With policy constantly shifting in an attempt to keep up with the climate crisis, investing can be a dangerous game. The good news is that there are ways to protect yourself against waking up one morning to discover that your portfolio is no longer compliant. In this piece, we’ll be going over strategies to avoid this, so you can maintain confidence in your investments.

Selecting CBD-Based Spaces

One smart strategy for keeping your profile in compliance is investing in commercial real estate for sale in Melbourne. CBD-based locations tend to be upgraded regularly to maintain their prestige, and this means they’ll come with more green features than buildings that haven’t been worked on in a while. As a bonus, these spaces tend to be high-density, which can mean higher yields.

Favouring Green Properties When Looking To Expand Their Portfolio

If you’re searching for properties outside of the CBD, you can still aim to select investments that have green features. Features to be on the lookout for if you care about the planet include solar panels, upgraded insulation, double-glazed windows, and eco-friendly building materials.

Renovating Current Properties To Be Green

You could also consider retrofitting your existing investments with sustainable design, green technologies, and eco-friendly components if this is possible. There tend to be grants and schemes available to fund these sorts of upgrades, and these can greatly reduce the upfront costs for you. So projects like this should receive priority when you’re looking to make your portfolio greener.

The above-mentioned elements to look for when purchasing a new investment can also be retrofitted to existing ones, so this is a good place to start. Although these upgrades may impact your income while the projects are underway, if you complete them in stages, the impact shouldn’t be too significant. As a bonus, you’ll often enjoy increased income once these upgrades have been made.

Investing In Technology

Another way to ensure your portfolio remains compliant with changing regulations designed to combat the climate crisis is to invest in green technology. This could include things such as air filters that improve indoor air quality, upgraded climate control systems with better efficiency, smart locks linked to other systems that enhance energy efficiency, and more. All tech added to your buildings can increase your income potential while also reducing your environmental impact, making this a win on all fronts.

Diversifying

Finally, by diversifying your portfolio, you’ll help hedge your bets against any potential issues that may arise for you. For example, you may consider investing in a solar farm, or looking at residential properties to supplement your commercial ones. Startups are also constantly looking for investors, and green companies are really taking off in the current climate.

The stock market is another great way to diversify your portfolio, as the required outlay is often much lower than brick and mortar investments. So you can quickly build up a range of dividend-paying options to help ensure that you’ve got income flowing from multiple streams at all times.

There is no Planet B, so it’s everyone’s responsibility to work toward a greener future so we can protect our current home. Having said that, this does not need to impact your investment income, as long as you employ the right strategies and keep on top of legislation and regulations. The climate crisis isn’t going anywhere, but these steps have been helping commercial real estate developers stay compliant (and profitable).