If you’re thinking about investing in property, then you’ll want to think about the value of the investment over the years, or even decades. Residential property can form a valuable part of a diversified investment portfolio, but getting the best from it means bearing a few points in mind. These relate to the regulatory pressure on the market, and to the wants and needs of future buyers.
Competitive Differentiation
The homes that are likely to retain their value are those that stand apart from the rest of the market. This might mean offering features that aren’t to be found elsewhere, and being aware of the standards that buyers might expect from you.
Specifically, homes that impose a minimal burden on the natural world are likely to be preferred by buyers. This is reflected in the higher prices paid for these homes. As such, it’s worth investing in new-build homes that already meet sustainability criteria, or upgrading older homes with solar panels, insulation, and smart home tech.
Lower Operating Costs Mean Higher Buyer Appeal
Buyers aren’t just motivated by ethical concerns about the state of the natural world. They also want homes that will be cost-effective over the long term. This is a key selling point for well-insulated homes, which have been upgraded with the latest appliances. These homes will demand less maintenance, and will cost less to heat, in the long term.
Future-Proofing Against Regulation
It’s worth remembering that regulation isn’t a static thing. Rather, it is likely to change over time. In practice, this means more stringent constraints on the home and what it can be used for. The right sustainably constructed new-build homes in the Midlands are more likely to stay on the right side of regulations that are introduced in the future, which can lower the cost of retrofits later on. This can make the property a more attractive proposition, not just now, but in years to come.
Enhanced Brand Value & Partnerships
When an organisation has invested heavily in sustainable developments, it will influence the way it is perceived. This is often reflected in the ESG scores accrued by that organisation. Maintaining a good reputation can encourage investment from green-conscious funds and individual buyers, including councils.
Long-Term Asset Value
Property stands not just for years, but for decades and even centuries. It’s therefore essential to think about how yours might perform in the future. Older, inefficient homes might require upgrades, as we’ve mentioned. But they might hold an enduring appeal for buyers of a certain kind. In order to maintain a diverse portfolio, and to thereby drive down risk, you might lay out your goals and criteria in advance, and pick your properties accordingly.