Thermal colanders as an opportunity
Investing in Energy Efficiency: Thermal Strainers as an Opportunity
Energy efficiency has become a crucial issue in the contemporary era, marked by environmental challenges and growing concerns related to climate change. In this quest to reduce our carbon footprint and promote sustainable lifestyles, investing in energy strainers is emerging as a strategy that is both financially sound and environmentally beneficial.
In our last article, DECORDIER immobilier gave you the strategies to invest without contribution, today we explain you why investing in an energy sieve is an opportunity to be seized.
What is a thermal strainer?
The term "thermal sieve" refers to a building characterized by poor thermal insulation (walls, attics, windows), which leads to significant energy losses. These buildings are often synonymous with high energy bills and limited comfort for their occupants. Thermal strainers are usually found in older homes, apartments, or buildings that haven't had insulation updates or modern energy-saving technologies. These dwellings therefore consume a significant amount of energy and produce greenhouse gases (GHG).
These energy-intensive homes require energy renovation work to be rented out, in accordance with the Climate Law, which aims to offer decent housing for rent and to make the housing stock more environmentally friendly. It is in this perspective that the French government has banned the rental of energy strainers (housing classified G+: greater than 450 Kwh/m²) since January 1, 2023.
In January 2025, housing classified G will also be affected, followed in January 2028 by housing classified F and finally housing classified E in January 2034.
The owners are now obliged to carry out energy renovation work in order to continue to rent them. Unable to carry out this work, some owners find an alternative by offering their property for sale.
Investing in thermal colanders: A double benefit
Investing in the renovation of energy strainers offers a double advantage: on the one hand, it helps to reduce energy consumption and, consequently, greenhouse gas emissions. On the other hand, it can turn out to be a lucrative opportunity for investors.
Owners of individual properties can sell their energy-intensive property as it is, having the only obligation to provide an energy audit for F and G classified properties by involving a certified expert to carry out an DPE (Energy Performance Diagnosis), and this since April 1, 2023. Find our article on the energy audit HERE.
It should also be noted that a new method of calculating DPE has been in force since July 1, 2021, which has resulted in an increase in the number of dwellings affected by the Climate law, thermal sieves therefore offer more choice of housing and better prospects. You can find our article on what's new in DPE HERE.
These energy renovation works are all the more important as the energy efficiency of a property will have a direct impact on its long-term value and on its rental performance. Which does not fail to interest seasoned investors.
There is no doubt that many properties will be put on the market by owners who do not wish to bring them up to standard, there are so many opportunities to find.
Governments and regulators in many countries are increasingly aware of the importance of energy efficiency. Many countries have put in place financial incentives and subsidies to encourage the renovation of energy-inefficient buildings. By investing in retrofitting these thermal strainers, homeowners can not only benefit from a significant reduction in their energy bills, but also access government programs that financially support such initiatives.
A significant positive point is to take advantage of the opportunity to finance this work with a zero-rate eco-loan. Other aid such as the “Prime Rénov “also makes it possible to carry out more substantial work. In summary, with a sound financial plan and tax advantages, energy strainers offer the possibility of a real estate rent, and a significant added value over time.
The Financial Benefits of Investing in Energy Strainers
1. Long-term cost reduction: One of the most obvious benefits of investing in energy strainers is long-term cost reduction. Improvements in insulation, heating and cooling systems, and windows, for example, reduce energy consumption, which translates into lower energy bills.
2. Real estate added value: Buildings renovated with thermal sieves gain in real estate value. Potential buyers are increasingly attracted to energy-efficient properties because they offer long-term savings and increased comfort. This can potentially translate into a significant capital gain when reselling the property.
It should be noted that a quality property is rented more expensively and much more easily and thus saves the risk of rental vacancy.
3. Grants and Financial Incentives: Governments and local authorities often offer grants and financial incentives to encourage homeowners to retrofit their thermal strainers. These incentives can considerably reduce the initial costs of the renovation, thus making the investment even more attractive.
4. Profitability and attractive returns: Due to the increase in demand for energy-efficient buildings, renovated properties can generate attractive returns for investors. The energy savings from these retrofits can help pay for the initial investment over time.
Considerations to take into account
However, investing in energy strainers requires careful planning and a thorough understanding of the potential costs and benefits.
Energy sieves will certainly lead to sales, but they can also scare first-time buyers as well as novice investors. You have to see difficulties as opportunities and think like an investor.
Here are some points to consider:
1. Initial Costs: Initial renovation costs can be high. Investors should carefully weigh these costs against the projected energy savings and available financial incentives. These investments must be included in the cost price and in the calculation of the return, taking into account all the aid available.
2. Research and expertise: An in-depth analysis of energy-efficient renovation technologies and methods is essential. Working with industry professionals can ensure optimal results.
3. Long-term profitability: The financial benefits of energy-efficient retrofits can materialize over the long term. However, investors often have to be patient to realize the expected returns.
In conclusion, investing in energy strainers is a viable investment strategy both financially and environmentally. By retrofitting these energy inefficient buildings, investors can not only achieve substantial energy savings, but also benefit from financial benefits such as subsidies, incentives and attractive returns. As climate change concerns continue to escalate, betting on energy efficiency could prove to be a winning move for forward-looking investors. If you want to get a good deal and buy at a discount, properties classified F or G can be a real opportunity. However, careful planning and appropriate expertise are key to maximizing the benefits of this dual impact investment. If the project is profitable taking into account all these elements, then this thermal colander is a good deal!
The DECORDIER Immobilier Thonon and Evian agencies are looking for this type of property; you are owners and do not want to get into the standardization work?! Contact us quickly, we have the investor you need!
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
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