Real estate investment is a lucrative business activity, as you can see your money grow over the years. From yielding regular rental income to delivering high profits on resale, it has everything a savvy investor can look for. But everything boils down to choosing properties with excellent rental and resale potential. Of course, factors like property type (residential or commercial), location, design, and features matter. But you can maximize the investment potential by opting for green real estate investments. The best thing about picking these options is that you get to do your bit for the environment. But choosing sustainable properties takes good thinking. You can rely on these green real estate investment secrets that eco-conscious investors follow to pick wisely.
Start with the location
The first step is to look for the right location, as it goes a long way in determining the sustainability of a property. For example, an accessible area connected by public transport is an excellent choice because it translates into a lower carbon footprint for the residents. People can reach through public transport instead of private vehicles, so you can imagine the impact such locations may have on the local pollution levels. As an eco-conscious investor, you can dig deep into factors like environmental due diligence and wetland maps to ensure a green location. Also, Greenfield projects are better from the environmental perspective because these locations inherently are clean, green, and non-polluted.
Check the features
This one is a no-brainer for any real estate investor, even more for eco-conscious ones. Properties following the green design concepts are a good choice because they save energy, optimize space, and promise well-being for the residents. Likewise, buildings using green materials get brownie points as sustainable real estate investments. Features like solar installation, water-saving fixtures, energy-saving appliances, and home automation are valuable for investors with a green mindset. The best thing about such buildings is that they assure high rental values and excellent profits on the resale. You can even claim solar ITC to save on tax bills and get credits as incentives for green investment. Following the features checklist definitely puts you in a vantage position as an investor.
Collaborate with green developers
Another unspoken secret of eco-conscious real estate investors is to work with like-minded developers. You can look for green development companies that follow sustainable building practices such as location due diligence, green designs, locally-sourced materials, and resource optimization. Knowing that the developer has done their bit to ensure sustainability for the project gives you peace of mind. Moreover, you need not worry much about digging deeper into the green factors if collaborating with a reputed business owner. In fact, you can consider a long-term partnership to stick to the mindset for good.
Sustainable real estate investment sets you up for profits and growth. More importantly, it is your chance to give back to the environment. But you may fall short of the knowledge to assess properties and pick the right ones for your portfolio. These simple secrets can help you choose wisely and stay true to the mindset for the long haul.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin