How to Get High Returns on Commercial Property With Social Impact Investing
by Mish Daniel | Free Information
Are you eager to not only invest, but to do something that’s impactful, valuable, and worthwhile beyond making a profit? Something that makes a difference in people’s lives, and benefits the environment?
You’re not the only one. Many potential investors are increasingly aware that our society and our environment are both in need of help. And that it will take more than just making a profit if we want to continue to live in a sustainable way. That’s why social impact investing is an up-and-coming and very exciting industry!
Someone who knows all about creatively making a sustainable impact is Symon Peters from 360Collective. He has dedicated his life to making a positive difference and is building a legacy with a team who are learning and growing in the industry
We were keen to learn more from him in our latest on demand masterclass. He spoke about the challenges in the Australian rental market and the current innovations. He also generously shared information about his recent projects and gave us insight into the world of Social Impact Investing, which he knows so well.
Listen to the full conversation below, or keep reading. 💡
Why is impact investing important?
Due to how people’s lives have changed over the years and the change in demographics, rental properties in Australia have become increasingly scarce. Some locations only have a staggering 0.5% available rentals.
Nowadays, single people or couples need places to live that suit their needs, and decent boarding houses are a thing of the past.
The government and non-government organisations (NGOs) are doing their bit to alleviate the problem but it is not enough.
The private sector is focused on doing bid-to-rent transactions, designed to overcharge rental prices up to 20% over the market price. They can alleviate this problem by creating rentals that are below the market price, where the focus is not on profit only but on building smart solutions that help solve societal and environmental problems.
What is impact investing & how does impact investing work?
Social impact investing is a cutting-edge form of investing that seeks to generate financial returns and social and environmental benefits.
The triple bottom line (TBL) is a model that takes into account the environmental and social aspects of an investment, where you:
- Make good returns for your investors
- Provide social benefits
- Build and develop in a sustainable way
In order to pull this off well so everyone gains,, you have to be innovative and creative. This is the exciting part!
Investing for social and environmental impact
There are several reasons why social impact investment provides the biggest opportunities:
- There is a growing demand for sustainable and responsible investments. Research has shown that 70% of millennial investors have a triple-bottom-line approach to investing.
- The social impact investment projects are mostly highly innovative and groundbreaking, which not only makes them exciting but can provide a significant competitive advantage.
- Impact investments can generate strong financial returns as well as social and environmental benefits.
- Social impact investment gives you the ability to do good, follow your passion, make a real impact and leave a legacy. This is powerful!
Symon’s legacy for 360Collective is the young people they’re mentoring. Experienced, older staff members are empowering the next generation to make a positive social impact in Australia.
Social Impact Investments with 360Collective
There are many different types of social impact investments available, so investors can find one that matches their risk profile and investment goals.
Some of the exciting projects that Symon and his team are working on at the moment are:
Work begins on Timor34 in 2023. An exciting and innovative rental project that will offer below-market-rate rentals to young professionals and divorced women over 50.
The 72 single-occupant secure rooming accommodation modules will be fully furnished, with power and solar panels installed. Each unit will have its own outdoor and communal areas.
It will be constructed in modules, with lightweight materials which help keep the costs down. It will be fully furnished and include power, with installed solar panels and batteries. Each module will have a universal access room, a kitchenette, and an en suite.
The location is perfect, close to public transport and a major shopping centre, so residents won’t need cars. However, there will be car-share options available. The planned technologies in the building include wifi, scooters, bikes, and more. And because the building is sustainable and eco-friendly, it’s great for the environment too!
Burpengary Business Park is the perfect place for someone who wants to set up industrial office space. This business park is different from others because it’s set up to make a social impact.
With ease of access to the Bruce Highway and into the Redcliffe Peninsula. Burpengary Business Park consists of 40 units and is the region’s latest industrial park servicing business owners and investors alike.
There is a high demand for this type of rental, and a great opportunity to make a profit.
Other Social Impact projects
- Man cave developments: One trend that is becoming increasingly popular is man caves. These are residential and commercial developments that mix living and working spaces together in a way that is both practical and convenient.
- Storage Units: There is a high demand for storage units right now. People are buying houses, but don’t have enough space to store their things in a stylish and attractive setting.
Investing in Existing Commercial Property for Social Impact
You may also consider investing in existing commercial property to have a positive impact on society. With existing properties, you can make a decent margin of profit on the deal with reduced risks. It can go more smoothly because often the properties just need a bit of touch-up, which reduces the time and cost of getting the project done!
Always Consider the Risk
Even though you want to make the world a better place with your investment, the same rules still apply when it comes to managing risk, you must still consider the risk profile and make informed decisions.
An important risk factor to consider is the risk of time and how long a project may take to complete. It is difficult to predict what will happen beyond the next year, so you must be prepared for anything. The market and economic conditions can change rapidly, making a project less viable.
We hope this has given you some ideas on how to get started with your own impactful investment project. There are many opportunities out there to be creative and to be part of something you’re passionate about!
If you have any questions – book a no obligation 15-minute chat with one of our experts at Revolve Commercial. In this call, we’ll address your questions and map out what your potential next steps are to growing your wealth portfolio.
📞 Don’t wait – book your free call today.