Real Estate

Thankfully Australia has managed to weather the economic downturn quite well. Along with Canada they have felt the ‘credit crunch’ allot less than other countries around the world. Due to stricter lending rules and more land available to build homes, Australia did not see the ‘Boom’ which other countries experienced in 2004 – 2006.

However, financial specialists tend to agree that property prices may well fall between 5 and 10% next and year and an increase in property prices will not be seen until at least 2011.

Inevitably, the Australian property market will be affected by four main factors. Employment, debt, global economy and house price stability. Debt is at an all time high and as the property market increases numbers of buyers will drop as they simply cannot afford to get into anymore debt.

Due to the global economy, unemployment rates may also increase. Local businesses are already saving on health care and taxes by cutting employees hours from full time to part time.

The Australian property market, throughout 2009, managed to maintain solid ground. If interest rates and repossessions are kept to a minimum then modest increases in property prices should be seen in a couple of years.

Thankfully, banks are working with customers, and to bring back the economy are allowing customers to keep their homes. Large amounts of overvalued repossessions, if held by the banks, will surely see the market fall.

Overall, Australia has ridden the storm well. Over sea buyers are still evident and investors, although reserved, are still purchasing both commercial and residential properties. Like any investment, real estate has its upsides and downsides but in Australia, additional taxes and fees associated with owning property are fairly low.

Foreign investment is important to any countries economy. Australia has therefore made purchasing property fairly straightforward. Although agreement has to be sought from the Australia Government, which can be timely but straightforward, but after that the process is fairly simple.

Whether you are buying residential properties or commercial properties, Australia will no doubt ride the storm for the next few years and will prove to be a good country to invest in.

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categories: real estate

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