The Eco Revolution in Property Investment

Many of us are now making more eco-friendly and environmentally conscious decisions every day. Whether it’s taking our own carrier bags to the shops, having a reusable water bottle or recycling your tin cans – little changes are making a big impact. When it comes to property, the eco revolution has increasingly been making waves. From solar panels to energy efficient light bulbs, our properties are becoming better for the planet. These priorities are also affecting property investment, with an increasing number of tenants looking for eco-friendly essentials in their property.

Eco-friendly homes are becoming increasingly popular with a new environmentally conscious generation starting to look for rental properties. Young professionals who are living in the city are less likely to buy a home than ever before, so are looking for a rental property that meets their exacting requirements. With many of them choosing to make environmentally friendly choices, like going plastic free or cutting down on how much meat they eat, accordingly they are looking for eco-friendly homes too.

Environmental impact is increasingly on the agenda of consumers in every aspect of their lives. Many are also willing to pay a premium for eco-friendly purchases. Research has shown that UK consumers would pay an average 10% more if they were buying something they thought had a positive impact on society. Property investors would be wise to bear this in mind when looking for new property investments. In an increasingly competitive rental market, the ability to raise prices because of eco credentials is a lucrative option for investors.

Furthermore, 40% of consumers think that sustainability is important when they are making a purchase. The impact of this can be seen in the growing number of brands and businesses that are making their environmental commitments obvious to consumers. It is clear that savvy property investors can be both environmentally friendly and business smart when looking to purchase new properties.

In another study, 80% of tenants believed that their landlords should be considering the environment more, and suggested measures like double-glazing, insulation and eco-modifications. These simple measures can make a large impact on the appeal of a property to prospective tenants. Increasing energy prices are another concern for occupants. In addition, 55% of renters asked said they would prefer a rental property with a smart meter if it was the same price. Energy efficient measures are both good for tenant’s monthly costs and for the environment so buy to let property investors can be at an advantage if their property offers these.

As of April 2018, buy to let landlords are legally required to have an EPC rating of E or above in their properties. This means that property investors are increasingly looking at new build properties which are already energy efficient and don’t require costly renovations. Tenants can also legally request that a landlord makes property improvements if the EPC rating is F or G.

Developers are increasingly taking sustainability and environmental impact into consideration when building new properties. Properties with energy efficient specifications, like many by RW Invest  are providing investors with lucrative returns and high tenant demand. Recent changes to regulation mean that new build properties need to be energy efficient and this is making a huge impact on the buy to let market.

The trend towards environmentally conscious properties looks set to continue, with eco-friendly qualities high on the agenda of both potential tenants and investors.

Green Home Improvements to Attract Homebuyers

People’s desire to make a smaller footprint on a vulnerable planet affects the real estate market worldwide. In part this is due to the Internet’s power to inform and inspire, and it is partly due to who is buying the most homes. Millennials have made up more than half of homebuyers over the last few years. And millennials, surveys have shown, are willing to pay more for sustainability and the greenest possible living.

They often opt for new construction with the highest eco-friendly standards, but not every buyer will purchase a new home. Some millennials are not ready to make that financial commitment, and some will not be buying in trending locations that have lots of new green construction. So to attract buyers to an existing home, green home improvements can be a big win. Not only will the homeowner be doing the right thing by the planet, but also homes can sell faster and for more.

Although making green changes to an existing home can be complicated and expensive, there are many levels of improvement that vary in cost and difficulty.

What Meets the Eye

Green upgrades the buyer can see in an existing home make a difference. If you are upgrading, you can go more sustainable and energy-efficient in these areas:

  • Non-toxic paint: The volatile organic compounds (VOC) in some paint can damage air quality and lungs. Choose a low-VOC paint to get that fresh, neutral look buyers want.
  • Sustainable flooring: Replace worn-out floors with highly renewable bamboo, with responsibly grown and harvested hardwoods, or with natural linoleum products.
  • A cool roof: Renovate the roof with light-colored materials that reflect heat.
  • Energy-efficient appliances: Update the kitchen with appliances, and even faucets, that run on less energy and/or use less water.
  • Native plants: Refresh the landscape with plants native to the environment, that will need less specialty care products and that will support local ecology.

Energize

Green changes that make a home energy-efficient will attract buyers and also give sellers the ROI of an eco-friendly home. Because they save money, these improvements also make money and bring return on investment.

  • Update to a Smart Thermostat: A programmable thermostat ensures heating and cooling meet your needs without waste.
  • New windows: The U.S. Department of Energy reports that 25-30% of energy costs literally get sucked right out of old windows, where leaks in both directions waste resources and money. New windows also beautify a home.
  • Weather protection: If new windows are not an option, caulking and weather-stripping are also efficient.
  • Tankless water heater: Upgrade an old water heater that needs to go anyway with a tankless one, that heats water as needed. Why waste energy heating gallons of water all the time?
  • Recycled water: Systems for catching rainwater, or holding water from sinks and tubs (greywater) can save waste and money. This water can flush toilets and water gardens, among other uses.
  • Renewable energy sources: Depending on the climate, solar panels and/or wind turbines can provide energy in place of using other, non-renewing resources.

Before making green improvements, research is the seller’s best tool. Understand the options, costs, and benefits. An experienced real estate agent can advise on what green improvements are most wanted and bring the best ROI in the local market. Also make sure the home is appraised by someone experienced with green features, to make sure their real value is represented in the appraisal.

Don’t Wait Until It’s Too Late – Go Green Today

If you are looking to sell your home or are just thinking about doing some upgrades to make it more attractive when you do finally sell it, studies show that making your property more eco-friendly will make it more attractive to potential buyers. If you want to get specific, there are some upgrades that not only help the environment by reducing the home’s energy consumption, but at the same time provide a return on the investment of more than 100%. This is not just an empty promise as every year sees an increase in home construction that includes the latest in environmentally friendly technology.

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It is no secret that technology is helping every industry develop at supersonic speeds. With the continued threat that rapid urban development brings to the environment. it only makes sense to use new technology to create better construction methods that are less harmful to the environment and more affordable to the homeowner. Jump on the go green opportunities available today and commit to making a better tomorrow.

Be Both Ambitious and Realistic

As you might expect, some upgrades are going to cost more than others. Want to add solar panels on top of the roof? First you have to check with your HOA, if you have one. Then you need to check the financials of the project. The upfront cost will vary from one installer to the next, and the rebates and incentives that encourage you to change in the first place will also vary depending on your home state.

If installing solar panels on your roof is not in your budget, there are plenty of other options to choose from. Everything from changing your insulation to never buying bottled water can have an impact. Changing the number of days you water your lawn or the amount of time for each sprinkler. Try reducing the amount of time you spend in the shower by just a few minutes each day.

All of these savings can add up and help reduce your carbon footprint over time and not only do you not spend money, but you can save money when it comes to your utility bills.

Don’t Forget Tax Season

Using your home as a tax write-off is so obvious it’s a huge reason many people buy homes in the first place. The important thing to remember is that you aren’t the only one who has a vested interest in making your home eco-friendly. The IRS has entered the discussion and extends tax credits based on different upgrades made to the home for environmentally friendly purposes. And since employing a special tax attorney may not be in your budget, there are other feasible ways to examine your financial situation as it impacts your taxes, and whether or not there are any discrepancies that need to be taken care of.

Once you have your overall financial situation looking a little clearer, don’t just be content with the usual write-offs consisting of interest payments and the like; consider all of your options and make an upgrade that pays for itself. The point is, being proactive and taking the initiative to make your home more eco-friendly is not only affordable, it is also rewarding.