Green Real Estate and Education Go Hand and Hand and the Timing Couldn’t Be BetterGreen Real Estate and Education Go Hand and Hand and the Timing Couldn’t Be Better

What a better time to think of value in residential real estate than in the present challenging times. Most are still wondering if the projections of a turn around in the current marketplace are just fiction or truth. Five steps forward and two back, then three forward and three back. So what is really going to drive value for the buyer to buy again? What does a buyer consider in today’s economic climate for the decision to buy a home? Do they think of a home for their family in terms of how their parents looked at the purchase? Do they still think a home is the American Dream where investment returns will be offered in the 6-8% in annual growth patterns as in the past?

The current climate offers a new sales technique for mortgage and real estate companies in moving property. The “short sale” market is of value to the investor, but counter productive for future community values. So, if you want to sell a home in this market, what are your options? The appraiser will always look at recent sales, and there have been several homes foreclosed and resold as short sales in your neighborhood. The bad thing is the family that wants to move across town into a nicer home, but the short sales will affect the value of their home dramatically. Appraisers will look at the most recent sales using the cost approach to determine value. This gives you only one real option to take less for your home, and hopefully buy a short sale across town if any are available. I mean why should we take such a loose; we were always on time with our mortgage and taxes, why are we being so affected by others hard times.

So you don’t sell, because you do not want to take such a loss and there are no foreclosures in the area you want to go. What do you do to build value for the future? What do you honestly think will help your home stand out in front of the others? What do you think a buyer is thinking about today? Low utility bills? Are they considering looking into solar or energy savings? Are they curious about green building and green renovation products? Here is an idea. Put $15,000 in energy efficient upgrades in your existing home, taking advantage of the tax incentives and rebates. Now, depending on the upgrades you have chosen, the property stands out in this development. With offering up to 65% lower energy bills alone a buyer desiring your neighborhood may lean towards your home even if there is a short sale for less money. The timing couldn’t be better as most are curious on how to renovate to lower utility bills. Green renovations, can make a difference in real estate values. Using healthy materials and installing more high efficiency systems will making a difference in quality of life. While economic times are challenging those involved in the energy sector hold promise for growth. Our company, Green Real Estate Education is educating all sectors in the real estate industry to bring these points to those is there markets. Our educational programs are in demand even in these economic times.

Energy Efficient Homes and proper marketing especially if they offer the added benefit of being green certified properties are some of the most sought after residences and gaining strength daily. The entire building industry is changing towards sustainable and green techniques; it’s about time we embrace the new green revolution.

Why Are Reallionaires Chasing Green Real Estate Assets?Why Are Reallionaires Chasing Green Real Estate Assets?

Real estate investors who have been battered by the 2007 financial crisis and subsequent recession have become increasingly frustrated with buying traditional property assets. Yet they remain in no man’s land when making attempts to revive their fortune. To the contrary, investors who have successfully survived the financial crisis, knows that in times of economic turmoil, they must jump ship to stay afloat. As traditional property assets lose their appeal, it is time to look elsewhere. Generally, the average investors typically tend to sit back and wait for the next big booming economic wave. Whereas, savvy property investors spend time creating that new wave in a safe boat.

During the rubble (or collapsed economic cycle 2007-2012), reallionaires have been switching to new property sectors, in particular, green real estate, whilst novices are still buying traditional assets. This newly emerging property sector, green real estate (GRE) may be defined as a convergence between green technology and the reinvention of ageing property assets, such as, car parks reinvented into solar car parks or EV recharging stations. The green property sector consists of property assets, such as, solar farms, agro-fuel estates, landfill gas sites, energy from waste facilities, solar car parks and bio-fuel plantations to name just a few. An astonishing US$211 billion was invested in this asset class in 2010, up by US$51b on its 2009 figures. As a result, green property is the most highly sort after property asset among reallionaires and there are some lucrative reasons why.

