Property investment in Australia

[TKline]

Well it has been six months since Poster "Paytown50" predicted dire things for the Australian Market...it is so easy to post gloom and then when it proves not to be to then fall away.

The Australian economy has survived the GFC best amongst the developed countries, for a number of reasons, including the strigent regulations of our banking system, a local resue package by the Government that was implemented quickly and yes our keen trading with the Chinese.

The property market since January 2008 did suffer a slide of 5-25% person, however these drops were very localised. From city to city, from regional area to regional area, from suburb to suburb, from value of property to value of property. The higher the price on the property the greater the drop.

There is certainly great buying for the long term investors who want safe investing in a Country that is not affected by extreme circumstances...

Australia only 'survived' the GFC because of unprecedented and reckless government debt funded stimulus aimed at keeping the bubble inflated. The bottom line is Australian property is a ponzi scheme of epic proportions. The writing is on the wall and there have been significant declines in recent months. Once the speculators realise capital gain is dead then the party if over and a crash bigger than Ireland or US is guaranteed.

 

[mortagage]

Interesting, but depressing info. But nonetheless helpful, Thanks.

 

[TKline]

Interesting, but depressing info. But nonetheless helpful, Thanks.

I don't see why it would be depressing. Housing will become more affordable. That has to be a good thing for everyone (except for the speculators who were gambling on ever increasing prices and hoarding property that could have been better used sheltering the population instead of being help empty for capital gains).

 

[mortagage]

When a country goes into economic freefall I think it can only be viewed as for the population in general.

 

[mortagage]

Ok so property prices will fall but the banks won't be lending - so first time buyers will have issues with getting mortgages whether or not the house prices are low.

 

[msa]

I completely agree with Ecky. I can back you up totally:
“Property investment in Australia
I'm surprised that Australia is barely mentioned here. I might sound biased but to me, Australia poses as a great place to invest in especially properties.
- Historically, property values have doubled every 7-10 years.
- Economically and politically it is stable.
- Migrants are moving into the country at an astounding rate annually (increase
demand).
- Currently facing a shortage of workforce to build more housing for the increasing
migrants (less supply, increase rent!!)
- Government provides a very friendly tax scheme to property investors.
Any other Australians in here, maybe you can back me up!“
**********************************************
I also completely agree with Damian George! :
"...I suppose experiences like that happen every where in the world, however it certainly doesn't stop us from investing and waiting for an unknown period of time for dollar values to drop 50 percent.
Forum readers an certainly come to the Gold Coast for a holiday where I have lived for 30 years, and have a fantastic experience, and view some of the best properties in the world."
**********************************************
Yes, I also agreed with the comments of many other writers in this forum, when they say: "Australian property is expensive!".
Of course it is all a reflection of the market, and the more attractive, the more costly it is, because of the demand and shortage of supply.

It is not by chance that Australia was recently named the best performer throughout 2010 in regard to the property market.
Thriving economic (also the least affected country during the "GFC").
Stable political situation, stable economic situation, resources boom, good employment stats, strong and stable banking system, shortage supply of property, ongoing increase of rents, overwhelming demand for housing to accommodate the increase of population growth (many new migrants from many parts of the world looking for a stable country/economy to settle with their families).
In average, in some major cities of Australia the value of property has been doubling every 7-10 years cycles. Some parts of Sydney (especially near the beaches and Harbour) and Melbourne (especially near the river and bay) where that growth stats has been higher over the last 25 years (for the 7-year cycles).
Australia is part of the "new world" that continues to attract new residents. Hence its ongoing development overall, unlike other parts of the world with unstable economies that are in decline for demand.
Above there are many of the reasons, in regard to the latest trend of attraction for Australian property, by investors especially from China, Singapore and Indonesia.

Also in November 2010, it wasn’t by chance that the United Nations Development Program ranked Australia's quality of life as the second best in the world (after Norway).
Yes, Norway has its good points. …But who wants to live 10 months in darkness and freezing conditions for the rest of their lives?
So after Norway, Australia was officially declared by UN as “the second best country in the world to live”. And for anyone lucky enough to live in Australia, that was no surprise!

I’ve lived in 3 different continents and I’ve travelled throughout the world a few times, and I’m able to assess all the different comparables. There is no doubt that Australia is a “treasure” country, and its residents are very lucky indeed!
It’s sunny and overall has good climate; good natural resources; beautiful and varied landscapes; easy-going people; good economy; peaceful and lots of freedom. All very enjoyable living conditions!
They’re many of the great reasons to attract the ongoing increase of the overall growth of numbers in a “chain-reaction” (population, employment, property market; economic stability; etc).
Also it was interesting to note from the stats revealed by UN, that the East Asia and Pacific regions had by far the strongest overall performance of any region over the past 40 years - twice the average worldwide progress.
That shows that the neighbouring regions close to Australia now are also progressing at a fast rate.
A very good sign to the future of Australia and our region.

 

[msa]

Australian property - High demand & low supply! Yes, from my experience in this market, the prices are high but the returns are higher in a few years!

