Total Return On Investment

Total Return On Investment

Total Return On Investment

Clearly there are lots of different investment alternatives but not many options are as safe an investment as replacing your windows or doors in the home you love. Matter of fact, investing $10,000 over the last 10 years in your home would have yielded a greater return on investment than if you would have invested in a fund that tracked the stock market.

If you had invested in an S&P 500 Index Fund in 1999, you would have lost over 40% of your investment. However, if you would have invested in new energy efficient replacement windows with high performance low-emissivity glass, it is more than likely your windows paid for themselves and you would now be putting that extra money in your pocket at a rate equal to your monthly energy savings.

This means that the same $10,000 investment continues to pay you back for as long as you own your home!

Please note, that calculation does not include your increase in personal comfort, the added safety and security of new windows, or the time you saved by eliminating all of your routine annual window and door maintenance. This also does not take into consideration the pride and satisfaction investing in your home can bring.

All that said, under, analyzing your return on investment involves more than the savings on your monthly energy bill. In order to analyze your total return, in addition to your energy savings you also need to include any local, state or federal tax credits you may qualify for as well as the predicted impact on the value your home if you decided to sell. According to the cost vs. value report this could be as much as 76% of the investment in southern states.

The good news is there is plenty of objective evidence that is publicly available to assist you with your evaluation. Here are some things to think about when analyzing your return on investment.

1. Your Immediate Savings on Your Monthly Cooling Expenditures:
According to the US Department of Energy, in the Southern Region where Florida and Texas are located, the average annual cooling cost savings achieved by replacing your windows and doors with ENERGY STAR rated products is 30%.

All of Southwest Florida Construction’s products are ENERGY STAR rated. However, with our Cardinal LoE-366 glass in your windows and doors, most homeowners yield even greater energy savings ranging 40-60% depending on the type of windows you presently have…

See more information here.

2. Cost or investment
Not all replacement windows are created equal. Just because a window or door is ENERGY STAR rated does not mean it qualifies for a tax credit. In order to qualify for the tax credit created by “The American Recovery and Reinvestment Act of 2009″, replacement windows and doors must meet or exceed a U-Value and a Solar Heat Gain Coefficient of .30 or less.

All products that use LoE-366 glass meet or exceed this qualification to as low as a .18. According to the manufacturer of the glass Cardinal, LoE-366 has a U value and Solar Heat Gain Coefficient that exceeds the energy tax credit requirements by as much as 60% respectively.

This could be the difference between saving 5% on your energy bill and 40-60% with our glass! This means that as you may spend a little more money for our glass but your savings far outweighs the cost.

See Example below
Low cost Windows: Cost for 10 windows $8,000 (Example cost only) but only save you 5% of a $200.00 a month electric bill equaling $10.00 in savings per month. Divide the 10.00 into $8000.00 and it will take you 800 months to break even. That’s 66.66 Years!!!

Now take our windows at a minimum of 40% energy savings on the same $200.00 a month electric bill equals $80.00 the same investment of $8000.00 and divide the $80.00 savings into the $8000.00 investment and you will break even in 100 months or 8.33 years.

Using this example you can see that the low cost windows did what they were designed to do COST you money while our window investment actually will make you money once the windows are paid for. As cost of electricity goes up the savings number goes up accordingly which makes your breakeven time substantially lower allowing you to start making money on your windows…

The question is do you want your windows to cost you money or make you money?

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Energy Star

3. Your Estimated Investment and Its Impact on the Value of Your Home:
According to Remodeling Magazine’s “2009-2010 Cost vs. Value” report, the average replacement window project costs between $10,700 and $18,400. (Non-Impact). This takes into consideration replacing 10 existing 3-by-5-foot double-hung windows with insulated, low-E, simulated-divided-light windows.

The report also states that the average cost recovered on the investment in replacement windows (in the South East Region) varies between 63.6% and 71.6% upon the resale of the home. The amount of cost recovered depends on a variety of other factors that traditionally affect home values.

These factors include the condition of the rest of the house, the value of similar homes nearby and the rate at which property values are rising — or falling — in the surrounding area. According to the National Association of Realtors, homes in Florida with Energy Efficient windows sell for as much as 23% more per square ft. than homes with old aluminum single pane windows!

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