Going Green: 4 Main Benefits in Any Real Estate Market

Go green in real estate

Going green is the single greatest advantage for any real estate investor in any real estate market.

According to Jim Simcoe, Green Business Strategist of Simcoe Consulting, there are 4 Main Reasons:

Bigger Pockets- Put simply, green properties sell (or rent) faster and for more money. Green properties cost less to operate (usually 30-60% less) and are more valuable. In fact, they appraise average of 10-15% higher than a comparable home according to a study done by SmartMoney in 2008.

Higher Demand- The demand for green properties (SFR, rentals, commercial, multi-family, etc) continues to skyrocket. As consumers become more educated about green living they are more frequently demanding green elements. ‘Green’ used to be only for the tree-huggers. Now it’s for anyone who wants lower utility bills and a healthier, more comfortable place to live or work. The fact that ‘green’ is en vogue right now is a bonus.

Limited Supply- Green homes continue to account for a very small piece of the residential marketplace. Even with builders and rehabbers hopping on the green bandwagon, supply is far less than current demand. It will be several years before this ratio starts to even out.

Free Cash!- Right now there are literally billions of dollars available to real estate investors to either build or rehab green. Money is available through a variety of rebates, incentives, tax credits, etc for all levels of green property upgrades. From $2 lightbulb rebates to $250,000 subsidies for green building, the incentives are there. A great place to find them is the Database of State Incentives for Renewables and Efficiency.

During any remodel, rehab or new construction, ask yourself:

1. What can I do to make this property operate more efficiently?
2. What can I do to make the building envelop more tighter with less gaps and leaks?
3. What can I do to improve the indoor air quality of this property?
4. What materials would make this property less toxic/healthier?
5. What rebates/incentives/credits are available to subsidize #1-4?

The answers to those questions will create the basis of your strategy for your property. Creating high-performance (re: Green) is as simple as that.


Source: www.JimSimcoe.com


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One response to this post.

  1. Who wants not lead a healthier life? Obviously everyone. Most important part of our healthier living is healthy food. I think naturals are always better than other. So, I like to be stick with any type of natural food not only milk. I believe the most important part of our healthier living is healthier food.
    Our Healthier Living

    Reply

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