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News
Author: Linda McNamara, Housing Industry Association Limited
Date: August 12, 2007
www.hia.com.au
2007 HIA REAL ESTATE PLUS HOUSING / KITCHEN & BATHROOM AWARDS MACKAY
HIA Showcases the Industry’s Best in the Business
over 200 HIA Members, Sponsors and Partners caught the winning spirit at the 2007 HIA Real Estate Plus Housing / Kitchen & Bathroom Awards held at the Windmill Function Centre on Saturday 11th August, 2007.
For many years the annual HIA Housing / Kitchen & Bathroom Awards have been unchallenged as the premier event on the North Queensland construction industry calendar. The HIA awards attract, promote and recognise the very best that our builders, cabinetmakers, building material manufacturers, designers and industry professionals have to offer. The Awards have become the benchmark for excellence in design, construction and renovation throughout North Queensland. HIA Area Services Representative for Mackay, Patricia Anne stated that the Homes, Kitchens and Bathrooms entered in the 2007 HIA Real Estate Plus Housing / Kitchen & Bathroom Awards Mackay were outstanding with Total Kitchen Design being awarded the 2007 HIA Kitchen Project of the Year and Endibrook Pty Ltd being awarded the 2007 HIA Mackay Home of the Year. The overall winners of each category will now progress to the North Queensland Regional Awards to be held in Townsville on Saturday 13th October, 2007
HIA and their sponsors congratulate all entrants and winners of the 2007 HIA Real Estate Plus Housing / Kitchen & Bathroom Mackay Awards. Attached to this Media Release is a complete listing of all award recipients.
Linda McNamara
Senior Events and Promotions Co-Ordinator
HIA North Queensland
Ph: 4755 6605
Fax: 4773 1777
Email: l.mcnamara@hia.com.au
Author: Michaela Ryan, Australian Property Investor magazine
Date: June 21, 2006
www.domain.com.au
You might ‘go green’ because it feels good to look after the planet. Or you might just do it for the money. Yes, property investors can actually make money out of the environment!
Recently I saw a sign that said: “It’s the simple choices we make every day that have the power to transform our world.”
In a time when the world can seem pretty awful, it’s easy to forget how powerful we really are. That’s especially the case for homeowners, property investors and developers. These people make ‘everyday’ decisions about properties – decisions which are highly influential, both individually and collectively.
You’re replacing an old roof – do you add insulation to reduce energy usage? It’s time to renovate the bathroom – do you include a water-efficient showerhead? You want your tenants to look after the garden – do you provide them with a rainwater tank?
There’s definitely a ‘feel-good factor’ when you make decisions like these.
But I know what some of you are thinking … ‘Enough of the lefty, hippy spiel; just tell me how can I make a dollar out of this’.
New market emerging
You might be surprised to hear that ‘green’ is no longer the exclusive domain of lefty, hippy types.
Alan Gordon, who designs eco-friendly homes, says, “You’ve got a fairly large market sector now that’s interested in doing this for philosophical reasons – trying to minimise the effect we have on the environment.”
Twenty years ago people weren’t talking about the environment, but now it’s a pretty mainstream concern.
Sydney-based sustainability consultant Michael Mobbs says, “It’s an ordinary middle-class Australian market. None of my clients are ‘greenies’.
“Developers are coming to me because they’re changing their business. They think that with the price of energy and water and petrol going up, they can sell their houses (developments) and say: ‘It’s cheaper to live there’.
“I did some houses down at Logan (Queensland) and we got energy and water bills less than $300 a year.”
So in addition to ‘saving the planet’, being green is enticing to a tenant or buyer because of the dollar savings.
Property investor and developer Scott Elsom (see case study) recently gave a talk about green housing, and was asked by an audience member how renters could do more to make their homes green.
“I think there’s a whole market there for people who are renting who want to live green,” Elsom says. “But they really can’t unless the landlord takes the initiative. And so I suspect that there’s the possibility of charging a premium in rent for those people because obviously there’s dollar savings, in that you don’t pay for excess water, you don’t pay power bills. That can be a selling point for the landlord, and no-one has really tapped into that yet.”
It’s hard to put a figure on the “premium” a tenant would be willing to pay for an energy and water-efficient property. The calculation would need to take into account the energy and water savings of the individual property.
Some research conducted by the Rural Industries Research and Development Corporation late last year suggested that 18 per cent of consumers would be prepared to pay a 10 per cent premium for meat produced with concern for the environment. Of course, meat and property are like chalk and cheese but the research indicates a small but significant number of people are willing to pay more for green products – but not too much more.
This is a growing market. But you’d probably still call it a ‘niche’. Demand for green developments and rental properties will be greater in some locations than others. So market research is paramount for a green investor.
Window of opportunity
There’s probably only a limited time in which an investor or developer can take advantage of this phenomenon. Before you know it, the authorities will have all sorts of mandatory environmental standards for property owners.
Already, state governments are requiring the highest energy ratings for all new houses.
Gordon believes economic factors and resource shortages will increasingly put pressure on governments and councils to enforce green measures.
