My friend and seasoned real estate journalist Pat Curry has written a great blog over at Cyberhomes.com.
She asks the question, “Are homes good investments”? As stated by Curry, homes have no doubt been a solid investment in the past, but due to economic turmoil and a slumping housing market, everyone is questioning the strength of its return power.
As a whole, I do not think homes will be seen as investments in the future. Our parents bought houses as a “home” where they would raise a family and live for a long time. The result was they bought a house, stayed a long time and therefore made a profit when they sold it.
In the past 10years people have been buying homes as an investment thinking they were going to make 400% profit. It was not so much about the “home” but the profit. I think real estate will come back as a way to make money, but I don’t’ know if the Gen x and y buyer will jump on that bandwagon. They are skeptical of the establishment and they seem to be buying more for what they love and not just what they will make on it.
There is a great article by Market Watch that talks about added home value with walk able communities. This proves my point in a way. People are beginning to value homes that are conducive to their lifestyles. In this case, being able to walk to school, shopping, and amenities.
When the housing market does return, I think we will better see this attitude change. The foreclosure rates paint a great picture of how many people lost their investments. I truly believe that average homebuyer will shift their mindset away from investing and more towards finding a true home. America has learned a hard lesson in real estate investing these past few years. The future will reflect that.
I recently read an article in the New York Times titled “Adding Fees and Fences on Media Sites”. It talks about the on going speculation of paid subscription plans for the major media players.
If you aren’t paying attention to the headlines about the future of print media, I encourage you to do so. 2009 was an interesting year for news outlets and media companies. Deemed as the year of Twitter, news affiliates began to scramble for new profit models for their publications.
The popularity explosion of Twitter and other social networks only added to the increasing fears of the major media companies.
As new pay models begin rolling out, the advertising models will obviously be different. The root of this web news reform lies in the lack of advertising profits. As blogs and Twitter became more credible in the last few years, the major players lost readership and in turn lost advertisers.
What To Expect
It is hard to say what will come of all this. There are so many media companies mobilizing and merging to establish a pay wall system. I think that advertising models will vary based on the publication.
The removal of ads is a strong possibility to me. I don’t think this is something publications will do at first, but may do in response to user feedback. I know if I were paying for web content that I once received for free, I would want all ads removed. Isn’t this what caused this change in the first place? If I were paying a subscription fee, why would I still be seeing ads?
I say all this because it has a direct effect on our marketing efforts. Imagine this scenario.
Publications including magazines are no longer in print. Physical newsstands are a thing of the past. (This might become a reality sooner than you think) Publications exist only in digital form. If publications charge readers and remove advertising, where does that leave us as marketers? It has the potential to totally eliminate a communication channel.
My point is that the marketing tools that we have grown accustomed to are going away. Think about what this trend might mean. We could see a future with no more newspaper or magazine ads. No more web banner ads on major news publication sites. These are things we have relied heavily on in the past.
It seems a little scary, but I suggest you stay on top of these changes. An understanding of change will help you take advantage of its result.
As residential and commercial property owners continue to make sustainable upgrades in the name of energy savings, builders and sellers should be paying close attention to the trend.
According to a Matternetwork.com article, property owners are making upgrades to spaces built less than 5 years ago. Why? Because they understand how important it is to cut energy consumption. Not in the name of the environment, but the all mighty dollar.
Government resources such as www.energystar.gov are making it easy for owners to evaluate their energy saving numbers. Owners are using these tools to calculate energy waste and determine where necessary upgrades could cut energy costs for a unit.
With the above in mind, I think there are some noticeable effects of the energy efficiency movement. Below are some of the main reasons we should be building/retrofitting and marketing a sustainable product.
Energy costs
Top 500 corporations are not going to lease buildings that are not green and/or LEEDS certified
Studies are showing employees are healthier and are out less when working in sustainable structures
I think the public will push for public and commercial buildings to save energy
Can you really afford not to build with a sustainable initiative?
Many developers will ignore sustainable options in order to reduce costs to a project. At this point, doing so may be extremely detrimental to the long-term value of a product.
From a marketer’s point of view, you are putting yourself in a hole from day one. Sustainability, Energy Star, and LEED are increasingly losing their “buzz word” status. These are ideas and certifications that are becoming the standard.
Hypothetically, let’s say you delete the energy saving features. What if your competitors opt for the features? They have a distinct marketing advantage over you.
Those who skimp on the energy saving features will probably set a lower price point for their product and market this point. This is a mistake for two reasons. For one, you should market the savings from energy efficiency, not the price point. By adding these features, you can breakdown monthly estimated energy costs in dollar signs for potential buyers or renters – point out the money they will save.
Reducing the cost of the rent will lessen the value of your product. Why not increase the vale by investing in energy efficiency? You are spending money that will generate a great ROI. By cutting rental costs, you are losing money that you will never be able to get back.
