Trends in Green Real Estate Investing or Green Rehab investing are quite telling for what is to come in the future of the real estate and construction industry. Of course, not all properties are going to fit the criteria needed by investors to implement a green rehab, but there are thousands that will and having the knowledge you need to successfully pull off a green remodel will differentiate your properties on the block getting you more buyers while simultaneously producing an asset with a much higher long term ROI.
What does the future of a green rehab look like? Whether you're in commercial, residential or multi-family properties, investor's, developer's and managers are adopting greener business practices (along with the rest of the world). The drive for such behavior is based on favorable financial returns on greener buildings as energy prices begin to soar and owners realize the significant savings afforded by thoughtful sustainable design strategies and renovations.
As an investor you can cash in on the coming demand for energy efficient properties through a green rehab. The rapid wealth and economic development is driving huge growth in energy consumption and green house gas emissions, which in turn is changing the perception of lenders, developers, investors and just about all trends in the construction industry.
According to an article, "Globalization and Global Trends In Real Estate Investment", the top markets for green rehab properties are mostly concentrated in North America and European economies, although significant potential for new green construction and retrofits exists at along all parts of the world.
As I've mentioned before, one of the greatest opportunities for green building investment and green rehabs is in the United States as the stock of older inventory becomes obsolete when next to energy efficient homes saving thousands in a given year. Although the U.S. is going to see a surge in this economy, other major players in the green construction and green rehab industry will be the United Kingdom, Germany, and Japan.
So what does all this mean to you, the investor? Investors know and understand risk, as well as how to mitigate risk. One of the larger advantages to green rehabs and green construction is minimizing the risk of owning obsolete properties in the future, along with a much higher ROI for longer term strategies.
If you're not convinced that green rehabs are going to become a major contender in the real estate investing marketplace then consider the following three influencing factors which are being seen in the marketplace today and will continue to gain more traction as time progresses.
1. The Market - There is a rising interest and application for green standards in hundreds of municipalities. Through forcing new and existing building standards to a higher level, non compliant buildings will certainly depreciate relative to the new mix of green real estate.
2. Regulatory incentives and forces - We have just begun to see the influence the government has and will continue to have in the rising of renewable energy sources, tax benefits and manufacturer incentives for energy efficient measures to new and existing homes. As investors become more educated around the benefits of green investing we will see more competition begin to emerge, which is why this is your time to gain the competitive edge and become a major player in the energy efficient market place.
3. Finally, environmental concerns play a factor, although, as investors we all know this can be one of the most overlooked aspects of our profession. Sure, we all want to save the environment and produce a future for our children's children, a green and vibrant built environment, but it comes down to business. The good news is, dollar for dollar, green real estate investing and green rehabs come out on top for the right property and investment strategy.
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