“You can see it with the push for water tanks – with councils offering subsidies and rebates and so on,” he says, “whereas even 10 years ago they would ban you from having a tank in an urban area. You would actually be prosecuted for putting up a water tank because they were concerned about people not looking after them, with bird droppings and mosquitoes … Now we’re suffering such a water shortage that councils – and also individuals – are looking at these things.”
Green ideas
Here are some of the ways property investors and small developers might benefit from going green. Of course there are plenty of other things you can do – as a quick internet search will show you. Here we’re just talking about the most cost-effective options.
Gardens
“If you think about your landscaping and get advice from someone who has a clue, you can design the garden with plants that are going to last through the driest droughts and still look good,” Elsom says.
“If the garden looks good you’re halfway there as far as getting tenants and with valuations as well.”
With carefully selected hardy plants, you reduce the amount of water consumption on the property. (Remember that in some parts of Australia high water usage can increase your council rates). You also reduce the maintenance – which is great from the tenant’s perspective.
Lomandra grass is one example Elsom gives of a relatively drought-proof plant that looks lush.
“The best rule of thumb is the plants that the council plants on the side of the road. They’re really good because they’re low maintenance and they don’t need much water,” he says.
Water-saving devices
Have a look at the itemised section of your council rates or water rates notice(s) to get an idea of how much you are paying for water.
Then consider how easy it is to opt for water-efficient showerheads, dishwashers, washing machines and dual-flush toilets.
“If you’ve got an old house, as the toilet breaks down, to put in a low-flush system will cost you no extra, so you’re crazy not to do it,” Elsom says.
Mobbs points out, “If you’ve got a triple A-rated showerhead your energy and water bills will probably be 20 per cent less.” (Mobbs’ estimation is based on electric hot water systems).
Rainwater tanks
Elsom points out that the problem with rainwater tanks is that you generally aren’t eligible for council rebates unless the property is your principal place of residence. And at upwards of $700 a pop (without rebates), that makes it an expensive decision.
“Still I think it’s a worthwhile thing to be putting into houses, especially with water rates – I think they’re going to become one of the ‘bad taxes’. In the past it was alcohol and tobacco and in the future I suspect it’s going to be things like water, electricity and petrol. It’s probably a really smart move for any long-term thinking investor to look at rainwater tanks.”
Mobbs argues, “A lot of tenants feel disempowered and they don’t want to put money into the house. But a lot of them do garden. And if they’ve got rainwater they either use it for drinking or the garden, and they’re more likely to look after the place.”
Investor Monique Bond has implemented a number of green options in her properties. She’s frustrated that rebates aren’t available for landlords wanting to install water tanks. However, she wonders if it might be possible for tenants to apply for the rebate. And then the landlord could come to some arrangement so that the tenants wouldn’t need to be out of pocket for the cost of the tank.
Energy-saving devices
Elsom admits there’s no great incentive for landlords to put in low-energy light globes and appliances, since they aren’t the ones paying the power bills.
The only arguments in favour are:
- it often doesn’t cost any more to choose an energy-efficient product; and
- if you want to market your property to ‘green-minded’ tenants, energy-efficient products are a must.
(For more information about energy-saving appliances, go to www.energyrating.gov.au).
Solar power
Elsom is now in the business of manufacturing green kit homes.
“We include PV (photovoltaic) panels on our houses,” he says. “Normally from a cost point of view you wouldn’t put them on an existing house. To put PVs on an existing house you’d be looking at anywhere from 12 to 20 panels.”
However, Elsom suggests that investors who are building a new house should definitely consider the viability of solar panels.
He is marketing three-bedroom homes that only require six solar panels because of the way they’re designed. With a smaller number of panels, it becomes cost-effective.
“That’s when I think you’ve got a real selling point for tenants. You can say, ‘you’re not going to have any power bills’. For a pensioner, that $30 or $40 a month is a big saving,” Elsom says.
Grid connect
Getting set up for solar power not only involves panels but quite a bit of other equipment. However, if you’re already connected to the local power supply, there’s another option. You can set up a series of solar panels – and nothing else – and actually feed energy back into the power supply.
Gordon (designer of eco-friendly homes) explains that the power company sets you up with what he calls a ‘two-way switchboard’.
“Instead of having a meter that measures power in, it measures power in and power out. If you’re away for a few days for example, or you don’t use any equipment, you’ll be putting energy back into the grid. And you might end up with a surplus at the end of the month and (the energy company) will then send you a cheque.
“In the meantime if you’re relying 90 per cent on the energy from your solar panels and just buying 10 per cent from the grid, your electricity bill will be $5 for the month instead of $65.
“Panels are around $1200 each,” Gordon says. “If you wanted to buy 20, that’s $24,000 and you’d probably get about a quarter of that back (on rebate/subsidy). The panels last for 25 years so it’s not a bad proposition.”
Of course, the availability of such subsidies, as well as their conditions, varies depending on your location.
Orientation
Elsom says, “The orientation of the house has a huge impact on the amount of energy it consumes and how comfortable it is to live in.
