In recent years I've been asked many times my view on whether green initiatives such as rain water tanks and solar panels added value to a property. Our research showed, sadly, that it did not.

We took various properties, comparable in all ways other than in 'green' features and compared prices. There was no green price premium. It was a disappointing result as we all want environmental initiatives to be rewarded.

True, those who install green devices usually recap the costs over a number of years through lower energy and water usage costs, but it would feel 'right' to give them a capital gain for their pains.

However, because of what must be described as a stunning green revolution, I now feel that the playing field has changed dramatically.

In July, the Federal Government formally committed Australia to an emissions trading scheme, and only last week their chief advisor, Professor Garnaut, proposed a 10% reduction in Australia's carbon emissions by 2020.

Make no mistake, the new cost of energy, and how this will benefit well-designed and well-located properties (and detract from poorly designed and poorly located properties) will become a significant driver of the prices of homes.

With the rapidly escalating cost of petrol, dwellings located close to fast and reliable public transport will be in greater demand, and as the emissions trading scheme comes into effect – pushing up the cost of electricity – wasteful McMansions will become less attractive, making way for more efficient housing designs.

Those households best positioned to deal with the changes are ideally equipped to alter their behaviour and adopt alternative practices, technologies and transportation options. Those properties based on green housing principles will gain favour through the transition into a climate of sustainable living.

The new reality for property fundamentals is such: travel between home and work by car must be reduced. The savings enjoyed by reduced commuting will translate into higher property prices in areas close to transport hubs and employment centres.

These new influences will produce many winners and losers alike, as the rules are all changing. What we shall now see is a more thorough understanding of the cost of living in a particular location and in a particular style of dwelling, and accounting for the entire cost of this decision.

Perhaps it won't be long before we see an energy rating sticker on the front door of a new property, informing the purchaser of the ongoing energy requirements of the dwelling – much like on a refrigerator door, or the windscreen of a new car.

And vendors of established 'ungreen' properties will need to consider retrofitting water tanks, solar panels, insulation, eaves and so on to avoid being discounted.

This shift in sentiment is already happening. In the current flat and falling market, we are noticing suburbs with good transport links performing better than comparable but car-dependent areas.

But the market has not yet fully marked in the environmental premium.This presents an opportunity to the astute investor. Make sure you think about these factors when considering your next investment – because if you don't then someone else probably will.

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The rules are different now. As a property investor you need to ask yourself 3 questions:

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