Eco Homes Cornwall leads the way
The average fuel bill has risen to £1250 per year for gas and electric for the average home. This is a rise of 4.7% on last year. As the housing market begins to stabilise, there is clearly an opportunity here for the wise investor. Eco-homes have been around for a few years now. Government sponsored ‘eco villages’ have made the news for a number of reasons, and there are small developments of eco-homes throughout the UK.
Initially considered a luxury for the wealthy with an environmentally leaning, these homes often feature cutting edge design and innovation- which lead to significantly reduced fuel bills. With double or triple glazed energy-efficient glass, ground source heat pumps and water recycling systems built in, these homes are practical for the long term.Despite being created to such a high standard, eco homes are only marginally more expensive than their fuel-hungry counterparts – making them affordable for the majority of house hunters.
Long Term Benefits
Buying a house is one of the biggest financial commitments you are ever likely to make. The process of home buying is expensive, and there will still be the decorating and everyday fuel bills to take care of once you have become a homeowner.
With a standard home, you pay your mortgage and eventually become the outright owner – and the final value of the house will depend on the current market. If it is less then you will probably stay there longer, if it is more you may decide to move and take advantage of this profit.
An eco-home is different. Although you pay your mortgage each month as usual, the fuel bills you will be paying will be considerably less – perhaps just 20% of the average for the size of your property. Assuming that fuel prices continue to rise at 4% per year, and that you manage to save 75% off the average fuel bill this means that by the end of a 30 year mortgage term you will have already saved over £50,000 in gas and electric bills alone.
Many eco-homes will also recycle rainwater, offering you additional savings on your water bill.
Pays for itself
After 63 years, you would have saved over £250,000, and over £350000 by 71 years. As you can see, it may not pay for itself in your lifetime, but you would save a considerable amount of money along the way to enjoy a better quality of life.
Green with envy
These homes are already affordable for many, however as the cost of living is significantly reduced for occupants of these eco homes, it may not be long before eco-homes are entitled to a new kind of mortgage package.
As mortgages are currently calculated on what individuals can afford to repay, based on some standard averages for living costs, it seems unfair to apply the same costs to someone purchasing an eco home.
With the increased disposable income available to those living in an eco home, perhaps they should be considered capable of higher repayments (thus paying off their mortgage sooner and saving on the amount of interest paid) and be considered even if on a lower wage, or with less of a deposit than someone borrowing for a standard property.
Leading the way
Cornwall is home to a range of eco homes and communities, leading the way in low carbon living. With ‘eco communities’ planned in the clay areas surrounding St Austell, a development of eco homes in Hayle, and several local businesses providing help and advice on eco building, the region is paving the way for greener homes for all.