The Real Price of Tesla Solar Shingles Is Through the Roof

Tesla Solar Shingles

Tesla’s announcement to start selling its long-awaited solar roofing system was met with mixed reviews last week when the automaker published a cost comparison blog on its website.

The news of the announcement follows the 2016 merger between Tesla and SolarCity — one of the largest solar energy companies in the United States — and further implements Tesla CEO Elon Musk’s vision of a future defined by carbon-free energy.

In the blog post, Tesla said the new solar roofing system will cost $21.85 per square foot for an average American home — roughly 2,500 square feet.

While the product might be pricier than a traditional roof ($4.00-$7.00 per square feet,) it will ultimately pay for itself in reduced electric bills — a process Tesla says will take about 30 years to realize.

And if that isn’t enough, in reality, the price might nearly be twice that amount.

The Real Costs

The true cost, according to the blog, will be about $42 per square feet for solar tiles and $11 per square feet for non-solar tiles. Although Tesla recommends at least 50 percent of solar coverage to meet your home’s energy needs, the automaker factored in only 35 percent of the roof being covered with solar tiles when determining the average price.

Tesla even published a cost calculator for customers to price out their own roof with coverage of up to 70 percent of solar tiles.

tesla solar shingles

The price was calculated for a roof where 35 percent of the tiles are solar, in order to generate $53,500 worth of electricity, which according to Consumer Reports would make a solar roof more affordable than an asphalt shingle roof.

Regardless of the percent of coverage, costs will vary significantly depending on customer choice and the size of the roof.  But one thing is for sure, the installation before factoring in the cost of energy will be much higher than a conventional roof.

Energy Wave

Fifty years ago, the idea of building eco-friendly modular homes, using energy-efficient products, renewable materials and solar panels was impractical. Today, the momentum is with renewable energy, and because of proven tax benefits, more developers are opting to build energy-efficient homes and facilities.

For example, this assisted living facility in Carriere, Miss. will be developed as a “Green” building, which will significantly reduce its monthly utility costs.

This is all part of the global shift designed to reduce our reliance on fossil fuels, eliminate pollution and promote green energy alternatives. So, even though solar roofing isn’t cheaper than other current options, it may be a practical alternative for some energy conscious consumers.

The Bottom Line

But here’s the bottom line: although the installation includes materials and the removal of your old roof, taxes, fees and additional construction costs such as skylight replacements and structural upgrades are not included.

Even if someone decides to purchase Tesla’s Solar Roofing, most Americans live in their homes for less than a decade before selling. This means the majority of homeowners who purchase the new product will have relocated long before the investment pays for itself.

This feature is made possible by using two types of glass tile, solar tile and non-solar tile. Both appear the same from street level.

It’ll be interesting to see how much success the automaker has selling to different markets, with a price tag that can range from $30,000 to upwards of a $100,000 per installation.

I guess the market niche for Tesla’s solar roof product is that it turns sunlight into electricity, while maintaining the appearance of a traditional shingled roof. Nowadays, some solar panels cost less than $3 per watt for installation, and can pay-off in more than half the time (7-10 years) than the projection for a Tesla solar shingles roof.

Made with tempered glass, this product, unfortunately, will likely be limited to the more affluent suburb market.

So far, other companies have had little success incorporating solar technology into roofing tiles or shingles. As for the bigger picture, it remains questionable if the automaker’s newest gimmick will appeal to consumers as much as its vehicles do.

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Baby Boomers Nearing Retirement Drive New Markets in Affordable, Assisted Living

As the percentage of retired Baby Boomers is expected to explode over the next decade, the demand for assisted living and long-term care facilities will naturally have a parallel effect.

Today, the senior housing industry is considered one of the fastest growing real estate investment opportunities in the national housing market.

Even self-help coach Tony Robbins is getting in on the action, by listing senior housing as the second safest place to invest in a recent blog post on his website.

In 2003, Warren Buffett proved to be way ahead of the curve, when he purchased Clayton Homes — now the largest builder of mobile homes — for an estimated $1.7 billion.

The senior housing industry has an estimated market value of more than $300 billion annually. And the PEW Research Center has shown that the average return on investment for the senior housing industry, significantly outperforms all others within the real estate sector.

In the past, senior housing has been a very resilient part of the housing demand, with occupancy rates trending around 90 percent. Even during the recent “Great Recession” occupancy rates in the senior housing industry remained consistently above 85 percent.

On average, assisted living homes costs between $3,000 to $5,000 per month, per tenant, and can accommodate from 8 to 16  residents per unit, depending on state regulations.

But even with their generally higher education and income levels, many of these future residents will be unable to afford the luxury of paying for quality assisted care.

The average Baby Boomer household, ages 56-to 61-years-old, has about $164,000 saved for retirement, according to a report by the Economic Policy Institute. That amounts to around $8,200 a year, or only $680 a month, to supplement Social Security or other retirement income.

However, the median Baby Boomer retirement savings for the same age group is only $17,000, which is far less than the average household. So in reality, the future for many Baby Boomers approaching retirement is much more grim.

In the same report, an estimated 41 percent of households (ages 55-to 64-years-old) have no retirement savings set aside, whatsoever.

Although the Boomers approaching retirement are generally too young to need assisted-living, (the average resident age being 84) they are already having an impact on that market.

“Assisted living facilities have a projected 30 percent growth rate over the next 10 years, and are selling 18 percent faster today due to a lack of inventory,” said Daniel Summers, CEO of RealtyeVest, a real estate investment company that specializes in raising capital for assisted living and affordable housing.

