The world is becoming a much more eco-friendly place overall, with more people taking steps to improve their carbon footprint and live a more environmentally conscious lifestyle. In order to cater to this growing number of eco-conscious individuals, a lot of property investors are now choosing to purchase buy-to-let properties with more eco-friendly features. If you’re considering making a property investment yourself, it might be time for you to go green. But why exactly can eco-friendly property investment make such a successful venture?
Aside from improving your carbon footprint and helping to promote a more eco-friendly future, investing in a ‘green’ buy-to-let property has a number of benefits. In the UK, one of the most desirable types of tenant to rent a property out is young professionals. Young professionals make up some of the largest levels of tenant demand in property hotspot cities like Liverpool and Manchester, with more and more young people choosing to live and work in these cities each year. Since these type of tenants are often more willing to spend larger amounts on a property that fits their needs, those investing in buy-to-let properties that appeal to this demographic can often expect a larger return on investment thanks to higher rental costs.
Millennials (those born somewhere between 1981 and 1996) are considered more environmentally conscious than generations before them. A recent study found that millennials were more likely to shop eco-friendly products or brands thanks to a strong awareness of environmental issues. This means that investors hoping to appeal to a younger tenant should definitely consider buying a property with eco-friendly features such as those from RW Invest, who offer new build apartments with amenities like smart lighting and modern low carbon technology.
Another benefit of more eco-friendly properties is the fact that they’re often a lot cheaper to run. New build properties, for instance, tend to be well insulated and include secure, high-quality windows that keep the heat in and reduce the need for central heating. When put to the test, it’s been revealed that new build properties have significantly lower running costs than older properties. For example, a one bedroom ground floor flat built in the Victorian era is £440 more expensive to run than a new build home built according to 2013 regulations. For buy-to-let investors, cheaper running costs could mean that tenants will have a more highly-rated experience in their property and be more willing to spend larger amounts on their rent due to spending less on maintenance costs.
When it comes to capital appreciation, eco-friendly properties could also give investors a good chance for growth in value. Eco-friendly homes are often sold at higher prices than typical properties, and with the world only expected to become more environmentally conscious in the future, there’s plenty of reason to believe that these properties will become more popular in the future. To better your chances of high capital appreciation on an eco-friendly property, consider investing in areas with a lot of growth potential such as the north-west.
If you do decide to invest in an eco-friendly property, think about further ways to encourage your tenant to live a more forward-thinking lifestyle. This could mean providing a recycling bin to easily transport recyclable goods, filling the property with non-toxic cleaning products, or leaving a supply of energy efficient light bulbs.
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