Lots of financial experts and media commentators might be spreading rumours about an impending property crash for the Australian Property Market and there is nothing but bad news about the slowdown in Perth – but as usual this kind of speculation should be taken with a grain of salt. There are lots of reasons why 2015 has remained a great year for property investors – and lots of reasons why it should stay great.
Foreign Business Expansion
The expansion of foreign business in Australia has been all over the news lately with China overtaking the US as the largest investor in Australian real estate. While stories like this always invite some hand-wringing among politicians, the fact of the matter is the foreign investors are good for Australia and the housing market. Foreign investors bring in a lot of cash and generate a lot of opportunities for business. Why do they have so much confidence in our market but we don’t?
In 2014, Australia’s population grew by over 400,000 people, and exhibits no signs of slowing that pace. The growing population also helps spur the demand and value of housing and properties. In the latest population projections released December 2014 by ABS, Perth is still expected to have the fastest population growth over the next 30 years.
As the cost of finance moves gradually lower, more and more young adults are pursuing ownership of their first home, and this is changing the makeup of the Australian household. Average Australian family size dropped by over a percentage point, and these new homebuyers keep the market healthy and competitive. Smaller, low cost housing types are making ownership more affordable.
“Be greedy when others are fearful”- Warren Buffet
The hardest time to look at buying is when the media, your family and your friends are running for cover and telling you not to. However this is the best time to pick up a great buy. In Perth land developers and builders are offering major incentives, homes are getting built quicker and it’s a buyers’ market out there. I always look back on times like these and wish that I had purchased more.
These are just some of the things that will help keep the Australian housing market strong. Visit our property investment blog to learn about more things you should be aware of!