Insights

Todd Millay Quoted on Climate Change and Real Estate Investing

Todd Millay was recently quoted in the Robb Report article “The High-Water Mark No Investor Wants to Hit” about the consequences of climate change for real estate investors.

From the article, which appeared in the print issue of the Robb Report:

Todd Millay, a managing director at Choate Investment Advisors in Boston, thinks about coastal surges, too. When a client asked him about the viability of buying an estate on Cape Cod to have as a family compound for the next generations, he suggested looking at the projections, understanding the worst­case scenario, and then deciding. "Make sure you're not investing too much in what could be a wasting asset,” Millay advises all investors, "and that you're getting other benefits. The psychological rewards of being by the ocean need to compensate for the potential loss in value."

Meanwhile, Millay foresees invest­ment opportunities in industries that are trying to solve the planet's problems. For example, he suggests looking into companies that can resolve some of the global clean-water-shortage issues by purifying water, increasing water effi­ciency, or reclaiming polluted water.

Yet investing with climate change in mind doesn't always mean socially responsible investing. Millay believes there are also opportunities in the same insurance firms that are going to have to raise their fees for homes along the water. That's one way, at least, to have your house and profit from it, too.