THE ADDED VALUE OF MADASTER
The construction sector certainly does not lack ambition. Websites and management plans are filled with ambitions, and the material passport is on the rise. Many builders, real estate owners and developers have meanwhile discovered that a Madaster registration, in addition to the social, legal and ecological urgency, may also add financial value. Mitchell Gmelich and Rob Oomen already wrote about the MIA/VAMIL scheme, which can result in a 9% net tax advantage. Here, in this blog post, I will give two examples to show how registration of your real estate objects offers interesting possibilities for new business models and may create financial value for your organisation.
LOWER DEPRECIATION COSTS AS DEPRECIATION NO LONGER DECREASES DOWN TO ZERO
For example, in a traditional economy, organisations depreciate their real estate down to zero within two or three decades. This requires a certain budget that needs to be reserved to cover those demolition costs. By obtaining insight into the real and salvage value of the materials in your real estate object, depreciations go down to the salvage value instead of to zero. I can hear you wondering ‘Would my accountant agree?’ The ‘C8: Van vastgoed naar Losgoed’ study by Deloitte (together with eight large other parties from various sectors) shows that insight into the reuse value of materials can be a financial incentive for real estate owners to start applying circular construction. The potential of this development is also confirmed by the report by Arup and the Ellen MacArthur Foundation in which circular business models in construction are highlighted. There are, however, differences between sectors that make circularity either less or more attractive. A follow-up study is currently being conducted in order to also include the salvage value of a number of products.
KNOWLEDGE ABOUT YOUR REAL ESTATE CAN PREVENT COSTS
There are various ways of saving costs through up-to-date knowledge and direct insight into the materials, products and elements in your real estate object. Examples include having information about your roof construction immediately available in the event of leakages, or about the fire safety of certain materials being readily available, even if you are not the first owner of a certain property.
And what about the costs that could have been prevented if the location of, for example, asbestos had been documented at the time the building was constructed? The future is unknown, but by registering which materials and products are used, we are able to prepare for it.
A BROAD VARIETY OF POSSIBILITIES
About 50 partners have now joined Madaster and every month new partners join. A wide range of parties can support you in registering your real estate in Madaster or offer you added value on the basis of a registration — from construction companies to circular consultancies and from architects to subsidy advisors. Each with their own expertise, connected inside the Madaster partner network.
THE FINANCIAL ASPECT OF CIRCULAR CONSTRUCTION POSES NO CONSTRAINTS, BUT OFFERS POSSIBILITIES!
There are various ways in which a Madaster registration can create value — directly or indirectly — for both business and private construction. We should no longer see the financial aspect of circular construction as a constraint, but rather as an opportunity! This is the only way we can build tomorrow’s world together. We look towards the future – especially in this day and age. Will you join us?