Investing in Property - Five Reasons Why the Australian Property Market is Still Strong

There has been a lot of discussion about the possibility of the Australian property market sitting on the edge of a financial disaster – but many experts believe that this is simply idle speculation. Here are five reasons why the Australian property market remains active and investing in property is a sound strategy.

Immigration

High immigration levels, alongside natural population growth, have helped Australia develop at a faster rate than any other country in the developed world.

Strong Economy

While there are signs that the Australian economy is beginning to slow down to a certain degree, it remains very healthy and is creating plenty of jobs for anyone who is looking for one.

Healthy Debt Levels

While plenty of Australians are borrowing money, overall most of the debt in Australia lies in the hands of people who can afford it. Also, many Australian are saving more and more money that is resulting in an overall improvement in their personal finances. This reduces the likelihood of a housing price collapse in the event of an interest rate rise or an economic speed bump.

Home Ownership

Almost seventy percent of Australians either own their home or are paying off the mortgage on a home. This high level of home ownership combined with relatively low levels of debt creates a very stable environment for the property market to remain strong and resilient.

Government Confidence

Consumer confidence has been steadily rising ever since Malcolm Turnbull was elected Prime Minister, and business confidence has been rising alongside it at both the state and federal levels. Australia also has a solid banking system with extremely reasonable interest rates, a low default rate, and well-regulated lending practices.

Australia’s housing market should remain strong for years to come and this is why you should be looking to be investing in property.