No matter what BS is spun about energy prices it's only headed upwards, whatever the suource, so reverse cy AC will eat up the bucks (cumulatively) more and more. PLUS! more energy usage = worse climate change

          • ThadtheChad on 26/09/2023 - 14:21
            +1

            @Protractor: If cost is a primary driver over effectiveness, then evap cooling is definitely something.

            They are absolutely garbage during humid days in Sydney - and make indoors a bit oppressive.

            Invest in solar + split aircon and you can have your cake and eat it too.

            • Protractor on 26/09/2023 - 15:14
              -3

              @ThadtheChad: Design your house right in the 1st place. Your option is the basic sheeple lazy cappo option.
              I'd like to know how many humid 'oppressive' days BOM records PA in Sydney Vs how many 'hot oppressive dry heat days. Like I said elsewhere, you can flush your house and roof with no water into the mix. That will provide relief. This climate is a new human induced disaster , the more humans+ the more AC = solar panels coming out of our butts won't help the planet or our species.

        • ssfps on 25/09/2023 - 23:42
          -1

          evaporative is bloody awful and possibly the worst solution

          The "worst" solution out of only 2 possible solutions is only 1 off from being the best solution. Evap or phase change? Nobody is installing peltier coolers on their house.

      • Zondor on 25/09/2023 - 14:43
        +3

        Good in dry heat places like Adelaide.

      • GandalfTheCheap on 26/09/2023 - 00:59
        +1

        Yeah OP, where is your house?

        You've got people saying evaporative cooling sucks, or is the best, but it depends on where you live.

        • knk on 27/09/2023 - 00:15

          I've got evap and it's fine if you know it's limitations and how to use it (humidity / area depending). Humid days obviously it doesn't do shit, in Melbourne there's probably 5 or 6 days a year where the evap just doesn't work due to it.

          Costs next to nothing to run, cools the entire house down vs having to run multiple split systems at once to achieve the same thing.

          The amount of people that have told me "evaporative is crap", "it makes your floor sticky" etc etc only to have commented on the house not feeling like shit and being nice and cool inside when they've actually been here on a hot day.

          That said, obviously it's not that "ice cold" air you get out of a refrigerated unit. A rule of thumb is that you'll generally be able to get a reduction of 10 degrees inside your house from memory, however I find that if you plan beforehand and run the unit all day before it really heats up you'll get more than that. In my experience, on days where it's below 32-33 degrees it's nice inside the house. Above that and it's not the greatest honestly, but it does make it livable. I still need a refrigerated unit in my bedroom/study for the too hot days though.

  • brad1-8tsi on 25/09/2023 - 08:33
    +16

    Solar, then a split system.

    • The Hawk on 26/09/2023 - 11:30
      +2

      I'd second this. A system at that size is worth around $1,000 a year to you (more or less depending on self consumption and FIT). Yes FIT and rebates are down, but it's still a decent investment. I'd love to say a battery, but the ROI is still too long unless you're doing for more than just financial payback.

      Split systems in Australia are becoming more and more a must have, although I'd still say second to solar… but only just. Do both.

  • Jimothy Wongingtons on 25/09/2023 - 08:34

    solar , assuming you can get it mounted in an ideal spot, and get decent rates… otherwise payback period is lonnnngggggg

    • Geoff01 on 26/09/2023 - 08:25
      +1

      He's getting it for free. So will save money every day

  • Mokr on 25/09/2023 - 08:36

    How much savings do you have.

    A house is expensive.

  • Caped Baldy on 25/09/2023 - 08:41
    -1

    Induction stove might be worth it.

  • boomramada on 25/09/2023 - 08:49
    +4

    Put the money in the bank and wait till something to give in or figure out what you need the most. If you were asking us, then you don't need to spend on any.

  • toasty on 25/09/2023 - 08:51
    +8

    Congrats to you and your partner!

    I’ve helped two family members get rooftop solar installed in the last couple of years and, despite rebates coming down, they have both outperformed expectations with the return on their investments turning to pure profit within four years of installation.

    Check the SolarQuotes calculator to get a good idea of how it could work for your situation:
    https://www.solarquotes.com.au/solar-calculator/

    If you decide to go ahead, I recommend getting some quotes through SolarQuotes as well as contacting the most reputable local installers for quotes too. Focus on reviews and how long the installers have been in business, then just bargain hard to get the best price!

  • ForkSnorter on 25/09/2023 - 08:54
    -3

    Depending on where you live, I’d just wear warmer clothes in winter and cooler clothes in summer, and forget about heating/cooling entirely, it’s a complete waste of money. Instead, spend the money on landscaping the garden and furnishing/decorating the house interior. Nothing is more important than making the place you live beautiful and functional. Many people really skimp on this area, and prefer to live in ordinary houses with ugly furniture and a horrible garden. You just need a bit of money, a bit of common sense, a bit of research and and a lot of hard work, and you can completely transform the appearance of your house, inside and out.

