Just like ccalc was a revolutionary idea in the eighties the same way green real estate is a new concept today.
The environment can play a role in ones real estate investment strategy to both reduce costs and employ some of the newer technologies. The financial benefits can out wieght the higher cost associated with green properties. The real benefits are easily quantifiable both short and long term equally, by combining the right financing method, target tenants and maintenance cost savings.
Currently there are more than just green businesses, schools and institutions, there are also green mortgages. A mechanism through which families can access real estate properties more environmentally friendly. It is a fact that everyone should take a responsible attitude to contribute to reducing pollutant emissions that affect our planet every day. This is important to start in our own real estate investment endeavors.
Some of these mortgages have great economic benefits, which involve the incorporation of these new technologies in properties by allowing the increase in the credit to the person buying the green house. Also using green technology financing that provide further savings, which are reflected in energy savings for water heater using solar panels, the use of low energy lighting while helping protect the environment.
The real benefit of green mortgages is on the savings can come after the investor guys the real estate property, this comes not only from lower energy costs but also from tax deductions that are now available. The intention behind these mortgages is to incentivize investors to choose green real estate properties over conventional ones. From an investment perspective it also provide an incentive for tenants to pay higher rent premiums in exchange for lower utility bills and usage of modern technologies. If higher end properties which usually attrack tenants with more educated social circles, this can be a great branging item.
The down side is that the cost of green real estate is higher than conventional ones, therefore the investor is better served by balancing the cost savings of the green mortgage against the higher cost of the initial investment. Additionally quantifying the benefit of possible higher demand due to short supply of green properties available for rent could also play an important role in the investing decision.
Before buying a green property first check the conditions required to qualify for the banks's green mortgage program, which may vary from bank to bank. Investing in green houses needs to be a partneship endeavor with the lending instiution one plans to use to finance the property; unlike conventional properties not all banks offer special programs for green houses, but the property physical requirements for mortgages do not vary greatly from one bank to the other. If green mortgages pick up momentum all banks might offer green mortgage programs in equal measure as conventional mortgages. This could provide a real beneft to the environment at the same time standardize the requirements of greem mortgage programs.
Green mortgage programs are not just for new homes, home owners can convert their existing homes green and the seek refinancing with lending institutions that offer green mortgage programs. Changing electric appliances with energy star and other alternative energy models is a great way to start turning your house greeen; Green appliances provide multiple benefits:
a. They provide tax benefits
b. The purchase receipt is valid enough proof to get tax credits and qualify for green mortgages
c. The lower you utiity bills
Solar panels and water wells are also great improvements that can help your house become green. Other tips to turn your house green are more life style changes rather than tangible changes that can be proved, thus not yielding any tax-related or mortgage benefits. It is also important not to go over board, the improvement need to save energy and reduce pollutants in the environment, but they should still keep your home functional. The real goal is not to eliminate the technological advances mankind has made, rather to replace them with new technology that is more in tune with the environment. For instance illuminating ones house with candles versus electricity is hardly a viable option if one is unable to read a book at night without damaging ones eye sight.
Another long term benefit that could possible be obtained, is the fact that inevitable there could be future laws passed to enforce every property to be green; which would signify a huge cost on investors forcing many to exit the market, whereas the investor who already owns green properties is not impacted since his/her investments are already green.
In summary green houses can provide additional financial benefits with investing in real estate, these benefits can be realized in the form for green low interest rate morgages, lower maintenance costs and higher tenant markability; all of which are quantifiable. The real benefit of green properties is to the environment, doing so can provide an additional benefit- reputation of being an entepreneur who cares about social issues.By: realbench.netArticle Directory: http://www.articledashboard.com Real Estate Investment Software
Leave a reply