One of the hottest trends in real estate investing is in green retrofits, buildings upgraded for resale with eco-friendly and energy-efficient materials, products and features. The trend is already well established is the commercial sector. Now investors are eying the residential market as well. These top six tips can help guide investors to sound eco real estate deals.
1. Up and Coming Areas and Green Builds
Just like conventional real estate investing the area is very important the investing advantage with London is that many areas are now getting massive investment and development and in a very green way. From more local parks to buildings with eco features and build with sustainability in mind. The standards are getting stronger so you will have a very well-constructed building to appeal to eco conscious people.
2. Top Eco Residential Real Estate Features
Proven energy-efficient technologies and features that will increase the value of a home include energy-efficient windows, Energy Star appliances and electronics, high-efficiency insulation, water-saving plumbing fixtures and photovoltaic hot water heating systems and energy systems.
3. Energy Performance Score (EPS)
The non-profit organization Earth Advantage Institute developed the Energy Performance Score to establish a standardized comparison of energy-efficiency features in the residential market. The criteria includes assessments of a home’s insulation, heating and cooling systems, lighting and appliances. The rating also includes a carbon-footprint score based on type of fuels used.
4. Home Energy Rating Score (HERS)
Investors should look for ratings that verify energy savings. Established by the non-profit Residential Energy Services Network (RESNET), the HERS Index scoring system rates homes according to specific energy efficiency on a scale from zero to 100. The lower the score, the better the home’s energy efficiency. RESNET also certifies home energy professionals as well.
5. Changing Expectations
while eco-friendly materials appeal to many homebuyers, most homebuyers entering the market today are looking for home improvements that will substantially lower the home’s energy costs without adding too much to the upfront costs. As energy costs continue to rise, experts expect that attitudes will change significantly within the next five to 10 years and predict a time when homes without energy-efficient features will be viewed as “energy fixer-uppers.”
