Promoted by loans.com.au
It’s becoming more important than ever for investors to consider how they can future-proof their investment properties, whether it’s the ability to charge electric vehicles or reducing the rising cost of living.
Going green for your investment property can benefit investors and tenants alike. Here are some benefits of investing in sustainable housing.
More energy efficient
One of the most obvious benefits of eco-friendly homes is that they are more energy-efficient than regular homes. Homes that have been built with passive heating and cooling in mind, or using recycled and sustainable building materials that convert and store energy allow tenants to reduce their consumption of non-renewable energy sources that contribute to greenhouse gases.
Reduced energy bills
A side effect of energy efficiency is reduced energy bills, which is a massive win for tenants. Environmentally friendly additions like solar panels may not necessarily boost the value of your investment property, but they can hold huge appeal for tenants when it comes to the significant savings they can make on their monthly utility bills - especially as the cost of living continues to rise.
Attract and retain good tenants
These days, more and more tenants are looking for energy-efficient homes that have features like solar panels and electric vehicle charging. Investors who want to attract and retain good tenants should start thinking about how to future-proof their investment properties - whether it's the ability to charge an electric vehicle or switching to renewable sources of energy like solar panels on the roof. The next generation of renters will be more demanding of sustainable housing options, so it’s something investors should keep in mind.
You can access competitive rates from lenders
There are some lenders who reward borrowers for choosing to build or buy a more environmentally friendly energy-efficient home.
Our Green Investor Loan is like our regular variable rate investor home loan, but better for you and the environment. In simple terms, you'll benefit from a discount on your home loan if the home you purchase was built less than 12 months ago and if it complies with a certain environmental standard based on the Nationwide House Energy Rating Scheme (NatHERS).
NatHERS is a star rating system (out of ten) that rates the energy efficiency of a home, based on its design. Star ratings are based on information about the home’s design, construction materials, and the climate where it has been built.
To qualify for the discounted loan, your investment property must be less than 12 months old and you must get a NatHERS certificate from an accredited assessor, showing a 7.0-star rating or higher.
With a highly competitive interest rate of 2.89% p.a. (3.31% p.a. comparison rate), the savings you get on your home loan by choosing to go green could easily cover any costs of opting for an environmentally friendly home.
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Marie Mortimer is Managing Director of loans.com.au, one of Australia's largest online lenders. Since Marie started the business in 2011, Marie has grown loans.com.au into a company with $6 billion worth of home and car loans. Marie is dedicated to improving financial literacy for all Australians and is passionate about the FinTech industry in Australia. When she isn't at work, she loves to spend time with her husband and two young children.
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