For starters, reallionaires are putting their money into the green real estate sector because it has pulling power when it comes to attracting capital. Not only are the World Bank and Sovereign wealth funds lending millions to developers and owners of green property projects, but many financial institutions and private equity firms are also throwing cash at developers of such property assets. As reported in various UK’s Newspapers, property tycoon, Vincent Tchenquiz through his acquisition vehicle, Consensus Group, raised over £71 million from sovereign wealth funds and institutional investors to acquire and develop solar farms, wind farms and bio-fuel refineries in South Africa. Likewise, in 2010, Vattenfall secure £150m from the European Investment Bank to develop a wind farm in Thurness Point, Kent UK.

Another reason why reallionaires are adding GRE assets to their property portfolio is due to the knowledge that it attracts near zero taxes and other types of investment incentives. It is now common knowledge, that the acquisition of green real estate is largely a tax free investment. Under Governments’ legislation in the UK and Europe, investors operating in the GRE sector pay less taxes, in comparison to their counterparts investing in mainstream commercial property. Additionally, capital gains tax is waived on most green property assets, such as, recycling centres. Further, other benefits reallionaires accrue from buying GRE, include, tax rebate, tax credit, carbon credit, Government loan guarantees, grants and feed-in-tariffs. Such incentives and promotional policies helped in making this sector recession proof over the last five years.

Third, but not last, reallionaies are in love with green property assets because, unlike other assets, it offers property investors three to four sources of income. Generally most property assets give investors a rental income (depending on the type of owner structure used). Nevertheless, in addition to rental income, GRE provides investors with carbon credit income and feed in tariff income. Reallionaires become mega rich by acquiring high performing assets that provide them with multiple streams of income. To this end, it is abundantly clear why reallionaires and other super rich investors are chasing green real estate assets.

Green Real Estate – Characteristics of Green Real EstateGreen Real Estate – Characteristics of Green Real Estate

The face of the real estate industry has changed over the fast few years. These changes are primarily due to the changing preferences of home buyers. Today, it is very common to see advertisements from real estate agents and brokers highlighting that homes on their lists are classified as eco-friendly or environmental friendly. Sounds good because you could be helping the environment but what are the characteristics of green real estate that you should look for when you are buying your own house.

Insulations are made from recycled materials

Home insulation is necessary because it affects the hotness and coldness of home’s interior on given times of the day. Insulations have gone far from bearing the color of pink because they have learned to be greener or eco-friendlier. Common house insulations made from recycled materials include old shredded denims, hemp, and cotton. These materials are known to have reduced noise. They also have sealing capabilities. A top-notch choice among green home buyers is insulation made from icynene – derived from used castor oil. It forms spongy-cake substance which can reduce a home’s energy bill to as much as 50%.

Furniture close to nature

When buying a green home, you should also consider the furniture that composes the home’s interior. From tables, chairs, cabinets, shelves, and other fixtures – you should ensure that they are made from sustainable materials. For instance, there are tables made from FSC-certified bamboos and reclaimed teak. Consider the space-saving values of chairs. There are types that can be folded and stored flat when not in use. There are also cabinets and shelves made from corks or the renewable barks of common hardwood trees.

Availability of solar water heater

Water heater is a great necessity in American homes. However, it contributes to a higher energy bill when in regular operation. Green real estate homes have found a comfortable solution to this need with the installation of solar water heaters. With this feature preinstalled in the home you are going to buy, you don’t have to be afraid of paying high energy bill. Solar water heaters utilize the heat of the sun to kill the coldness of the water in shower rooms, bathrooms, and bath tubs. Solar energy-operated water heaters have shelf lives of about 15 years.

Water-saving bathroom, toilet, and kitchen fixtures

There are many plumbing products and fixtures like faucets, toilet bowls, and shower heads that claim they are water-savers. However, it is difficult to prove such claims until you have used them. Some of them were just mere advertisements of the respective manufacturers but the fixtures are actually water-wasters. To be sure that the house you are going to buy is true to its sense of being eco-friendly, look for the WaterSense label on them. The label is an assurance from the EPA that the products will help you save billion gallons of water during the lifetime of the fixture.

If the house you are going to buy has these features, then it is a certified green real estate home. The house will not only offer comfortable living and convenience but it will also be one that is contributor to help save the environment and its resources.