:dito:
Australian property - High demand & low supply!
Yes, from my experience in this market, the prices are high but the returns are higher in just a few years!

For anyone willing to invest in the Australian property market, count with the high prices to buy! But also think about the overall returns for the money invested.
The rents are very high too!
From the stats of the previous 25 years, it is a fact that the value has been doubling in average every 7-10 years.

 

[msa]

"property prices in oz will rise another 5-10% next year as there is no rental property avaliable.

i have been raising my rental by 10% for the last 2 years and looking to do the same again"

********************************
Damian, I agree completely w/ your above comment!
Our rents were increased from 2010 to 2011 at a rate of 15.4%.
And surprisingly there was still an avalanche of enquiries and inspections to quickly secure the lease at those prices.
The reality is that there are too many people in demand for rental property in Sydney and there are not enough supply of rental property.
In Sydney's CBD is quite common to hear of cases that properties with 3 bedrooms are being rented to 9-to-12 people. It is amazing that 3-4 people will be prepared to share a bedroom paying high prices. And even living-rooms, enclosed balconies and garages are being rented as accommodation!
Initially it sounded unbelievable, but we've heard about it too many times, and we've seen rental advertising for balconies and sections of living-rooms.
The shortage of rental accommodation in Sydney is overwhelming but still there are too many people very keen to live and enjoy a very attractive city like Sydney, and don't care about the prices of rents.

 

[msa]

Wow, that's a huge increase.

That's the reality of Sydney's property and the weekly rental prices!
Last year that house was being leased for AUD$650/per week (which now it is equivalent to the US$).
This year that same house has a weekly rent of AUD$750, and there was a lot of demand for the lease. And even after the lease had been agreed with a tenant, we received offers from desperate tenants willing to pay more for the rent trying to secure the lease of the property.

That's true that Australian property (especially in Sydney, and close to the ocean) the costs are high to start investing, but then the rewards are also higher to make up for it.
There is no gain without pain!

 

[Damian George]

hhhmmmm

i think the australian property party is coming to an end.

I have sold my place in sydney and looking to sell in queensland as i have made more on the currency than the properties.

8%+ interest rates have taken their toll and i remind everyone that interest rates can go over 16-18% easily as inflation takes over and the economy slows

Good luck

Damian

 

[Wendell Zuchs]

There are lot of buyers in Australia. If you want to invest in Real estate, Australia is the best destination.

 

[shibaliks]

Property investors in Australia should think about this

Hi,

I am new to this forum and I have seen that a good discussion is going on about real estate matters in Australia. Even I want to have some Australian property myself, but I have just recovered from the real estate bubble. There can be many reasons behind that but that is not an issue. The real problem lies in how do we come out from this. I have seen some property investors have missed opportunity to utilize their properties because of wrong valuation. I will simply accuse some dishonest real estate agents who managed good profit out of that. While if the investors hire someone or some company having a good reputation in the market with a little higher rate, they may get the utmost benefit of their property.

Hiring buyers advocate may ends up with higher rate but it is trustworthy as they will sort out every problem regarding the property. Suppose any kind of legal dispute, capital gains tax calculations, stamp duty calculations when transferring property ownership based on the current or retrospective market value or even divorce or business dissolution will be taken care by the buyers advocate.

Regards,

 

[Damian George]

Strangely the Sydney morning herald stating that the top end prices are starting to fall as buyers dry up and auction rates tumble.

The Australian property Market is now living in fear of interest rates of 10% plus (therefore house prices need to rise by more than 10.1% to make money). Maybe if the Australian dollar exchange rate falls there is a chance that the market could continue to rally.

Too many questions for me time to run

 

[kaz101]

I've certainly noticed that in regional areas properties aren't selling at auction like they were. However down here on the South Coast it's winter and I was wondering whether that affects property sales? I know that in the UK more properties would go up for sale in spring and summer because it was thought that they would sell quicker since no-one wants to go out in winter.

Regards,
Karen

 

[CSQTownPlanner]

When it comes to the process of making a property investment and exiting from it, there are a few things that you must keep in mind.
• To become a successful investor you should be determined and flexible.
•
Good location also plays an important part while investing in a property. When you plan to buy or rent a property, the first thing that comes to mind is this is a place where someone is going to live.

• An investor should decide whether his investment goals are long term or short term.

• If you find foreclosure, property or HUD repossessions then you get a good amount of profit from the property.
• Take time to study the property. Take your time to become familiar with the property.

 

[CSQTownPlanner]

In my view Australian Property Market being a long term investment because the property prices high depends on massive and increasing amounts of immigration...

 

[DarrenG]

I also think that investment in Aus is a great investement. There are many beautiful places which attract many foreigners. I would not mind having a property in Aus

 

[Lysos]

Please note that non-residents can only buy new build property (i.e. never occupied) or land.

 

[DarrenG]

I am also seriously considering of investing in Australia. I believe this is a good investment

 

[DarrenG]

I believe property investment is always profitable in any stable country. Where you can make the difference is to choose the right location for the property