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Fag THE HERALD OUTLOOK Jinur IK The economics of energy efficiency There is an economic factor in vir tually every decision you make about home energy management from undertaking such simple measures as caulking and weather- stripping to buying a new super energyefficient dwelling Careful consideration of the facts and your own circumstances should enable you to make wise judgments that will benefit you financially long into the future R2000 no guesswork If you are in the market for a new home you can remove the guess work on the energy factor by limit ing your search to super energy- efficient dwellings such as an 2000 home There are now more than homes across Canada homes render improved comfort immediate costsavings and longterm security against rising energy prices Buyers are therefore assured of maximum energy effi ciency and increased comfort from day one Although an R2000 home costs five to 10 per cent more than a comparable conventional dwelling its energy requirements will be considerably less resulting in lower overall ownership costs and sav ings that grow year after year Compared with conventional homes of the same design and floor space R2000 homeshave achieved re ductions of more than percent ir the energy needed for space heat That translates into a cent reduction in your heating costs Intact these energy cost saving may help you to afford a higher priced home That is because many financial institutions are willing to includeenergy costs in the equation for mortgage approvals When determining they can afford a particular home many buyers take into account only the principal interest and taxes the PIT formula used by many mort gage companies involved in the purchase However energy costs are also an important factor To fairly evaluate tradeoffs between purchase and operating costs the PITE equation was developed prin cipal interest taxes and energy operating costs represents the total cost a home By including operating costs in the budget when pricing a home the equation takes into ac count the impact of seasonally vari able costs When the equation is used the benefits of an R2000 homes lower heating and cooling costs become obvious Monthly payments remain consistent because energy costs are calculated in advance Using some Canadian lending institutions are now allow ing buyers of homes to put up to per cent of their monthly income into a mortgage instead of the usual cutoff of per cent The result is a higher debt service and more flexibility in home size and design As well although an home may cost more PITE payments per month will be consis tent with those of a conventional home beginning sometime between the third and fifth year homes are also sound investments because of their high- quality construction R2000 stan dards far exceed even the toughest provincial construction codes and the attention to detail needed to build these homes results in a supe rior product with an excellent resale value Retrofitting an existing house R2000 technology offers some obvious and immediate energy benefits but that doesnt mean you should put your existing home up for sale You can conserve energy save money and protect your in vestment through such home retro fit measures as upgrading windows or adding insulation These meas ures can be an effective buffer against future energy cost increases as well as a means of increasing the value of your house Retrofit measures such as air sealing new windows insulation in the attic and upgraded wall insu lation add up to energy savings in the home But before undertaking any of these measures it is impor tant to weigh the benefits against the costs and to develop a list of priorities for energy conservation projects For example replacing faulty windows with more energy- efficient ones will improve the comfort and value of your home However from anenergy efficiency standpoint less expensive activi ties such as caulking and weather- stripping may have shorter payback periods Hard questions must also be asked about upgrading insulation which is generally regarded as one of the most effective conservation meas ures available to homeowners For example while many homeowners think they can reduce their energy costs by adding insulation to the attic the question remains as to how much insulation should be added before the costs begin to outweigh the benefits When considering insulation in any area of your home many vari ables must be taken into account for example the existing levels of insulation the cost of the additional insulation materialsand installation the cost of energy interest rates if you have to borrow money for the project the efficiency of the heat ing equipment the of the building and the climatic conditions in your area All of these factors will have an impact on the payback period for the project If you determine that payback will be quick three or four years the project is worthwhile On the other hand if you do not anticipate recovering your costs for 1 5 or 20 years you should seriously question the investment One project that offers good payback is the installation of an automatic setback thermostat This device can be programmed to raise and lower the thermostat setting in your home at specific times each day For every degree Celsius you lower your thermostat setting be low 20C over a 24hour period you can reduce your space heating costs by about five per cent Many renovation projects pro vide an excellent opportunity to add insulation and improve the energy efficiency of your home at a small incremental cost Look for opportu nities forpiggyback conservation when undertaking projects such as finishing your basement sealing foundation walls from the outside installing siding or remodelling a kitchen or bathroom The message to homeowners and potential home buyers is clean energy costs are an expensive fact of life in Canada today and they will become even more so when world oil prices rebound But en ergy costs in the home can be mini mized After carefully weighing the benefits against the costs more and more Canadians are coming to the conclusion that home energy con servation represents a sound invest ment for the future NATIONAL REAL ESTATE SERVICE BRAND REALTY INC DOUG MEAL SALES REPRESENTATIVE Business 416 8730300 Residence 8776279 COUNTRY LIVING YET ONLY TO THE GO TRAIN 45 acre plus super clean 3 bedroom bungalow with Beautifully finished rec room with bar and glass door Elmlra Hardwood floors throughout plus plenty of walnscottlng Refinlshed kitchen and 2 French Provincial doors from dining room to nearly finished family room with knotty pine cathedral celling and big bay window All this overlooking golf course FOR SALE Industrial 18000 square foot combination shop and office space Call Doug Meal at 8730300