    • Protractor on 25/09/2023 - 09:15

      Unless they built the house with solar passive in mind ,your advice is wasted .
      The comments about gas over winter indicates it. Probs tiled roof as well, with inadequate insulation.
      I'm guessing it's another built to 'fit in' construction.It's the way humans roll.

    • rumblytangara on 25/09/2023 - 11:36
      +1

      I’d just wear warmer clothes in winter and cooler clothes in summer, and forget about heating/cooling entirely, it’s a complete waste of money.

      I've moved into a place that is surprisingly stable for temperature across both summer and winter. Not having to bundle up in three layers of clothing in winter, or go shirtless in summer, has made a huge quality of life improvement over other places I've lived in.

      Been looking at other places around me recently, and my first thought is usually "this place must feel like an ice cave in winter"

    • Surfer Dude on 27/09/2023 - 10:47

      Peasant

  • DiscountForThee on 25/09/2023 - 08:56
    +1

    Get solar - depending on your roof and shading, the payback can be as soon as 5 years (and even less, if energy prices continue to rise)

    • Geoff01 on 26/09/2023 - 08:27

      They are getting it for free so SAVE MONEY FROM Day 1

      • nushydude on 26/09/2023 - 09:12
        +1

        But there is this thing called opportunity cost.

  • pao2x on 25/09/2023 - 09:09
    +2

    Solar is probably best value. As long as your roof isn't shaded or too difficult to put one into

  • singlemalt72 on 25/09/2023 - 09:10
    -1

    Solar FIT are so small now, unless you can use your generation capacity to offset home use then it is not going to really be bang for your buck.
    The water heater is a good idea - the current heater is probably going to fail in the next few years - better to be proactive and replace it before that happens, just be aware of the noise these units make and where it will be situated.

    • Protractor on 25/09/2023 - 09:17
      +3

      Yes replace everything now, cos 'all going to fail'….

      • singlemalt72 on 25/09/2023 - 10:53

        Programmed maintenance - also the new unit is much more efficient and will make back its cost quickly, this makes it a paractical use of the money as OP wants to use it as a longer-term money saving investment.

        Split system is also going to save money, there are a multitude of online calculators to estimate savings and payback periods - but unless the solar can offset home usage (someone at home most days using the bulk of the generated electricity e.g. cooking, cleaning, laundry, etc.) then the Solar would probably have lowest payback opportunity.

  • Protractor on 25/09/2023 - 09:12

    Spend all the money on planting trees (in a long term project location) to offset a tiny fraction of the impact

  • c64 on 25/09/2023 - 09:22
    +12

    $5k man cave

  • freefall101 on 25/09/2023 - 09:25

    Depends on the house layout for a split system vs gas heating. I did that this year (removed gas heating, put in a split system) and found that the split system basically runs all day to keep the house warm (I wfh and I'm used to the comforts though) and heated it unevenly (it doesn't work around corners). Really to work best I probably needed 3-4 small ones. It works a lot better as an aircon though (from my short experience in Feb/Mar) than the evaporative which struggles on humid days (I have both now). There are rebates for switching from gas to split system at the moment that are worth looking into, I didn't use them though. Gas heating was leaking and a billion years old so had to go asap when I moved in.

    Hot water wasn't worth it for me. Our actual gas usage is pretty minor for hot water. It's just the stove and hot water and my last gas bill was $56 over 28 days, with $35 of that being usage. While there are piles of rebates at the moment it still didn't add up, particularly when you get into reading about heat pumps and there's a lot of new models on the market with questionable quality so the cheapest ones might not be good.

    Solar definitely made sense, probably on about a 5 year payback period. It adds value to the house as well.

    • JimB on 26/09/2023 - 14:21

      I also find split systems are rubbish for heating anything other than bedrooms/small rooms.

      Works well for cooling.

  • sumyungguy on 25/09/2023 - 09:38

    You need to do 3. before 1. & 2. and doing 2. now will save you having to cash flow a replacement at short notice. Factoring in your climate, I'd go 3. 2. 1.

  • geekcohen on 25/09/2023 - 09:41

    Solar followed by heat pump hot water.

    But don't go small and too cheap on the solar, get a big enough system for the house to cover the running costs during daylight. I have a 6.6kw system which that is perfect for my house (4 bed, 2 adults, 2 kids with split systems in two rooms, gas hot water and WFH with a bunch of IT stuff, which uses a lot).

