Overseas Investment – Australian Real Estate Market

by Mike on January 24, 2013

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Is 2013 a Good Time to Invest in Australian Real Estate?

 

Though the global housing market has had its ups and downs over the past decade, Australia is one country which has navigated the turbulence with ease. Despite a similar economic situation to Europe and the US, the Australian Real Estate market has managed to avoid the housing crash that these other regions have experienced. This may be due in part to the Reserve Bank of Australia’s intense regulation of interest rates. Housing prices doubled between 2004 and 2009 in many of Australia’s major cities, including Melbourne, Adelaide, and Brisbane. Another factor contributing to the stability of the market has been overseas investment, particularly from China. The relative stability of Australia’s housing market makes it an intriguing option for potential investors at home and abroad.

Taking a Closer Look at the Market

Australians looking for a safe area to invest during economic uncertainty will want to take a close look at the housing market. Some areas are doing better than others, which is why it’s always a good idea to examine the market’s most recent behavior. Overall, the real estate investment sector grew at a rate of 16.6% during the first half of 2012, but this is down from a rise of 32.9% during the same period in 2011. Growth is slowing, making research essential to finding a sound deal. This slowdown has made real estate more affordable for new investors. At the moment, residential investment is a popular course of action for many, with commercial properties more expensive and harder to come by.

Choosing an Area to Invest In

To get started with choosing residential real estate to invest in, it’s best to narrow your search down by location. Listings sites like Homesales provide a comprehensive view of the residential properties currently on the market in each region. Although houses along the Gold Coast and Victoria were hot property a few years ago, growth in this region has stalled. Many experts are recommending taking a look at fast-growing suburban areas of major cities to find a sound investment, such as the St. Kilda and Albert Park neighbourhoods of Melbourne. Other good areas to consider in 2013 include Perth and Adelaide, which are both in the midst of a population boom. Perth in particular is experiencing strong growth, with its population expected to increase at a rate of 116% through 2056. Don’t hesitate to talk to experts in Australian Real Estate as another form of resource before making decisions.

Benefits of Investing in Australian Real Estate Real Estate

In comparison to other forms of investment, real estate involves less risk and numerous benefits. Owning an asset such as a home means that you have ultimate control over your property, with the ability to buy or sell it when you wish. Unlike other forms of investment, property can also provide steady rental income, and a way to build equity. While the stock market can bottom out overnight and leave investors with nothing, housing prices move at a slower pace and tend to appreciate over time despite temporary setbacks. Furthermore, owning property can help investors hedge against inflation, because prices tend to increase at greater rates than the rate of inflation.

Although the market isn’t booming as it was a decade ago, investing in Australian property can still be a good way to build equity, protect your portfolio, and provide stability for your family. Taking the time to research market trends can help you make the most financially savvy decision.

For those considering an investment you may like or previous article on mortgages or if your not considering investing you can look at our earlier articles on improving your own home.

 

***Photos thanks to marragem & mike cogh***

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