Nightingale

MORTGAGE interest rate rises, coupled with increased energy costs, present financial challenges for families struggling to maintain their lifestyle of choice.

Many are reluctant to commit, often unaware of how they can buy and run a home that is sustainable in the current market.

According to Nightingale development and project manager Don Fini, housing sustainability is the answer. Nightingale is a leader in the housing revolution, paving the way for the construction of multi-residential buildings which are financially, socially and environmentally sustainable. Housing sustainability consists of financial, ecological and social sustainability and neighbourhood contribution.

There are two sides to financial sustainability, profit and affordability, Mr Fini explains. He says profit is relatively straightforward; a return that allows you, as an investor, to go from one project to the next. Generally this equates to a minimum of 20% profit on cost.

However, there are models such as Nightingale and Baugruppen that work on ‘housing at cost’. Affordability is more complex. Generally, we think of affordability in terms of the purchase price, but have you thought about the ongoing cost of living in your home?

This ‘cost of living’ could be a contributor to the mortgage and energy stresses. This does not necessarily mean you need to spend more money to build a home that costs less to run.

A smaller home costs less to run and maintain, and having one car instead of two could save you up to $12,000 a year. This is not rocket science, just something you, the homeowner, should consider.

Ecological sustainability looks at the environmental impact of your home. Total energy used includes materials used to build your home (37%); maintenance of your home (22%); energy needed to run your home (40%); and waste generated at the end of its service life (1%).

Current legislation guides us to design homes that consume less energy, so should we consider going beyond today’s minimum requirements?

If we did, everyone is a winner – you, the homeowner, and the environment. The graph below illustrates there is a tipping point where your investment and energy costs balance out each other. In layman’s terms, the additional cost for a better performing building does not necessarily cause any additional mortgage stress because the additional cost is negated by the reduction in energy costs.

Green mortgages are currently under development in Europe for homes which perform well above the norm. What this means is you are able to borrow more money because your living costs have been reduced – giving you more disposable income.

This could be a way of incentivising better built homes.

Social sustainability means community. When do we start to build connections with potential neighbours? Usually after we have committed to buying a house, possibly during and never before. By knowing your neighbours and becoming part of your community you are able to develop a support structure that currently does not exist within many existing communities.

Robert D Putnam, in his 2000 book ‘Bowling Alone: The Collapse and Revival of American Community’ states, “Social connectedness matters to our lives in the most profound way. In recent decades public health researchers have extended this initial insight to virtually all aspects of health, physical as well as psychological. Dozens of painstaking studies from Alameda (California) to Tecumseh (Michigan) have established beyond reasonable doubt that social connectedness is one of the most powerful determinants of our well being. The more integrated we are with our community, the less likely we are to experience colds, heart attacks, strokes, cancer, depression, and premature death of all sorts. Such protective participation have been confirmed for close family ties, for friendship networks for participation in social events, and even for simple affiliation with religious and other civic associations.”

Neighbourhood contribution provides positive connections. For example, consider how your home will look in the urban landscape because it is not isolated. It is part of your community.

Housing sustainability is not one dimensional, it requires an holistic approach to find a solution. Australia’s population will grow from 22 to 36 million by 2050, which means 6.5 million new housing units will be required in the next 35 years. We need new housing that integrates access to transport, employment and services, including meeting the needs of Australia’s ageing society and families who want to be near the CBD.

Nightingale Housing is well placed to help deliver multi-residential housing that is environmentally sustainable, financially affordable and socially inclusive. We believe that what we do can positively impact the urban environment and promote better health and well-being without the stress of mortgage rate rises and increased energy costs.

The Nightingale model includes a set of systems and processes for better housing. It exists to enable licensed architects to develop Nightingale buildings using the knowledge of architects who have previously developed Nightingale buildings.

It aims to deliver sustainable, affordable, liveable homes that connect its residents with the community. Nightingale Housing does not design nor build buildings. It acts to facilitate the process of bringing Nightingale buildings to life based on the sustainability model. We seek appropriate parcels of land, we licence values-aligned architects to deploy the Nightingale model and we keep those who have registered their interest informed about purchasing opportunities and processes.

Additional information at https://nightingalehousing.org.