How Infrastructure Will Impact Your Ability To Create Capital Growth

by | Feb 23, 2021

When investing in real estate, smart investors know that buying well comes down to more than just the quality of a building or property.

This is because one of the key factors to affect the capital growth and rent rate potential of property is infrastructure. Therefore, it is crucial to look at what is going on within the location that you’re planning to buy in. 

Infrastructure includes things like transport, schools, roads and hospitals. All of these factors create jobs and income, which in turn puts money in a property investor’s pocket through good rent returns and steady capital growth.

Currently, in Australia, we’re seeing some huge economic moves and changes that will drive infrastructure growth and benefit smart investors who know what to look for.

 

WHAT IS HAPPENING RIGHT NOW IN AUSTRALIA?

To understand how changes and developments in infrastructure benefits you as a property investor we need to pay attention to what’s happening right now.

In Victoria, the government has pledged $1 billion towards building the southern hemisphere’s largest flu vaccine manufacturing plant near Melbourne Airport, and the 20/21 budget has earmarked $2.2 billion to the Suburban Rail Loop, creating new tunnels and stops that will improve rail travel in the metro areas and beyond.  

NSW is investing in infrastructure too, committing $72.2 billion over the next three years to road and rail projects.

Currently, there is a huge amount of government stimulus and investment in infrastructure. While interest rates are at a record low for us as investors, state and federal governments are also taking advantage and borrowing cash to plough back into the economy.

 

WHY IS INFRASTRUCTURE IMPORTANT TO PROPERTY INVESTORS?

New or improved infrastructure creates jobs, quality housing, and areas of good liveability where people will pay higher rents to live. 

Introducing something like a new train or tram line, a Westfield shopping centre, or a new motorway can drive property prices up much faster than everyday capital growth predictions.

And it’s not just the end products that make a difference. The construction projects themselves create jobs. This in turn brings more people into an area and demand for housing goes up, meaning rent rates can also rise.

 

RECOGNISING OPPORTUNITY WHERE OTHERS DON’T

COVID-19 rattled us. It put our health, jobs and homes in jeopardy, and many people might be scared about making an investment decision at a time when so much is still unknown.

But the truth is that the Australian economy is investing in infrastructure growth, which will help to create jobs, higher incomes and greater wealth.

Buying a property within a 20km radius of new or improving infrastructure projects is a smart, educated investment choice. 

COVID-19 has exposed the quality of how people live, and how we want to live in the future. We want green spaces, high mobility, easy access to local areas and walkability to amenities. We want to be close to the action. 

Infrastructure developments and improvements can provide the quality of life people are demanding now and in the future.

 

BUY RIGHT, BUY NOW

With interest rates low and infrastructure projects high, there has never been a better time to buy – however, you still need a strong strategy to ensure you’ll reap the long term rewards of a successful property investor. 

Sign up for one of our free information and education events, where you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you. 

Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities. 

Recent Articles

How You Can Be 3-7 Years Away From A Multi-Million Dollar Property Portfolio

Using real estate to become a successful property investor is underpinned by one very important philosophy – profits are better than wages. The goal of property investors in the market is to target optimistic returns. However, this does beg the question – if property investing is such a smart and lucrative profit making machine then why don’t more people do it?

Property Strategist Sam Saggers: ‘How You Can Benefit From My Wins And Losses’

Real estate is a game of winning or losing, and as a professional property strategist, in order to get to where I am today, I can honestly say I’ve experienced the full spectrum. But to understand how I’ve managed to turn any loss I’ve had into a gain and support others to do the same, it helps to know where it all began.

The Ultimate Location Rulebook For Buying Property

Within any market – primary or secondary, there are indicators of the market’s ability to perform. When we understand what these market drivers are, we can organise our investment properties into locations that are primed for growth. The ‘Location, location, location’ is actually derived from more than just a post-code. These buying factors are split up into two groups – macro drivers and mirco drivers…

1 Deposit, Multiple Properties – Here’s How!

Buying an investment property and growing a portfolio that is going to generate long-term wealth is a discipline of business. In basic terms, this means you have to have a clear understanding of how you’re going to maximise your profits. Because of this, every investor needs to be able to develop a cash on cash strategy to help bank roll their property endeavours to ensure they have a functional and profitable business model.