Studies show that nearly half of first-time buyers have backed out of transactions at some point due to environmental reasons. According to a survey of over 1,000 buyers conducted by First Mortgage, 48% of first-time buyers have backed out of a property purchase due to one or a combination of environmental issues. Flood risk was noted by 56 per cent of respondents, followed by contaminated ground by 52 per cent. Then there was the threat or existence of radon gas, as well as subsidence, natural hazards, neighbouring mining activities, pollution levels and noise pollution, water quality, nearby industrial activity, and parking congestion.
Experts say, if a buyer believes their potential property may be at risk of environmental factors such as flooding, erosion, or being more vulnerable to extreme weather, they should look to get a specialist surveyor in to make sure the property is properly built for this and if they need any specialist insurance. This can easily be arranged by your local estate agent. If you are buying a property in Sittingbourne, contact estate agents in Sittingbourne to hire a specialist surveyor to study the property you are interested in.
It is undisputed that climate change is occurring, and it is having an influence on the health of our homes and the potential housing market. Flooding is becoming more of an issue, not just in rural areas near rivers, but increasingly in cities and towns, as we have seen recently in London. Climate change will have an influence on future mortgage applications, and when you consider that subsidence can shave 20% off the value of a home, or approximately £50,000 off the average home price, it can have a significant impact, putting you at risk of negative equity.
Environmental Factors to Think About When Buying Real Estate
- Geographical features
The geography of the area has a considerable influence on its development. Flooding and other issues can arise as a result of poor topography. If you’re going to invest in real estate, you should go for one with a flat topography. Depending on the geography of the place, the regulations will alter. As a result, this is an environmental aspect you cannot afford to overlook.
2. Quality of Air and water
People are becoming more aware of the air and water quality in their surroundings. You may wind up investing in a property that does not appreciate as a result of these circumstances if you overlook this element. Our cities are getting increasingly congested, resulting in poor air and water quality. Both of them are required for proper living. As a result, any issue with air or water quality might keep prices low for a long time.
Clean air zones not only generate strong profits, but they are also in high demand. Water access and quality are also crucial factors that real estate investors take into consideration. These properties do command a premium, but they are well worth it. The benefits of higher returns and better habitation in the area can also be enjoyed.
The climate has a considerable impact on the property’s habitation. If you invest in a home that enjoys beautiful weather all year, you will not only be able to rent it out quickly, but you will also be able to sell it for a higher price. In general, you should choose a location with mild or warmer winters so that it can be inhabited all year. You should also consider the population density. It shouldn’t be too congested, nor should it be too sparsely populated. When the weather is right, you’ll find that the location readily fits all of these requirements. You will not have to put in a lot of effort to come up with such an idea. You must first examine the climate before moving on to the adjacent areas and potential investment opportunities.
4. Long-Term Sustainability
The fourth environmental component, which we are now discussing, has become increasingly important in recent years. When it comes to real estate investing, one of the most important criteria that investors seek is sustainability. The ability of the property to exist without affecting the surrounding wildlife is referred to as sustainability. It refers to a builder’s ability to construct a home without negatively damaging the local ecosystem.
Millennials and other property buyers are emphasising the need of investing only in environmentally friendly properties. When you sell a sustainable property, you will get a higher price. Furthermore, when it comes to sustainable homes, it is simple to obtain a decent appreciation. This is particularly true of residences in semi-urban and rural regions.