ESG – what property owners need to know
ESG encompasses sustainable, social, and corporate criteria. However, these do not only apply to real estate companies, project developers, and investors. It can also be worthwhile for homeowners who live in their own property to take some ESG criteria into account. After all, a sustainable property is often also an economical property. Social and ethical aspects, on the other hand, tend to play a greater role when renting to commercial tenants.
Sustainable construction and legal obligation to retrofit
Resources such as oil and gas are not only finite, they are also becoming increasingly expensive. Sooner or later, sustainable new construction and energy-efficient renovation will become increasingly important. Buyers of old existing properties are already obliged by the Building Energy Act (GEG) to renovate and modernize them to make them energy efficient.
It makes sense to seek advice from energy, real estate, and financing experts on what is technically and financially feasible and sensible. A local quality broker can help you find the right experts. They can also assess how individual measures will affect the value of your property.
Subsidies for sustainable renovations
Subsidies for energy-efficient renovations can be applied for from the BAFA or KfW. The lower the energy consumption of the property after renovation, the higher the subsidy. It is important to apply for subsidies before you hire the tradespeople. In addition, very low-interest loans can be taken out from KfW Bank and state repayment subsidies can be granted.
Think entrepreneurially as a homeowner
Governance, i.e. corporate management, generally tends to be more relevant to real estate entrepreneurs, project developers, and investors. However, entrepreneurial thinking can also be helpful for homeowners when planning to sell their property. For example, transparent communication with the potential buyer is important.
Deliberately concealing defects can have legal consequences later on. On the contrary, being open about defects can be used to justify the asking price and counteract attempts by prospective buyers to negotiate the price down. With the right strategy, you can achieve a market-driven sale price.
Would you like to know how climate-neutral renovation will affect the value of your property? Contact us! We will be happy to advise you.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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