Green strategies to increase yields
Oftentimes when people hear the word ‘green’ they automatically think expensive. This is because when the environmentally-friendly movement or ‘green strategies’ first began, it was true.
Modern technologies and eco-friendly building materials typically used to cost a lot more because of low demand and high production costs, but as more and more companies enter the market and demand grows, prices are beginning to drop.
A push from younger generations, innovative ideas and hints of climate change effects has motivated a host of changes in the building industry that can be adopted to varying levels of compliance.
Upgrades
While it may seem easier to build something with green functionality from the ground up, there are actually many simple ways to upgrade existing structures to achieve similar results.
Recycled materials and renewable wood products – that is, trees sourced from replanting forests – are a great choice for building in an ecologically responsible way.
Insulation is a very important aspect of any building – filling the walls with high-quality lining will allow for better climate control and bring down heating and cooling costs.
Replacing old windows with glazed alternatives will also help to keep energy in and will be reflected in your monthly energy bills.
By replacing leaky faucets and running toilets with modern substitutes, you will save a huge amount of the pressure resource and pay less on your water bill.
Smart tactics
While it is true that going green can incur a larger cost at the outset, thorough research and smart decisions can mitigate the difference.
Local networks can help you locate affordable options and carry out the work quickly and properly.
The Australian government has also dedicated grants and funding toward green construction, making it more accessible to all.
Environmentally-friendly and effective ‘green strategies’ will help you to achieve higher yields on your property investments through long-term savings and tenant appeal.
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It would be interesting to know the market interest in greener houses. ie are there people around interested in paying for a green sustainable house? I think there would be. Will do some research and get back to this.
Cheers,E.
In the main tenants couldn’t give a toss about green initiatives. Eco friendly products don’t feature on their “what do I want” lists. What does interest a tenant is climate control and energy.Climate control is a design feature. Warm in winter cool in summer. Couple that with energy efficiency and month to month cost savings and you’ll get their attention. These features attract a premium so are worthwhile investments.
Energy isn’t getting any cheaper comparatively so investing in energy saving options is a worthwhile endevour over the long term. If you can implement this at the design build stage it’s a far better option than retrofitting.
Yeah – I agree. I was chatting to a work colleague today about this and he said that his solar panels have reduced his electricity costs to zero plus he actually gets a cheque for the excess made from the panels which then pays for his gas bill. So he basically has not paid for a power bill since installing. He said it will take about 6 years to pay off. I know this is not a saving that is passed onto you as an investor, but I think it would definately be something that would help retain tenants, and also be able to be massaged into the rental price.