An eco-friendly investment property can produce significant financial rewards. There are ways to improve your investment’s green credentials while boosting the rent and minimising your tax burden through cost write-offs and depreciation benefits.
We have reached a point where the public values eco-friendly moves designed to help address climate action. At the last federal election, Aussie voters expressed their support for climate change action.
Being environmentally friendly can be financially beneficial to property investors. Energy saving measures in investment properties result in more tenant appeal — so, higher rents — lower running costs, depreciation benefits and a cleaner planet.
Some changes that property investors can make that could both help the planet and their bank account include:
- Heating and cooling – Insulation to roof and wall cavities is a good start and can be claimed as a capital works deduction. A ceiling fan also helps too, and if it costs less than $301, the outlay is fully depreciable. Then there’s window film which can keep out the heat in summer and is a capital works deduction.
- Power generation – solar power systems and battery storage. Whilst not cheap, going solar allows you to depreciate its cost per year.
- Water collection – Utilising rainwater tanks for gardens, toilets & washing machines, can keep the possibility of tenants having to pay excess water charges to a minimum. Which can then possibly result in a rent rise.
- Accommodating future cars – There is no doubt the future will be full of electric cars, so investors should consider fitting garages with a car charger.
- Sensible landscaping – Mulching and native plants can be cost-efficient and environmentally sensible, as native plants are low-maintenance plants that don’t consume much water.
Like always the mortgage team at Inspired Money are ready to assist you with all of your mortgage queries. Get in touch today.
This article was written by Darrel Roberts, Head of Mortgage Lending Services at Inspired Money with over 30 years of experience in mortgage lending and accounting he is an expert in his field.