Invest in Mobile Homes

While the above average income Baby Boomer will continue to push the assisted living capacity demands through 2030,  the remaining will be searching for an alternative to assisted living by downsizing to affordable homes.

“Developers are recognizing the growing demand for affordable housing, and have begun aggressively acquiring and upgrading communities across the United States,” Summers said.

“And many retirees are trading in their homes for RVs and moving into 55-plus mobile home communities.”

“If you’re a Baby Boomer on a fixed or limited income you can rent or sell your larger site-built home and purchase an RV or mobile home and move to the retirement location of your choice,” Summers said.

 

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Why Assisted Living Is the New Investment Opportunity of 2017

IHT Realty Crowdfunding has rebranded itself as RealtyeVest.

Assisted living has recently become a desirable asset for many new and experienced investors.

With waves of Baby Boomers reaching retirement, assisted living is rapidly moving into the spotlight of real estate investing.

It’s no surprise that the target demographic for the business platform has grown exponentially, with more than 10,000 Baby Boomers hitting 65 every day until 2030, according to a study by The Pew Research Center.

The study found that 76 million people were born in the U.S. between 1946 and 1964. If you factor in the influx of immigrants and the amount of people who passed away during that same period, there are about 79.6 million seniors in the United States. If you divide that number by 19 years and then again by 365 days, you’ll find there are about 11,476 Boomers turning 65 each day.

All the same, over the next 20 years, the amount of seniors moving into assisted living homes is projected to rise. This is expected to increase demand for assisted living services and facilities, and provide an exciting opportunity for entrepreneurs and on-trend investors.

In a blog post on Tony Robbins’ website, Ajay Gupta, Robbins’ personal advisor, lists senior housing as the No.2 safest place to invest right now — “meaning they’re not as susceptible to the fluctuations in economic conditions,” Gupta said.

“We are currently facing the largest demographic shift we’ve ever seen — a tidal wave of demographic inevitability as Baby Boomers reach their Golden Years,” the article said.

Today, there are 45 million Americans that are 65 years or older  — a number that is projected to grow to 80 million over the next 25 years.  And with life expectancy continuing to increase, seniors will have to decide where to spend their remaining twenty or more years.

“It doesn’t matter if interest rates go up or down, it doesn’t matter who the President of the United States is, or what is happening in China or Greece; every single day, 12,000 Americans are turning 65 years old,” Gupta said. So, if you can own real estate that is catering towards this demographic, you are almost guaranteed (high) occupancy over the next 25 years.”

RealtyeVest is a real estate crowdfunding company that offers investors the opportunity to capitalize on residential, multifamily and on-trend properties across the United States.

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How to Use a Self Directed IRA to Invest in Real Estate

What is Crowdfunding?

Crowdfunding is a marketplace with a transactional platform.

For instance, imagine sitting at a table in a Golden Corral restaurant and the buffet is filled with platters of colorful food of virtually every type. Well, crowdfunding is much like a buffet for investors. Instead of ordering off the menu, the buyer or “investor” goes to where the “food” is and selects what he wants.

Unlike the traditional way of investing – when the sponsor (real estate developer or entrepreneur) sought out the investor for funding – investors can now log into a network and view a vast selection of real estate sponsors seeking funding. This allows investors to select from deals that catch their interests and fit in with their investment portfolios.

The Benefits of Investing in Real Estate Crowdfunding 

Investing in crowdfunding for real estate is a safer and smarter approach for those looking to diversify their portfolios and grow wealth. This is because the real estate market has less volatility than the stock market and offers higher rates of return than government bonds and savings accounts. Combine that with the tax advantages, and it becomes an essential part of any smart investment strategy.

Since the JOBS Act of 2012, real estate sponsors have been able to successfully crowdfund their projects by raising capital in small amounts through a broad number of individuals that provide access to a wider pool of potential investors. Likewise – with the buffet example – investors have the opportunity to mitigate the risk and invest in several deals in lieu of a single opportunity.

Due to advancements in technology, self-directed IRA investors are able to participate in real estate crowdfunding with their retirement accounts and at the same time realize significant tax advantages.

Those who want to be more in control of their financial future and enjoy more flexibility in the investment types, use self-directed IRAs.” – Dan Summers, CEO at RealtyeVest

Investing with a Self Directed IRA

Investing with a self-directed IRA is not overly complicated.

To make an investment using an IRA, you’ll need a self-directed IRA custodian who can hold the new property as an asset in your account. Once you’ve found a custodian, you open a new account and transfer your retirement funds into it. There are no tax penalties involved in the transferring of funds to the account.

A self-directed IRA can be structured as either Roth IRA or traditional IRA and allows the owner to invest in alternative assets such as real estate crowdfunding. As an investor, you can have a much more diversified portfolio than those invested exclusively in publicly traded securities.

Self-directed IRAs are also protected under federal bankruptcy laws, plus, real estate investments are insurable, which means they cannot disappear into thin air like some traditional Wall Street investments.

The real-estate crowdfunding platform is predicted to reach $150 billion over the next five years.

How to Invest

Although a self-directed IRA involves more of a hands-on approach, if you do your due-diligence and partner with a reputable crowdfunding company, the rewards can significantly outweigh the risks.

Investing with a self-directed IRA with RealtyeVest is as easy as four steps.

  1. Register to view investment offerings.
  2. Choose investments that suit your preferences.
  3. Invest with as little as $5,000 per deal.
  4. Receive scheduled payments.

 

 

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