“The internet is full of guidelines on orientating houses. So when building a house, spending a couple of hours deciding which is the best way to orientate it will have a big impact on your tenant’s comfort, and the tenant’s cost of living, and ultimately the environment.”
Sewerage treatment plants
“If you’re doing a subdivision, your headworks charge from the council is fairly huge,” Elsom says. “You’ve got to pay council a fee for sewerage, storm water and parks and gardens. And down at (our development) ‘The Green’, it was $400,000.
“But because we weren’t connected to the sewer – we had our own sewerage treatment plant – and our storm water was being retained on site and not going into the council’s storm-water system, we were able to get all of that waived.
“So there’s a huge cost benefit there for a developer-type investor.”
Elsom points out that this sort of waiver isn’t a given; it needs to be negotiated with council.
“The (environmental) advantage of having sewerage treatment plants on site is that you don’t concentrate all the waste in the one spot. So in Brisbane you don’t concentrate it all in Moreton Bay.”
The treated sewerage at ‘The Green’ is used for irrigation.
“It’s treated to a level where the amount of bacteria and viruses is virtually nil, and then it’s dispersed on your land as irrigation. Generally sewerage is really high in nitrogen, which is great for plants.
“That’s the other advantage of treating your own sewer – you get around that water problem because you’ve got an unlimited supply of water.”
Small developers
Small developers can definitely use the environment to their advantage. Mobbs says councils are more likely to approve projects if they are sustainable.
“If the land is fragile or sensitive, making a project so it’s got sustainable housing can actually help get an approval – either quicker, or otherwise where they mightn’t get one,” he says.
“Most of the easily developed land has already been developed in Australia. So what that means is more and more developers are having to develop on more fragile land.”
Retrofitting
There are plenty of cost-effective green options for those who are building a new property or development. But there’s a bit of debate about the cost-effectiveness of retrofitting an older property to make it greener.
It’s easy to put in a new showerhead. But changing the glazing on windows and putting in insulation can be an expensive business.
Simon Tennent from the Housing Industry Association says, “Anecdotally it’s not something that the average consumer has embraced. Because of the high upfront cost of retrofitting it does take a long time to recoup that money through any perceived savings that you would get.
“I don’t think you could justify charging more rent for these sorts of things.”
Elsom would disagree. He’s planning to retrofit properties in areas with a high proportion of “green-minded” tenants.
“The ‘Queenslander’ house can so easily be retrofitted and made greener,” Elsom argues. “It’s up off the ground so you can get to all the plumbing underneath. You can put sewerage treatment plants underneath. You can put rainwater tanks underneath.
“And in Brisbane, in the older suburbs, a lot of the old Queenslanders have still got septic tanks. Why can’t they be used as rainwater tanks and used to water the garden? Our house has got one and it’s a 5000-litre tank that’s been sitting under the ground for 40 years. It’s an untapped resource that anyone can use.”
New investors
“I suspect ‘green investing’ is more appealing to people that are perhaps a little bit older and have a little bit more cash behind them,” Elsom says.
“When you’re starting off (as an investor), the return that you get is so important that: one, you’re not going to take the risk because it might not work; and two, you’re not going to want any added expense.”
Elsom’s argument is supported by Monique’s investment experience. She and her husband Graham are retirees in their 60s and they’ve been motivated to ‘go green’ purely for altruistic reasons.
They’ve used solar water heating and heat pumps in three investment properties. The properties are let out as share accommodation, so Monique and Graham are responsible for the power bills under this arrangement. Even though their power bills have been reduced, the savings have not offset the cost of installing the environmentally friendly measures. Just as well, then, that they were motivated by the idea of helping the planet, and not their financial return.
Getting good help
If you’re planning a green development, Elsom says, “get good advice from someone who’s done it, rather than your builder and plumber and town planner and architect that you would normally use”.
“Most of them don’t get it,” he says. “You’ll probably find that those that have done it before are more than willing to tell you about their experience and help you out because they’re passionate about it.”
Monique believes builders are much more cluey now than in the past. Just five years ago, they couldn’t understand why she wanted to use green products. The thinking back then was: if it costs more, why would you bother?
Tennent says builders are now being educated about these issues. For a ‘Green Smart’-accredited builder he suggests a visit to www.greensmart.com.au
The bottom line
As we run into energy and water shortages in the coming years, everyone will be required to ‘get with the program’. Until then, there’s a window of opportunity in which you can use the environment as a marketing tool for your property.
And regardless of how you’re marketing your property, there are lots of simple, green ways to make your property more comfortable and cheaper to run – both factors that are capable of enticing tenants to stay longer.
“For me it’s a feel-good factor,” says Elsom. “I know I’m not screwing my tenants. I’m not screwing the environment. Everyone’s benefiting from it for no real effort.
“You’re never going to do it just for a dollar. But in saying that, it is possible to make a dollar out of it.”
"The (environmental) advantage of having sewerage treatment plants on site is that you don't concentrate all the waste in the one spot. So in Brisbane you don't concentrate it all in Moreton Bay."