Let’s Talk About Ethical Property Investment

An “Investor Bashing” Era

In recent years, property investors have found themselves at the centre of a national conversation — and not always in a flattering light. Headlines talk of investors “pushing up prices”, “forcing renters out”, or “hoarding supply”. Social media is full of “investor bashing”, portraying property investment as unethical. 

But the truth is far more nuanced.

Property investors play a vital role in the housing system. They provide the bulk of rental housing in Australia: 83% of rental properties are owned by private landlords, according to the Australian Institute of Health and Welfare.

So the real question isn’t whether investing in property is ethical, but how investors go about it.

What Is Ethical Investment in Property?

Ethical investing is a familiar idea in the stock market — avoiding tobacco, weapons, or companies with poor governance. But in property, the lines are more subtle. It’s not about what you buy, but how you behave.

An ethical property investor may:

• Maintain their properties to a high standard, not just to protect value, but to respect tenants (this is why we believe Melbourne’s strict minimum rental standards are NOT a bad thing).
• Price their properties reasonably for the market, not exploitatively.
• Invest in regional cities or renewal areas that benefit from population growth and infrastructure improvement, benefiting from and, at the same time, supporting local economic growth while providing much-needed housing.
• Think long-term: stable income, secure tenancy, and steady growth, not quick flips or speculation at the community’s expense.

Ethics and investing aren’t at odds. In fact, ethical behaviour often supports better returns in the long run. 

It’s Not Property Investing That’s Unethical — It’s the Short-Term Thinking

Property investment itself isn’t unethical. But some investor behaviours can be, especially when they prioritise short-term gains over sustainable value. Here are a few examples:

• Ignoring the needs or well-being of tenants.
• Treating properties like shares to be traded, flipping for quick cash with no regard for the broader impact on housing supply.
• Chasing hype or government incentives without understanding whether their investment serves a real community need.

Ironically, these short-term-thinking behaviours often undermine the investor’s own goals. 

• Ignoring tenants’ needs: Tenants are not just rent-payers. They’re stakeholders for your property. When their needs are overlooked, they’re less likely to care for the property and more likely to leave at the end of their lease. This can lead to increased costs from maintenance issues, vacancy periods, and additional leasing efforts.
• Treating properties like shares: Buy-low-sell-high or house flipping may seem lucrative, but high transaction costs can significantly erode profits, and constantly chasing “the next hotspot” is not only risky but also time- and energy-intensive.
• Chasing hype or government incentives: Buying off-the-plan apartments in oversupplied suburbs just because there’s a stamp duty concession? You may face high vacancies and slow rental growth because the amount of supply doesn’t match the amount of demand. 

True wealth comes from long-term ownership and compound growth, not speculation. Investors who do it ethically, focusing on quality properties, tenant satisfaction, and stable homes, usually do better financially.

Is There A Type of Property That Is Ethical to Invest In?

Some buyers’ agents promote NDIS (the National Disability Insurance Scheme) property investment as an ethical investment. These homes serve Australians with disability who need specialist accommodation, and investors can receive attractive government-backed returns: Sounds like a perfect win-win.

But are NDIS properties automatically ethical? Not quite.

Not every property built under the NDIS banner meets tenant demand. Some are poorly located, badly designed, or misaligned with participant needs. The result? Frustrated tenants, high vacancy rates, and disappointed investors. 

Done right, with the guidance of experienced SDA providers, participant-centred design, and location analysis, NDIS property can be both high-impact and high-performing. But when done purely for yield, without empathy or strategy, it can become yet another example of profit-first investing gone wrong.

Final Thoughts: Investors Can Be the Good Guys

Let’s retire the idea that investors are the enemy.

Property investment is a powerful tool for building wealth, and when approached with responsibility, patience and vision, it can be a positive force for tenants, communities, and the economy.

Ethical investing isn’t about sacrificing profits or investing in certain types of properties. It’s about your behaviour: playing the long game, respecting the tenants, and building wealth in a way that feels aligned with your values. 

And it’s not hard. When you invest in low-vacancy areas, charge fair rents, offer secure leases, and care about the people in your properties, you are being an ethical investor. And not only that, you’re also making smart business decisions.

This is where ethics and profit align.

But to make those smart, ethical moves confidently, you need the right insights — and that means data:

• Economic data tells you where rental demand is growing.
• Vacancy rate data reveals where rental supply isn’t enough.
• Rental price data helps you price fairly and competitively.
• Sales market data shows you where you can expect both strong capital growth and/or healthy yields, so you’re not sweating over maintenance costs while still meeting your tenants’ needs.

At InvestorKit, we’re dedicated to helping Australian investors make smart, data-backed investment moves and achieve their investment goals fast. Want help making your next investment move a smart and ethical one? Chat with us by clicking here and requesting your 15-minute FREE no-obligation discovery call!