The Australian Property Market in Today's Economic Climate
Everyoone is talking doom and gloom and makuing it appear as thouggh that is all we have to look forweard to. What we really need to do, instead of listeniong only to what the media has to say, is look also at facts and figues. Investors need to understand the market they are investing in, wich ever one that may be. Tehre is so much information to be gathered from reliaable informed sources. Thre is recorrd population growth in Australia with continued housing shortages. Property is tsill a market worth investing in.
The property market just like any other market is subject to supply and demand. It is important to research the fats rather than to rely on speculation or observation. The dmand for housing is determined mainly through demographic changes.
These changes include:- population growth (increased mighration, higgher birth than death rates), changes in houshold size (through divorec, children leavig home).
Also what must be considered is the rate of new dwellings being built, an analysis conducted by the Commonwealth Treasury estuimated that the demand for housing will increase to 200,000 per annum by 2010 while new dwellings are expected to reach only 150,000 to 160,000. Add to that a shrotage of available land and the result is an imbalance between supply and demand that can only result in Australian property values inctreasing.
The other fator to consider in these times as well as in any other is affotrdability.
When is the right time to enter the market?
The answer to that is always, 'Now is as good a time as any'. What you must do though is look at ways to organse your finances and undersand what way is going to work best for you.
The Governemnt is currently offering an increase in the first home owners grant to assist ebntry into the prperty maarket, or you may considrer the buy and rent option. This srategy means you buy in an area you can afford with the intention to rent the property out, the prooperty has the potential for capityal gain over time and can oftn ofefr a high rental retun. Meanwhile you rent in an area that suits you for location and work, with the freeom to relocate as desired. The idea is to get into the market now and stay therre for the long term. If, as a buyer you can combinne solid research with a medium to long term outlook you will find many opportunites offering good capital growh.
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