Property Investor News | Going Green

SUSTAINABLE INVESTMENT PROPERTY: WHY GOING GREEN COUNTS

Caring about the environment we live in: it’s not merely the concern of your dread-locked cousin or raw vegan best friend. Increasingly, savvy property investors are turning their focus towards ‘greening’ their assets – driven not only to reduce their environmental footprint, but to improve their return on investment in the long-run, too. Here’s why your investment property eco-friendly makes perfectly good sense.

Attract more tenants, improve returns, reduce wear and tear
Want to create an appealing point of difference for your rental property and improve the potential of your monthly rental yield? Consider ‘greening’ your investment and attracting a new sector of the rental market! Depending on the location of your property, you may have a tenant community intensely focussed on sustainability – a group who would pay a premium for a home that has a reduced environmental footprint thanks to careful insulation, cooling, solar energy and low-energy fittings.

Such a home necessarily costs less to live in, which means that your tenants will enjoy lower monthly utility bills and a bigger budget to spend on renting your home. Happy tenants are also likely to be more permanent tenants – minimizing your re-letting costs and the associated property wear and tear of tenants moving in and out of your investment.

Tax matters
Many ‘greening’ improvements to your investment property are tax deductible – which includes repairs, maintenance and servicing of appliances within the home (taking into account hot water systems, air conditioners and insulation).  You may also be able to claim additional deductions with a depreciation schedule featuring your property’s green credentials -which makes installing that eco-friendly new hot water system or investing in solar power for your investment property additionally attractive! Speak with your accountant to learn more about the benefits of depreciation schedules and other tax deductible ‘eco’ improvements to your investment property.

How should you ‘green’?
There’s lots of ways to improve your investment property – upping its eco-credentials, making it pleasant and efficient to live in year-round and more appealing to potential tenants (and purchasers). Get started immediately with basic maintenance items: fix dripping taps, block draughts, change to eco-flow shower heads and install heat-saving curtains with pelmets. Think long-term by investing in solar energy, eco-rated heating and cooling systems, installing appropriate insulation and replacing downlights with low-energy alternatives.

If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Senior Investment & Property Manager, on 9651 1666 or anna@guardianrealty.com.au

Important note: Clients should not rely solely on the content of this newsletter. All endeavors are made to ensure the content is current and accurate however, we make no representations or warranties as to the accuracy, reliability, completeness, or currency of the content. Readers should seek their own independent professional advice before making decisions.