There are many factors that come into play when you are deciding if upgrading to a more energy efficient space is the best for you.
Will it really be worth it? Will it be another thing that I need to add to my budget? How are these products going to make my home better?
Money seems to be the biggest factor when deciding if energy efficiency products are right for your home, but there are other things that need to be taken into account such as time, comfort, convenience, etc.
All of these components help us make a purchase decision. But, often times, out of all of the factors, money seems to have the most power in the decision.
We often ask ourselves, “If I’m going to invest or make a purchase, what is the Return On Investment (ROI)?”
Many of the things we spend our money on have no measurable ROI. Money returning back to us does not always happen and if it does we may not fully understand the process.
But, a good example of an ROI can be found when talking about investment properties. People usually don’t purchase an investment property without calculating the ROI and determining if it will be best for their situation.
For example, If we spend $100,000 cash on a rental property and receive $1,000 per month or $12,000 annually back, we should have 12% ROI as long as we don’t have extra costs such as taxes, maintenance, vacancy, etc.
Another important thing to look at is when we will have the full return of our invested money. In the case above, the $100,000 invested will return back to you in 8 years and 4 months at which time all the income you receive is pure profit.
Another factor in the above scenario is increased or decreased value of your asset. We all know that asset values can fluctuate up and down but we hope they increase and keep increasing.
This increase is also a very important factor when we look at “ROI”. Sometimes we can invest in upgrades to our investment property that will increase the income.
For example, you could add in an extra bedroom or upgrade a kitchen. These types of improvements can increase the value thus adding to the ROI in both ways. Energy efficiency products are a great way to increase the value of your home and in turn, increase your ROI.
ROIs and Energy Efficiency
ROI’s don’t only apply to investment properties. ROIs should also be applied to our own home. Our own home can become an important financial investment.
We are basically renting our own home and usually have a mortgage holder that receives the ROI since they loaned us money to purchase the home.
But we can still receive an ROI while we have a mortgage because our loan payment is not the only money we pay out each month. There are a lot more things we pay for each month besides our mortgage.
We pay for taxes, maintenance, utilities such as power, gas, and water and a seemingly endless list of other things that take money each month.
If you can save money or reduce these monthly expenses are you increasing your ROI? Absolutely!
Especially if you can clearly measure the savings and understand that by saving a percent of your expenses, you are returning money back into your pocket which is the whole purpose of measuring your ROI.
Let’s say you currently pay $150 per month for utilities. Then, you decide to invest in energy efficiency products. By investing in energy efficiency products, you can save 30%! That means you could save $45 per month or $540 annually.
If the expense of installing energy efficiency products in your home costs $10,000 and your return is $540 you would have an 18.52% ROI.
Each time the power company increases their rates your overall savings increases by 30% which increases your ROI over time.
Another important factor is the increase in value or appraised value with the installation of energy efficiency products. Many appraisal companies will increase appraisal value if you can show that you have invested in the Energy Efficiency or Clean Energy of the home.
This rate can be as high as 25 times the annual savings. That equates to $13,5000 in the increased value of your home for a $10,000 investment. That would be equal to a 35% equity Increase or a 135% ROI. That sounds like a great ROI if you ask me!
There are many other factors that we base our decisions on that may be more important to us than ROI.
Even if comfort, safety, or convenience are more important to you than the ROI you will receive on your energy efficiency products from Aces Lyfe, than you will be gladly surprised after your energy efficiency products are installed.
You will be amazed at the comfort level of your home as well as the safety that you feel inside. The cherry on top of the scenario is that you will receive an ROI on the investment you made by installing energy efficiency products in your home.
ACES Lyfe And Your ROI
ACES Lyfe is here to help you invest in your home and get a great ROI. Our energy efficiency products are developed with you in mind.
They are created to help you have a more energy efficient space as well as a more comfortable home for you to enjoy. By investing in ACES Lyfe’s energy products, you can increase the value of your home as well as increase the comfort level.
Fill out a form to receive a free energy evaluation and start seeing an ROI on your investment with ACES Lyfe Energy Efficiency products.