  • tamckinnon on 25/09/2023 - 09:48

    In the past two years we've done 1 and 3. 2 is something we'd like to do but I'm estimating $5-6k for us and it's not high on my list.

    Costs for us:
    1. We decided to a large standalone unit for the living/kitchen area and a multi-split system for the bedrooms. Investment was just shy of 12K. We have a baby so it was running 12h a day almost every day.
    3. We went with a Sungrow 6kw Hybrid inverter, 9.6kw Sungrow battery and 9.36kw of QCell panels (black). Out of pocket expense was $18k after rebates which we covered most via a Green Loan.

    Our electricity the past 30 days is looking to be around $59 (Amber Electric /w SmartShift upgrade).

  • jugsy on 25/09/2023 - 09:56
    +1

    Borrow extra and do all of the above

    • freefall101 on 25/09/2023 - 14:41
      +1

      This isn't a bad option, I did solar via sticking it on a credit card and doing a 0% BT. Made more sense than waiting 6 months to save for it (and risk the government cutting rebates).

      Plus I'd already bought my house, so my credit score doesn't bother me anymore.

    • surg3on on 26/09/2023 - 13:53

      This is good advice as long as you expect to stay in the home 5+ years. The quicker you get these efficiency gains in the faster they have paid themselves off.

  • shhusan on 25/09/2023 - 10:01

    3 to save costs and also be comfortable, followed closely by 1.

  • EBG on 25/09/2023 - 10:03
    +10

    Some good suggestions here but perhaps spend a few months actually monitoring your usage and needs before deciding where to spend your cash.

    • johnno07 on 25/09/2023 - 15:30
      +1

      Yeah just chill out in your new place for a bit. You'll figure out what matters most in the first 3-6 months. It might not be any of the things you have initially considered.

  • 2jzzzz on 25/09/2023 - 10:28

    We are in FNQ and just put in blockout and sheer curtains for $5k. Ordered and self installed from Perth made Blind and Curtain Co. Theyre amazing

    • Hasbulla on 26/09/2023 - 14:37
      +1

      wow.
      $5k for curtains.
      Are they crazy expensive or do you have a lot of windows?

  • azero on 25/09/2023 - 11:12
    +3

    Live in the house for 2 weeks (or until you get the first bills ) and then decide !.

  • dogboy on 25/09/2023 - 12:02

    Solar. My last quarterly energy bill was $50 since getting solar. I am running ducted aircon and a pool as well.

  • gakko on 25/09/2023 - 12:36

    Awnings for outside the windows. Check the ceiling insulation and slap a bit more on if required. Go on a hunt sealing any drafty air gaps. Get a few humidity/temperature meters from amazon.

  • brokenglish on 25/09/2023 - 12:56
    +3

    Spend it on a brand new gaming PC so you can forget all of these problems

  • dtc on 25/09/2023 - 13:17
    +3

    I have a house with exactly the same set up as you. Trouble is, $5000 doesnt get you very far and the 'big ticket' items arent necessarily best bang for buck. Do the basic cheap stuff first and then see where you are at.

    You may want to live in the house for a while and figure out whether your options are the best options anyway.

    In any case, best bang for buck insultation and cost wise - including saving on heating - are

    1. gap filling around doors and windows and anywhere else that leaks. Super cheap but very important
    2. honeycomb blinds and/or heavy curtains. Buy online for blinds, they arent super expensive
    3. insulation. Roof first and then under floor (obviously not if its a slab build)

    (2 and 3 are about equal, so do either)

    That will probably use up your $5000.

    • JoJoker on 27/09/2023 - 09:41

      And get light coloured blinds - the dark ones in my apartment cook the room in direct sunlight.

  • pharkurnell on 25/09/2023 - 13:18
    +5

    4 - put 5000 on mortgage.

    • SoapyWooder on 26/09/2023 - 11:09
      +1

      Yes, at least 5.5% roi

  • cupcake on 25/09/2023 - 13:28
    +1

    Plantation shutters, cctv cameras, high fence, security gates and doors, roses for the garden, nice new fridge.
    Get the roof and gutters cleaned, trees trimmed.

  • surg3on on 25/09/2023 - 13:39

    Time to find out just how old that hot water system is and get it replaced if you can. Sounds like all three items need to happen sooner or later though.

  • apple2016 on 25/09/2023 - 14:06

    Small Solar System

    Depends on where you live. Solar without battery in VIC is not worth it in my opnion.

    • freefall101 on 25/09/2023 - 14:48
      +2

      How so? I've had a 6.6kw system for about 6 months and generated 3mw, using ~2mw. That 2mw usage is about $500 (the export is stuff all) but the system only cost me $4k. And that's over the winter months, summer I'll be generating a lot more.

