What are the main drivers for capital growth?
Paul: Good day, guys. It’s Paul Glossop again here from Pure Property Investments. Again, this is part of our wider and educational series. What we’d like to talk about tonight and it’s something I always get asked by my clients and also just people who contact us from either direct advertising or people who see us by referrals, facebook, etc., is we get asked the question, “What is going to be the contributor or the main contributor to capital growth in the areas that we’re buying?” And I guess ultimately, we’re buying property to earn capital growth in that property over time.
There are multiple factors. There’s always factors in why properties go up in value. and I’m not going to rattle off a laundry list of ones that we adhere to, but I will tell you the number one that we always look for. The number one factor that we always see time and time again, that contributes to capital growth, is income. And look, it might not be too profound, but the more people earn, the more they have the ability to pay more and that comes down to things such as, not only for properties and the purchase price but also for rent.
What we try to look for areas that are going to allow our clients, whether it be our property investors or also potential tenants, to actually buy in areas that are going to look at achieving better than what the state or national average will be from income growth. We look for things such as large infrastructure projects that are going to give higher paying jobs to that area than would have previously been there. Things such as larger hospital developments, rail networks, big civil jobs and also what contributes to that is we want to encourage people to come and live in that area so not only are getting higher income being earned by the people who live close by, but hopefully over time, it’s going to encourage more people from other areas to move into that suburb that has the higher paying jobs because obviously, they’re closer by. That means that we’re going to get more competition.
Hopefully, that’s something that’s quite valuable. Put it in your hip pocket, take it as you wish, but again that’s probably one of our number one growth factors or contributing factors to growth, in capital growth over time.
Again, hopefully, this helps and we’ll see you very shortly. Cheers.
DIY property management, what you need to know
Good day, guys, Paul Glossop here from Pure Property Investments. Again, this is part of our educational series, and again, what we try to do is, is try to work on questions we get asked both from our current clients and also viewers, alike. One of those questions currently in, and I see quite a bit, both in the property investment media and also just in the greater and broader community is, DIY property management versus paying a property manager to actually manage the property themselves, and a little bit about where I see the pros and cons.
To be perfectly honest with you, I see far more pros to using property management than I do see cons, and conversely, I see far more cons to not using a property manager as conversely to the pros. So, what I will do is just quickly explain where I see the huge benefits of using a good qualified property manager to make sure they’re going to manage your investment properly, right ongoing. They are things such as… Look, let’s be honest. They charge us anywhere between 5% and 8%, depending on which state and what you’ve negotiated, and from that fee, you kind of ask yourself sometimes, “What do I get for that money?” Well, if you’ve got a good property manager, you really should be getting good value for money, and when I say “value for money,” I should always see from my property managers, quarterly inspections, and those quarterly inspections are coupled with an inspection report, hopefully that has some pictures associated with it. Sometimes, they will also give you a call to walk you through any issues, questions, queries, concerns.
The other aspect, too, is from time to time our investment properties have issues with the tenants, and that might mean that you have to go to Residential Tenancy Tribunal. And if you are managing that property yourself, you’re going to have to actually represent yourself in the tribunal, which I can tell you straightaway is going to be, firstly, a very time-consuming matter and probably, most likely you’re not going to win the case because there’s a lot of documentation you’ll need to get in place that you probably won’t have there.
Other things that I really make sure that I’m getting out of my property managers, and the good property managers provide this, is screening for new tenants. They make sure they go through particular approvals and they go through all the right facets to make sure you’re getting the right tenant in that property every single time.
When we look at other aspects ongoing, we look at things such as managing your financials. The property managers are the ones who are taking all of your bills, taking all of your rent, and encompassing those and providing you an ingoing/outgoing statement, so come end of financial year, they’ll provide you with a nice, concise report which you’ll therefore forward onto your accountant to make sure you’re getting all of your maximum tax savings that you should be getting. And I can tell you right now, if you’re doing that yourself, it’s a lot of effort, a lot of time, and also, you’re probably not going to do it the right way every single time either.
So look, there are just a handful of things that I see as far as why I always push my properties and my clients’ properties to a very substantially qualified and also an expertise field property management team.
Hope that works and it helps for you. And I’m sure that this video and probably more others in the future will, hopefully, give you more of that education that you need to make the wiser decisions when building your property investment portfolio. Speak to you soon.
What is a better buy, units or houses?
Pure Property Investment, what we do and how we help build successful property portfolios
Paul Glossop: Hi guys, my name’s Paul Glossop. I’m the owner and director of Pure Property Investments. Pure Property Investment is a full-service concierge property buyers agency. What we do on a regular basis is work with property investors to help build, strategize, and secure properties to build a broader property investment portfolio.
Unfortunately, what happens on a regular basis and what we see are clients coming to us who have literally bought themselves out of the market. That might mean that they’ve bought the wrong property, at the wrong time, for the wrong reasons. Further to that, these same clients are typically people who have the ability, whether it be via their actual earning capacity or equity that they already own to actually go off and build large investment property portfolios that will allow them to achieve their dreams and aspirations down the track.
It doesn’t have to be that way. What we do here at Pure Property Investment is we sit down in the initial stages and we go through lock stock, what they’re looking to achieve, what they have the capacity to do. We, therefore, engage our professional services to go and buy strategic properties and then give them an all-encompassing team to allow them to buy the right properties, in the right structures, at the right time to go off and make sure they can achieve both the passive income aspirations and also capital gains that they’re looking to achieve, whether it be into their retirement or in the years to come.
So if this sounds like something that you’re interested in and would like to hear more, please feel free to give us a call on 1300 985 428. Or alternatively you can email us at enquiry@www.purepropertyinvestment.com, and we can set up some time to speak with myself and my team to go through a full obligation free property strategies session. And we can look at talking about what the options may be for you and also how we can help to service your property investment portfolio down the track. Thank you.