Australia, a strong free-market democracy, has recorded some very impressive economic progress unmarred by recession for more than twenty years.
We are blessed with abundant natural resources, and an independent bureaucracy, all of which have facilitated robust entrepreneurial development.
Australia continues to be an attractive destination for investment due to its long term stability.
Even though government debt has been rising since the global financial crisis, it remains substantially lower than in most other advanced economies.
New citizens to this fantastic country are driving the real estate boom.
The total permanent migration programme outcome for 2015–16 was 189,770 places and the main country by % were India 21.2” china 15.3% and the united Kingdom at 10%.
128,550 places were delivered in the Skill stream.
57,400 places were delivered in the Family stream
308 places were delivered in the Special Eligibility stream.
Our Federal government knows how important immigration is to this country.
As a rough rule of thumb, property investor(foreign or domestic) confidence is a pretty good indicator of how well the market is judging Australia`s economy.
Are we witnessing boom time real estate peaks in Australia, especially in Sydney and Melbourne like we witnessed in 2013 ?
A survey of property analysts shows most are predicting solid growth in the price of houses in 2017.
It’s a slightly different storyline when we come to apartments, as well as all property in “slower” cities like Perth and Darwin where there are solid projections of a stall in prices.
The last four very strong years, have pushed prices in Sydney and Melbourne by 67 per cent and 46 per cent respectively
A few Sydney buyers agents are also claiming to have had mad scrambles for property in mid December.
And for the first time in this sites existence we will mention…drum roll…Tasmania.
Just briefly though..
There is the property market of Hobart vs the rest of Tasmania.
Something about Hobart is attracting people there and the main demographic is not retirees either.
I was told there is no way I would manage to segue (smoothly ?)to the worlds rarest animal, the Tasmanian tiger, but who could pass up a chance of living in Tasmania and drinking Tassie tiger Ale..whilst investing in new property on the mainland through Ample property Solutions!
Anyway..
The top income tax rate in the land of OZ is 45 percent, and the flat corporate tax rate is 30 percent.
Overseas analysts like the Bank of Montreal chief economist Doug Porter, have been calling Oz “the Lucky Country” for its impressive ability to grow through thick and thin.
“Australia has not been in a recession for more than 25 years now, a world record,” Porter wrote in a recent client note.
That’s right doomsayers, the last time Australia had a recession, Vanilla Ice(remember him?) was topping the charts and the Soviet Union was still a year away from falling apart.
From the start of the century, Australia has averaged around 3 per cent economic growth per year, compared to 1.9 per cent in Canada and 1.8 per cent in the U.S., Porter noted
In the current low interest rate environment, banks feel less pressured by the monthly decisions made by the Reserve Bank of Australia. In 2017 it’s feasible that they will continue to restrict lending by raising rates, particularly for investors.
Yet the RBA is likely to keep interest rates stable or perhaps even reduce rates early next year, due to other economic factors such as the surprise economic slow down we saw in the September quarter.
High demand is here to stay
In 2016 the REA Group Property Demand Index reached the highest level recorded.
While this was partly due to a drop in the number of properties listed for sale, a surge in the number of people looking at properties was a key driver.
While demand is high nationally, conditions vary across the country. New South Wales and Tasmania are both incredibly in-demand markets, while Western Australia and Northern Territory are seeing much lower levels of demand.
We’ll see this trend continue into next year.
Let us see how quality of life effected our city rating.
Sydney ranked fourth on the list of targeted cities behind London, New York and Paris, while Melbourne ranked sixth.
Sydney ranked fourth on the list of targeted cities behind London, New York and Paris, while Melbourne ranked sixth.
And lets not forget Brisbane as it recovers well from the post-mining boom.
A new report released by the Real Estate Institute of Queensland said average house prices in December last year reached $632,000, about six per cent higher than 12 months ago.
Dwelling prices shot up by 4.1% in Brisbane over the 12 months to October 2016, CoreLogic data indicates.
Outside Brisbane, suburbs on the coast of Queensland are performing favourably.The Sunshine Coast also surpassed Brisbane in terms of auction clearance rates.
House prices in Brisbane have now risen 14.2 per cent in about five years and family homes with four bedrooms, two bathrooms and a lock up garage have being snatched up.
Property agency CBRE figures show $US407 billion ($561.4 billion) of property deals struck worldwide during the first half of 2015, up 14 per cent.
Australia was the fifth-most-popular market, with offshore investors snapping up $US10.3 billion worth of sales.
Sydney ranked fourth on the list of targeted cities.
Rounding this weeks blog post up we can come to several quick conclusions.
The main one is..Australia is one of the safest countries to invest in for local and overseas investors.
But, like anything, you need to be able to spot trends and know when the time is right, and when a location is right.
So unless you have the time and energy, and skill, to research the markets day in day out, that leaves future investors in a small dilemma.
Or does it ?
Why not speak to one of our team at Ample Property Services about how and why, we can help people like yourself , get into the property market the safe way and the right way.
This is our business, and we are proud of the level of skill and commitment our staff can bring to the table.
Contact us today for an obligation free chat.
Or
Why not come to our next seminar ?
Thursday -30th March-Kirribilli Club Lavender Bay- The Power Of Research When Investing – Seminar in North Sydney 7.00 pm.