      Payback time will be about 4 years. But batteries cost $10k and so far I might have saved $200 (difference between power price and selling back to grid).

      • apple2016 on 26/09/2023 - 12:28

        probably your consumption pattern is different to mine. I dont work from home. so consumption is mostly when solar generation in nill except for weekends.
        I have a similar system(6.4) and year till date solar generation was 5.3MWh and consumption was only 1MWh.
        I am still paying about $3k for power in a year. I could save this, if I had a battery.

        • Ten on 29/09/2023 - 09:25

          Or if you can make use of timer delays on appliances you can try to run as much as possible during the day. eg washing, dishwasher, drier etc

  • Protractor on 25/09/2023 - 14:09
    +1

    When you don't factor in simple passive design elements. you lock in a lifetime of high internal summer temps, low winter temps (read increasing years of discomfort) and money /energy wasted on artificially addressing internal temps. The dumbass idea that any of hat can be cancelled with solar energy is dufous logic.
    Upfront solar passive design is so simple,proven,accessible and affordable, it can only be concluded ppl enjoy burning money. Money that represents work and energy better invested.

    The least OP should do is have the house professionally appraised for energy efficiency, to see if can be rescued to a degree.

    • JoJoker on 27/09/2023 - 09:42

      rescued to a degree.

      Nice

  • hothed on 25/09/2023 - 14:43
    +3

    Mortgage repayment?

  • Typical16-bitEnjoyer on 25/09/2023 - 15:27
    +3

    Epic house party. 5k should cover drinks.

  • Powershopz on 25/09/2023 - 15:58

    Nothing. Save it for a rainy day fund for when stuff breaks.

  • AustriaBargain on 25/09/2023 - 15:59

    A new TV with powerful party speaker system. Mini LED looks pretty hot right now for TVs.

  • sam-1966 on 25/09/2023 - 16:10

    Remember when the insulation rebate disaster occurred? I can't remember the year.

    But at the same time, the Qld Govt also offered a rebate for hot water - either solar or the heat exchange. At the start, it was the same for each, later changed when they realised that the heat exchange pump was cheaper.

    Anyway, we updated to the heat exchange pump and haven't really paid anything for hot water ever since.

    We also decided to get ceiling insulation, which we paid for. That also made a big difference. I just made sure I went with a company that had been around for a long time instead of one of the new 'fly-by-nights'.

  • knasty on 25/09/2023 - 16:30
    +4

    85" OLED. Watch it in a singlet when it's hot.

  • localhost on 25/09/2023 - 17:31
    +1

    jacuzzi… will thanks me later.

  • Richardc on 25/09/2023 - 17:35

    heating jacket/blanket, saves tones.

  • stibbzy on 25/09/2023 - 17:59
    +1

    If you have an unshaded north east or west facing roof, and you intend on being in the home for more than say, five years, you are throwing money away by not installing solar.

  • Downvoter on 25/09/2023 - 18:00
    -1

    Double it and put plantation shutters in

  • assailantsky on 25/09/2023 - 18:00
    +3

    Go with the solar system, it actually generates income for you with FiT, and saves you money at the same time. Payback would be 3-4 years if you spend about $3000-4000 on 6.6kw solar system with a quality installer and a cheap 10 yr warranty inverter. Don't be tempted to go premium panels and premium inverter, as you are on a budget and money is limited for now.

    For the remaining $1000, you can improve your house's energy efficiency a lot just by getting good blinds to windows and blocking drafts around the house.

    If you are in NSW, there's a $33 program where they'll replace old electric/gas heaters to heat pumps. https://www.ozbargain.com.au/node/707862

    • Hasbulla on 26/09/2023 - 14:41

      please define good blinds, I'm all ears.
      On a budget, this is Ozbargain, not Homes and Gardens

      • assailantsky on 26/09/2023 - 15:10

        Didn't meant spend $1000 on blinds, but on improving the house's energy efficiency. One of the cheaper ways to do that is to get thick insulating curtains (which are also decorative), they'll keep the house warmer during winter and help keep the cool air in the home longer during summer. I note that the OP already have roller blinds so insulating curtains will help again. Not as effective as double glazing but much cheaper way to go.

      • EBG on 03/10/2023 - 01:13

        Honeycomb blinds are great for insulating too from what I’ve read and you can get them from IKEA etc, or custom made for a lot more $$$

  • Oz em on 25/09/2023 - 18:00

    I got a 10kw solar system for less than $5k.
    I would get solar first. For me it saved the most money long term.
    I have just ordered roller shutters too.
    And I’ve added wall cupboards in the laundry.
    It depends what suits your needs and what you will benefit from the most.

    • shutuptakemymoney101 on 25/09/2023 - 18:13

      What rebates or slight of hand are at play for that cost?

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