Net Gains The value of connectivity.

Connectivity might not be top of your wish list when buying a house, but Harvey Grennan argues that it probably should be.

When we bought a home in sunnier climes a few years ago, the agent conveniently failed to mention there was no internet connection (and no TV signal, for that matter). It took many weeks to finally sort out the problem with Telstra.

So when we recently moved again, to a more familiar, wintry region, I made sure to ask a friend whether

NBN was connected. Yes, and the ‘node’ was less than 100 metres from our prospective residence.

But connecting to that node proved challenging. No NBN, no ADSL, nothing. In November we were told January, then February, then the end of April. We were told there was a ban on connecting ADSL while waiting for NBN. Anyone buying a new house would have to wait. A Telstra employee told me many home buyers in new housing estates have been caught without internet. A journalist without internet is like a drug addict on a desert island without even a recipe for kava to get you through. As a stop-gap, I opted for a mobile dongle, which saved the day – but poorly.

For most people, the internet is a portal to many of life’s necessities – news, Netflix, shopping, banking, social media and contact with government agencies. The importance of fast, reliable internet is doubly important now, when millions of Australians are working from home.

So it’s important to ask when you’re buying a house if the NBN is connected and what internet speeds are achievable. There is not much evidence yet that good connectivity has been a factor in boosting Australian house prices but that could change. A study in the UK showed that property prices increase on average by about 3 per cent when internet speed doubles. A US study also came up with a 3 per cent gain with a fibre internet connection.

“If you’re appealing to inner-city professionals, work-from-home residents or millennials, fast NBN and good mobile phone reception would add value for those people, and assist a sale,” says Shannan Whitney, director of Sydney real-estate group Bresic Whitney.

“Connectivity is an important part of peoples’ lifestyles and the way we see that play out in property varies. An NBN connection might be key for some; complete ‘smart home’ fitouts are more important for others.

“We’ve seen owners intent on putting ethernet ports in every room and others who connect all their tech wirelessly. Ultimately, the more widely accepted these connections are, the more people can imagine the way their tech life will play out,” he says.

“Just like presentation or property styling plays a part in sparking our imaginations, if we can imagine ourselves living there, that’s adding value,” adds Whitney. “And if we understand who we’re trying to connect with, those needs are going to be different – from students to young families to retirees or tree-changers looking to disconnect.”