Save the Environment by Investing in Green Buildings
Energy-efficient buildings could be great long term investment options, though it’s important to get the basics right.
TradeZero Ocean Place Cable Beach, Unit #1 Nassau, Bahamas
In conventional or online stock trading, it is important to identify trends. Trends are those that can be mere short term currents or more long term effects. In investing, you can find one such trend. It’s the trend of going green that’s rampant everywhere. Energy-efficient appliances, energy-efficient mobile phones, energy-efficient vehicles, and now energy-efficient buildings as well. So how good is it as an investment option? People go energy-efficient not as much to save the environment - though it significantly contributes to that – as much as to save precious money by reducing operating costs. But with 40% of energy consumption in the US by residential and commercial buildings, according to the US Energy Information Administration, the impact on the environment will surely be significant as building investors look for energy-efficient properties. Pros and Cons So let’s look at the advantages and disadvantages of this. Yes, there are some cons involved but let’s look at this in a more holistic perspective. •
As far as running costs are involved, energy-efficient buildings can present you with absolutely nothing in terms of utility bills, provided they are built in the appropriate locations.
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There are tax credits worth 30% provided for all solar energy systems all the way through December 31, 2019.
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Moreover, there is a greater appraised value for a green building. That helps during resale time.
The only disadvantage here is the higher upfront costs of buying or constructing an energy-efficient building. But the tax credits could compensate for much of that as do the reduced repair costs and greater energy savings that are part of a green building. When you’re making the investment, make sure you calculate the upfront costs with the possible long-term savings. Ensuring That Buildings Maximize Energy Efficiency Remember what we said about energy-efficient buildings being in the right places, by which we mean the right physical location? It is true that green buildings reduce the carbon footprint by utilizing solar, geothermal and wind energy, but they must be in the right location to ensure that they have uninterrupted access to these natural assets. The building too must be architecturally brilliant to benefit from renewable energy. So when you’re investing in a green building, you need expert opinion on whether it has been constructed in a manner in which the use of the renewable energy sources can be maximized.
www.tradezero.co
+1.954.944.3885
To their favor, green buildings have a greater lifespan because of the smart materials used. This ensures better ROI. It’s just that that initial price tag for a green building is expensive but, as we’ve mentioned before, you can benefit from the lesser operating costs and tax credits to complement that, and don’t forget how the high upfront cost helps in resale too.
www.tradezero.co
+1.954.944.3885