Property Market Predictions For 2010 In Australia
Similar to other countries, Australia, is also struggling with regards to its property market in the coming year 2010. Business analysts are not arriving on a consensus. The majority is predicting that Australia’s property market forecast for the 2010 will drop more than 10-20%. The minority, on the other hand, are predicting that it will increase five percent or even more.
Employment will be one of the determining factors that will affect the 2010 Australia property market. Therefore, there will be a probability that the market will struggle due to the fact that only the people with enough money for a deposit can afford the newly constructed houses. Due to this, the Reserve Bank of Australia has slashed interest rates up to a massive three percent since September 2008 lowering it to 4.25%. Australia’s other major banks were forced to follow.
If employment is the determining factor of the Australian real estate market, then job prospects will decide the real estate price tags. Experts say that the present 4.5% unemployment rate will soar to as high as 8% in 2010. Now, if those joblessness levels are to be understood, then real estate prices would begin to drop.
In 2010, there will be four important factors that will influence the Australian real estate market. As odd as it is, supply and demand are out of the list.
Debt – it’s the most difficult {issue that Australian real estate will have to face. This is because debt levels are at record breaking high. For people to afford new houses, they will have to take on extra debt, but unfortunately, they can’t. As a result, house prices won’t rise.~The most difficult factor that the Australian Real Estate market will have to face is debt. People wanting to buy new houses will have to take on extra debt which unfortunately they cannot do. Because of this house prices will not rise.}
Jobs – this is also a serious problem to the Australian real estate market in 2010. Statistics show that employment dropped to 44,000 in December 2008 and part time employment improved by 42,800 which means unemployment has increased by 1.200. These facts show that home owners will face a hard time paying their debts.
World Economy – this will prove to be another major factor that will affect Australian property market. As we all know, the USA, Japan and European nations are undergoing a recession and the big player, China, is experiencing a slowdown. This will affect every country, all over the world, and Australia will not be spared.
Affordability – this is the resulting dilemma of the unemployment issues. More unemployment means people will have trouble affording monthly outgoings. And the property will follow.
property market should hold until the second half of next year.~The Australian Property Market, should hold until the second half of next year, although it is predicted to be a generally weak 2010.}
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Is Australia A Good Investment?
The Australian real estate market, although experiencing its own troubles, seems to have weathered the crisis fairly well. Although a little wary, investors are still investing in both residential and commercial properties throughout Australia.
Compared to the property market in the United States, investing in property in Australia seems a safer bet. There is far more variable interest rate borrowing available and unlike America, mortgages are not handed out to unqualified people unable to meet their mortgage repayments.
Despite the current turmoil being experienced on a global footing, many properties in key areas in Australia are continuing to hold strong. Repossessions are at a low so no more damage is done by a glut of empty houses on the market. Overall people trying to sell property in Australia are facing a sunnier situation than those in The USA.
Properties around the coastal areas will always be in demand as the majority of the population live in these cities and suburbs. With more and more people visiting these areas each year a demand in rental accommodation has too seen an increase.
Investors from both home and abroad are investing in holiday homes or apartments that they rent out when not in use by themselves. If investors do there homework properly and purchase a property in the right location then a good rental income can be obtained.
Cities like Perth, Sydney and Melbourne are seeing an increase in demand for properties over the 2 million mark. New developers are struggling to meet the demand and plans for more developments are on the horizon.
As not everyone wants to, or can afford to, buy by the coastal areas, real estate prices in suburbs remain strong and ripple outwards suburb by suburb. Experienced investors can still find well priced real estate with room for price expansion in lots of these suburbs if looked into properly.
Purchasing property in Australia is fairly straight forward for people living abroad. The first step is to obtain permission from the Foreign Investment Review Board that you are eligible to purchase property in Australia. This is an simple process yet can sometimes be a long process so best planned ahead.
After this permission has been received buying real estate is very easy. Real Estate agents in Australia are highly trained in their area and can offer advice on all aspects of purchasing property. Some agents actually live in the place that they are selling so have invaluable knowledge of the area.
Porperty In Hunter Valley offer professional advice on purchasing real estate in the Hunter Valley region of Australia
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