The ethics of property investment

If the only priority of investment is to make money then our primary focus should be on the nefarious activities of drug dealing, illegal arms sales and insider trading. Because, let’s face it, that’s where the money is.

But, of course, making money cannot be the SOLE objective of investment (or, at any rate, should not) and improving the society in which we all live must always take priority over the fiscal rewards of investing. In other words, ethical investments is key to not only growing rich in a way that allows you to enjoy your new found wealth free of any pangs of conscience but also benefits the society in which we all live.

Ethical investment is when you know what your investment is achieving, when you know your investment is contributing to a better world.

There are plenty of ethical investments and arguing that one ethical investment is “more” ethical than another ethical investment is buying into an argument that can never be resolved. We can’t argue which good is greater, just that any good is desirable and should be encouraged. Given my interests and my obvious bias towards property investment, I’m stretched to think of a more ethical investment than housing. Everyone needs a roof over their heads, a place to call home that provides them with security, shelter and a sense of well being. Our sense of worth so often begins with a good home base. And, in the course of doing good, I can formulate a strategy that helps you turn your investment into one that grows your wealth portfolio then, I like to think, that is a win for everyone – you and your community

The good news for property investors is that Australia needs more houses than are being built so with every house you build you are contributing to the very real need of our society, and that benefits us all.

I have heard people argue that the tax benefits of negative gearing should be removed because it only encourages speculators to enter the market and keeps home owners out of it. Now, while negative gearing is not part of the BIG Property Investment strategy, anything that works against people investing in property works against the very real needs of our society and the argument outlined in the preceding sentence is utter nonsense.

What do you think would happen if property investment came to a shuddering halt? I’ll tell you what I think would happen. For a start there would be fewer houses available to a growing population which would have the effect of causing the prices of remaining houses to rise, making finding a home even more difficult than it already is.

Further, if property investment stopped that would have dire consequences for the building industry because property investors such as BIG, invest exclusively in brand new properties. The building of investment properties means work for the builders and homes for the workers.

No, for a variety of reasons, not least because it’s what I do, I champion the ethical values of property investment and while you are the final arbiter of how and in what field you invest, I can only tell you that the sense of growing rich while helping others find a home they otherwise might not be able to afford, is a fantastic reward.

Paul Bieg

Director - BIG Property Investments

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