There are many ways to invest in property, and lots of decisions to make along the way including whether you want to make ethical investments part of your portfolio. From the type and location of each property to the focus on rental income or capital gains, clear decisions are required from the outset.
Over recent years, ethical factors have become important considerations for many property investors. A growing number of property investors are looking to create something positive by investing in real estate that supports their local community. When you do it right, ethical investments deliver fantastic returns while minimising risk and maximising social gains.
At Positive Income Properties, we help ethical investors to generate rental income and achieve capital growth while supporting their local community. Read on to learn more.
What Are Ethical Investments?
Ethical investing is also known as socially responsible investing. Ethical strategies seek positive financial returns, but they also consider the social and environmental implications of funding decisions. Ethical investments are everywhere these days, from shares and energy-related products to businesses and real estate opportunities.
Implications For Real Estate
In the property market, ethical investing is about giving back to the community. This type of investment often involves low-cost rentals, including Specialist Disability Accommodation (SDA) for the National Disability Insurance Scheme (NDIS). There is a housing crisis in Australia at the moment and ethical investing can be part of the solution. If you want to expand your portfolio in a way that secures financial gains and supports community interests, there are lots of opportunities available.
The Challenges Of Ethical Property Investing
Like all significant investment decisions, there are numerous challenges associated with ethical assets. Let’s take NDIS property as an example, with investors often facing higher costs and lower rental returns. There can also be stricter regulations in this field, due to the complex needs of many tenants.
Most challenges associated with ethical property investing are related to upfront costs and compliance issues. While market demand can also fluctuate, this is true for any property investment.
One way to negate the challenges of this form of property investment is to work with experts like our team at Positive Income Properties. We take the time to understand your needs and goals and offer tailored solutions that will help your property investment opportunities work for you, not hinder your progress.
The Opportunities Of Ethical Property Investing
There are also many advantages associated with ethical property investing, including higher rental yields. Many properties of this type are in demand, and this situation seems unlikely to change with the current housing crisis. The length and stability of leases can also be a major plus.
The NDIS provides a consistent source of funding for SDA properties, which leads to reliable income and relatively low vacancy risks. Many properties have the potential to deliver high returns over time, due to a unique combination of rental income and capital growth.
Depending on your goals, there are many reasons to get involved with ethical investments. Along with the advantages we’ve listed, there’s a real chance to have a positive social impact.
Rental housing is more than an investment. It’s an essential resource for a growing number of Australians. With fewer people able to enter the property market, delivering stable long-term rentals is a great way to support your community.
If you want to get involved with NDIS properties or discover a range of ethical investment opportunities, please contact Positive Income Properties to learn more.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
