Better Green?

Buying a house fit for David Suzuki will cost more, but when it comes to cooling, heating or reselling it, that cash could come back

By Nick Rockel
Globe Investor Magazine, September 18, 2008
Illustrations by Pietari Posti

THE SCENARIO

You've found a big lot in the suburbs, and can't wait to replace the eyesore that occupies it with a new, 3,000-square-foot home. Your budget of $150 a square foot puts the tab at $450,000. Should you build the old-fashioned way, or go green? If you value the environment, the decision will come down to more than just cost. At the same time, goodies like heat-recovery ventilators and solar panels do come at a price. Let's see how much more a so-called high-performance home might set you back, and look at the long-term upside.

PARTS & LABOUR

The oft-imitated "case method" of studying real-world scenarios, pioneered by Harvard, is widely considered to be the best preparation for future go-getters. Grads can tap into the school's research centres all over the globe and an alumni network of more than 40,000. Rotman's integrative-thinking approach, which draws on traditional business models to build new ones, is the brainchild of dean Roger Martin. Yet Rotman is focused on the job market, too: Its Corporate Connections Centre provides tips on everything from dressing for Bay Street to prepping for an interview.

CARRYING COSTS

If you consider the clout of your future network to be a critical factor-and you should- Harvard is hard to top. Its grads are a who's who of the corporate elite. Among them is Jeff Immelt, Milt Romney, Meg Whitman, Rick Wagoner, Michael Porter, Michael Bloomberg, Stephen Covey, Lou Gerstner, Jim Balsillie, and even Rotman's Roger Martin, to name just a few. In fairness, Rotman can also claim its fair share of alumni notables, including Bill Downe, Jean-Pierre Sabourin, Richard Nesbitt and Joseph Rotman himself. Pound for pound, however, Harvard's heft is second to none.

RESALE VALUE

Two years of classes, books, plus room and board at Harvard Business School will run you nearly $150,000 (U.S.). But you'll earn that money back in a hurry. Ninety-four per cent of graduates find positions within three months of convocation, and their average starting salary is a whopping $165,000 (U.S). Rotman charges considerably less-roughly $112,000-for its two-year program, and boasts equally impressive job statistics-93% of its students also find positions within three months of finishing. But the big discrepancy is in the paycheque: Rotman grads earn, on average, $111,000 (U.S).

THE BOTTOM LINE

The bottom line Harvard may be much tougher to get into, and more expensive, but if you're looking for better, faster and higher returns, it's the obvious choice. After all, if you weren't after the big payback, you wouldn't be doing this degree.