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The 3 Best Strategies For Ethical Real Estate Investing
Ethical investing is a prevalent concept right now as people are increasingly concerned with their impact on the planet and local communities. Many people are looking for ways to invest and grow their money while also contributing to a socially responsible enterprise. Often, this means buying shares in companies that are making a positive impact, like green energy companies, for example. But if you are looking for an ethical investment opportunity, real estate is the way to go.
At its core, it’s a positive investment because you are providing homes for people to live in. Although there are some exceptions, the majority of property investors have a positive relationship with their tenants. There are also ways that you can make your investments even more ethical. These are some of the best strategies for ethical real estate investing.
Revitalizing Deprived Areas
Property developers can make a huge difference to neighborhoods that have fallen by the wayside in recent years. Companies like Urban Spaces, headed by Paul Ognibene of Cohasset, are prime examples of this. They focus on developing properties in emerging neighborhoods to spur growth and provide more housing, encouraging people to move there in greater numbers.
If you can find local areas where other job creation projects are ongoing, you can develop properties in the area and contribute to that economic recovery. This benefits you because land and properties in these areas will be cheap right now but will increase in value as the area becomes more prosperous. However, it is still a very ethical way to invest in real estate because you push that economic recovery forward.
Investing In Eco-Friendly Upgrades
Environmental responsibility is a big part of ethical investing, and real estate investors can help here too. If you own a property, you should invest in eco-friendly upgrades like solar panels, improved insulation, energy-efficient windows, and new heating systems. This will drastically reduce the environmental impact of the property, making for a much more ethical investment.
This is also a brilliant move because it helps you find tenants much easier. A large percentage of people prioritize environmental issues so that an eco-friendly house will be far more attractive. These upgrades will also reduce the property’s running costs, and low energy bills are always a priority for tenants regardless of whether they are concerned about the environment.
Providing Affordable Housing
One of the easiest ways to make real estate investments more ethical is to provide affordable housing. Rent prices are very high at the moment, and there are more renters than ever, which means that you have an opportunity to make a lot of money. However, when you are setting your rent prices, you should consider lowering them a little to offer affordable options for people that would otherwise be priced out of the area. This can do so much to help local communities because it gives people access to new work and schooling opportunities that they otherwise wouldn’t have. After all, they can’t afford to live in that area.
If you want to invest in real estate but the ethical investment is important to you, these are the best strategies you can use.