What’s up Green Real Estate Investors and welcome back to the Greenhabbing 101 blog. Let’s talk about all of the advantages of Investing in Energy Efficient Homes.
Investing in energy efficient homes may be the next best thing for investors looking to leverage their entry in eco-friendly properties. As gas prices continue to climb and demand for cleaner, more environmentally sound lifestyles increase, the prospect of being able to provide properties with high efficiency is becoming attractive to more investors. Is this the right option for you?
Advantages of energy efficient homes:
Investing in properties that run on green energy can reduce a homeowner’s carbon footprint. The use of green sources of fuel has shown to reduce greenhouse gas emissions, considered as the cause of many different problems in the environment. Energy efficient sources of power can also offer considerable savings and an excellent return on investment over time. Homes with high energy efficiency are also a very profitable venture for investors and property owners due to the home’s increased value!
Benefits to investors:
The main challenge for people who wish to invest in energy efficient homes is shouldering the cost of installing environmentally sound facilities and replacing existing ones. Renters are also less likely to pay for improvements since many of them do not intend to occupy the property for a long time.
However, there are several cost savings that both landlord and tenant should consider carefully. These include:
Increase in rents
This may seem like a disadvantage for renters but the truth is that offering a rental property that utilizes green energy is a win-win situation. It is not necessary for the landlord to shoulder the cost of the investment on his own since tenants will be paying for energy bills. Renters also do not have to invest in property they do not own.
As a result, landlords can recoup their initial investment by raising rent on such a level that will allow renters to enjoy savings at the same time. If, for example, the a monthly savings on energy amounts to $80, the landlord may charge an extra rental cost of about $65. Even with this increase, the tenant can still enjoy about $15 savings each month on the house rental. In this arrangement, the tenant saves money and the investor earns.
There are government incentives that investors can take advantage of should they decide to commercialize property that use green energy. There are programs, such as those implemented in New York and Maine that offer financing for owners of rental properties. This helps bring down the cost of investment further.
There are environmental and economic reasons why real property investors should consider promoting energy efficient rentals. Not only is it possible to cut down on energy cost, there are also long-term benefits that allow business owners to make small steps towards supporting environmental causes.
If you are interested in learning more about investing in Energy Efficient Homes, email: Ryan@InTheNowInvestments.com and request a 30 minute strategy call regarding green investing strategies and how you can increase your profits by investing in green homes.
Ryan and In The Now Investments has been able to assist over 100 investors/homeowners with decreasing their utility bills and increasing the value of their home/rehab project.