select
|

Carbon Tax System - will it influence the property market?

The combined energy crisis and looming carbon tax system, might influence the way property investors build on their property portfolios.

A recent study conducted by Investment Property Databank (IPD) and the Green Building Council of South Africa (GBCSA) concluded that energy efficient (EE) buildings deliver better financial returns than non-EE buildings. The proposed 2016 carbon tax system also falls in line with the assessment as EE becomes an important investment decision for property and business owners.

During the study 461 commercial buildings were investigated and found that the top quartile EE properties delivered a 15.9% total return. That is a 170 basis points higher than the remainder of the buildings, which delivered a total return of 14.2%.

In existing buildings, changes to how the property is managed might increase the EE margin of the property. The three main components which will make a building more energy efficient are lighting, climate control, and operational equipment such as IT and data processing. These are small changes but over time it will not only increase the building’s EE but also have a positive impact on the owner and business’ bottom line.

The longer an owner waits to implement these changes, the greater the risks of potential financial losses becomes and with the looming carbon tax system it becomes even greater.
Therefore buildings with an holistic EE strategy in place are going to become more attractive to property investors in the long run.

Going green will no longer just be good for the environment but will also be good for your property portfolio.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK