Going Green - the sustainable investment property thread

yeap. We in hindsight wish we didn't install gas central heating in our ppor. Should have just gone with with reverse cycle units in each room using standard units. If we ever build it will be all electrical, with lots of solar panels and 100% greenpower (passive house design, reverse thermal mass design (earth bricks preferably) etc).

 

Thanks @Peter_Tersteeg . That’s a shame, albeit not surprising (I had never heard of lenders offering this). On one hand it isn’t surprising, given bank’s general conservative nature and unwillingness to fund for innovative development types. On the other hand it makes perfect sense that servicing calcs should preference housing with significantly reduced running costs.

 

@theperthurbanist - thanks for the link to the fifth estate - some interesting reading albeit slightly slanted to the UK publication and experience. A few of the issues raised highlight the difference between the UK and Oz but also the similarities.

The UK being way ahead with regards to thermal properties of windows (eg use of triple glazing, concerns about noise penetration, light benefits of large windows) but behind when it comes to open plan.

Sustainability raises its head but I feel it's a compromise to lifestyle and comfort - nothing new

I went down to linky and this is more critical, artichokes, builders & sub-contractors don't have free access to the Australian Standards which are referenced in the BCA.

If designers can't access the standards, they're not going to use engineered solutions but continue to go down the path of 'deemed to satisfy' whether or not it's appropriate. This rules out much of the innovation which may be incorporated.

Since the BCA was made freely available, usage increased dramatically however not having access to the standards affects how structures are built.

 

@theperthurbanist CBA are currently offering $500 for solar panels which is pretty good.

 

Open plan is terrible for energy efficiency!
So maybe they're actually ahead on that as well?

 

Open plan living is fine provided that you have the ability to close off areas ie utilise compartmentisation to make smaller thermally controlled areas. Rooms which don't require conditioned air, can be closed off.

 

Good to know @Jess Peletier ! Is that a $500 increase to the end valuations/max equity they will lend, or a $500 ‘rebate’?

 

A rebate - but it's finishing shortly.

 

Developer pioneers new solar plan - Business News

TBH I’m not sure how this differs from individual households taking up power purchase agreements with electricity providers (which is something I thought a number of companies were already providing in Aus). Yolk Property do some good stuff in the sustainability space though so I’m interested to find out more.

 

FYI, for those in Vic:
Get a home energy assessment
https://www.victorianenergysaver.vic.gov.au/save-energy-and-money/get-a-home-energy-assessment

 

This looks to be a pretty good resource for those after a general overview of sustainable residential design. Sort of like a condensed and 'simpler' version of YourHome (which I also highly recommend):

Guide to low carbon residential buildings: new build - CRC for Low Carbon Living

See also:
Guide to low carbon residential buildings: retrofit - CRC for Low Carbon Living

Guide to Low Carbon Households - CRC for Low Carbon Living

 

Not a bad article covering a range of solar options for tenants/landlords:
Raising the roof: Solar for renters and apartment dwellers - Renew Magazine

 

CEFC launches first green home loan with Bank Australia Clean Energy Home Loan

CEFC launches first green home loan with Bank Australia Clean Energy Home Loan - Clean Energy Finance Corporation (CEFC)

...The new Bank Australia Clean Energy Home Loan, offering eligible borrowers a 0.4 per cent discount on their home finance, will be the first Australian green home loan to use energy efficiency measurement tools to determine eligibility.

The discounted rate will apply for up to five years for customers who buy or build homes which achieve a minimum of 7-stars under the Nationwide House Energy Rating Scheme (NatHERS), which rates the energy efficiency of a home based on its design....

 

Great initiative, hopefully more banks pick it up. My question is: is a loan from Bank Australia with a 0.4% discount more competitive than the best competitors rate on the market (I know I get a ~0.5% discount from my bank for having a certain value of loans with them)?

What are your thoughts @Jess Peletier and others?

 

2.85% is pretty competitive!
TMBANK is 2.8% though, so yes, it's possible to get a better deal.

 

I don't have Bank Aust on my panel so not sure what the end rate will be. CBA recently gave a $600 rebate for solar panels which was kinda cool - a few clients were please about that!

 

A couple of articles worth reading:

Wodonga builder proves 10 star homes not so hard if you’re a quality builder to start with

Embodied carbon gets its own star rating tool – now for the revolution

 

Anybody have thoughts on sustainable/green apartment developments as investments? Ala The Commons in Brunswick, Nightingale etc. Had a quick search but couldn't see much about it on the forum.

The restrictive sales covenant on the Nightingale blocks makes me think they are somewhat less useful as an investment given your resale price in the future is somewhat limited, but given an apartment sold prior to auction and for significantly more than the expected range, it obviously connects with some. As I understand it, the ballots for all of the Nightingale projects are also heavily subscribed with a lot of people missing out.

Anybody lived in one? Do you think the lack of car spaces is an issue? Communal laundry seems fine. Upstairs veggie gardens a plus. I feel like the lack of parking is fine in a place like Melbourne, but in more car dependent cities it might be more of an issue. I guess it helps to self-select the population of the building.

 

Firstly, can I say I love the concept of the Nightingale, Bagruppen, etc development models from the perspective of living in one as well as their role as a sustainable development model and as a piece of architecture. However, if I recall correctly part of their social mandate to keep costs affordable is a cap on sales price growth = you will never outperform the market. So not a great investment if your are looking for high growth.

Seperate from that however are your more ‘everyday’ sustainable apartment projects, which I believe will perform strongly in the future as tenants and owner occupiers increasingly look to reduce running costs and demand comfier, healthier homes.

 

Psaros we’re doing some quality, sustainable apartments in Perth (before the manager retired and closed the company) that there was strong demand for. Apparently the ESD features played a strong part in their initial sales:
Sustainability Sells - The Real Deal