Environmentally friendly homes now making financial sense for investors

Buying sustainably has now become a central focus for home buyers and property investors due to increased environmental awareness as well as the rising cost of energy.

Energy-efficient homes are highly sought after and buyers are willing to pay more for a home with lower operational costs and for investors this is better for their cash flow.

But sustainable living is more than about protecting the environment; there are also tangible financial benefits from making your property more environmentally friendly.

Property buyers are showing a preference to sustainable properties who are also willing to pay a premium for homes with eco-friendly features that lower their carbon footprint and with lower running costs. There are practical ways to make your property more sustainable, which can also add value and increase returns if you are an investor.

Making your property more sustainable is not just a wise decision for the environment; it’s a strategic investment that can increase your property’s value.

From energy efficiency and renewable energy solutions to water conservation and smart technology, sustainable improvements are increasingly recognised as valuable for buyers.

Investors are looking for homes that offer long-term savings, reduced environmental impact, and healthier living environments. By incorporating these eco-friendly upgrades, your property can be more appealling because a home constructed or renovated with sustainable materials will stand out in the market, increasing its value and appeal.

1. Sustainable building materials

When renovating or building, consider using sustainable and eco-friendly materials when renovating or building. This will reduce your environmental impact and also create a healthier environment for occupants, because sustainable material often contains fewer harmful chemicals.

Reclaimed and recycled materials

Reclaimed wood, recycled metal, and other salvaged materials can give your home character while reducing the demand for new materials. Using recycled building materials also cuts down on waste and can lower the cost of construction.

Bamboo flooring

Bamboo is a highly sustainable material because it grows quickly and doesn’t require replanting after harvesting. It’s a durable, stylish, and eco-friendly alternative to traditional hardwood flooring.

Non-toxic paints

Opt for low-VOC (volatile organic compound) or no-VOC paints, which are healthier for indoor air quality. Conventional paints release harmful chemicals into the air as they dry, which can contribute to air pollution and health problems.

2. Energy efficiency

By enhancing a property’s energy efficiency, it is not only more sustainable by consuming less power, but it will also reduce carbon emissions to be more environmentally friendly, and your back pocket will also benefit from lower energy bills. A property can be made more energy efficient through:

Upgraded insulation

Proper insulation in the walls, roof, and floors prevents heat loss during the winter and keeps your home cooler in the summer. This reduces the need for heating and air conditioning, saving energy.

There are many eco-friendly insulation materials available, such as recycled cotton, sheep’s wool, and cellulose made from recycled paper.

Double-glazed windows

Double or triple-glazed windows are designed to reduce heat transfer, helping to maintain a consistent indoor temperature. Not only do they reduce energy consumption, but they also enhance noise insulation, providing added comfort.

Energy-efficient appliances

Replacing old appliances with energy-efficient models is a simple yet effective way to cut down energy consumption.

Look for products with high energy efficient ratings. Appliances such as refrigerators, washing machines and dishwashers that meet energy efficiency standards consume significantly less power, leading to long-term savings.

LED lighting

LED bulbs use up to 85 per cent less energy than traditional incandescent bulbs and last much longer, reducing energy costs and the frequency of replacements.

3. Renewable energy sources

Investing in renewable energy sources like solar power can significantly boost a property’s sustainability credentials and significantly reduce the cost of running your home. Solar panels are the most common option for residential properties, but wind turbines and geothermal systems are also viable, depending on your location.

Solar panels

Solar panels are extremely popular and allow you to generate your own electricity, reducing a property’s reliance on the grid and significantly lowering energy bills.

The only downside to solar is that the initial cost for the installation can be high, however, there are government incentives and rebates that assist to offset a portion of the expense. In some areas, your excess power is sold back to the grid, creating a potential income stream.

Solar hot water systems

A solar hot water system uses the sun’s energy to heat your water, reducing the need for electric or gas-powered systems. This can lead to significant savings on utility bills while also lowering the property’s carbon footprint.

4. Water conservation

In areas that are susceptible to drought, value can be added if your property has water conservation measures. Being able to reduce water usage not only helps the environment but can also lower utility bills.

Rainwater harvesting systems

Installing a rainwater harvesting system allows you to collect and store rainwater for later use, such as in irrigation, flushing toilets, or washing clothes. These systems can reduce reliance on municipal water supplies and reduce water bills.

Low-flow fixtures

Upgrading to low-flow faucets, showerheads and toilets can drastically reduce water consumption without sacrificing performance. These fixtures are designed to use less water per minute while maintaining water pressure, helping you save water and money.

Drought-tolerant landscaping

Incorporating native plants that are adapted to your region’s climate can reduce the need for irrigation. Xeriscaping, which involves designing landscapes that require little or no supplemental water, is another great option for homeowners looking to conserve water.

5. How technology can help

Smart home technology can complement sustainability efforts by optimising efficiency and reducing waste.

Smart thermostats record your household’s heating and cooling patterns and automatically adjusts temperatures to save energy, whereas a smart irrigation system will monitor local weather conditions and soil moisture levels to adjust watering schedules.

Energy monitoring systems will allow you to identify areas where energy is being wasted and adjust habits accordingly.