When it comes to investing in real estate it can be quite overwhelming for beginners. As with any investment strategies, it really helps if you understand the basics and general strategies before you invest in real estate. It’s commonplace for beginners to quickly go over their budget in a home renovation project. This includes green real estate investments.
The overall idea with any real estate investing is to increase your profits while limiting your expenses. When it comes to make eco-friendly enhancements this can be done easily with overall energy efficiencies inside the house. By creating a higher performance house with fewer costs for energy use you are going to be more successful in your green renovation project. This strategy will help if you are buying and holding property or planning to flip houses.
There are many things to consider before you simply start replacing everything in the house with energy efficient appliances and materials. You should look at the neighborhood the house is in. If the houses were all built around the same time and the windows are less efficient you will most likely need to replace the windows on your investment property with energy efficient windows. This is simply to make it more comparable to the other homes in the local area. Typically older homes will be far less efficient than newer homes.
Here are a few inexpensive upgrades to help you with ideas:
- Replace an outdated thermostat with a programmable thermostat.
- Add a hot water heater blanket to save the money it would cost to replace your hot water heater with an on demand, or tankless, water heater.
- Replace showerheads with low flower showerheads.
- Add aerators to sink faucets to reduce water flow.
This is why people hoping to make eco-friendly house renovations should plan first. It’s the best route to take when trying to save on your budget. Planning and staying organized during your rehabilitation of a real estate investment property will give you the opportunity to shop around for the best prices.
With “green” being the latest trend in society it’s becoming easier to find eco-friendly construction supplies and appliances at several larger retail stores. Don’t be surprised if you are able to shop at some of the local big box stores in your neighborhood. Even though it might be listed at a great price you should still shop around. You might find a lower price or be able to have a store price match something. To save even more you can search for coupons online.
These are some of the basics involved in green real estate investing that you need to be aware of before beginning your renovation projects. Do your research and remember to shop around for the best price. Stay organized and plan ahead. Doing this simple things will put you ahead of many beginners.