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.