It consumes us all this conversation. As Australians boast one of the highest rates of property ownership in the world, it’s easy to see why. And if you’re about to embark on buying your property you want some level of comfort that all will be good. Well, we think it will be. Some ups and downs definately but ultimately good, just as it’s proven to be in the past. And you’ve got to hold it – property isn’t a simple commodity to trade. It’s to high in value and the costs to enter and exit the market are a bit of a barrier.
As we’ve always said, different cities and regions in Australia are different. But the same key reasons underpin the property market in Australia – the only thing that changes is supply and demand across some sectors.
Michael Yardley posted an interesting blog this week and we thought it apt to share with you. He listed these reasons as to why the Australian property market won’t collapse.
- Robust population growth – we’re growing at a faster rate than any other country in the developed world.
- A healthy economy with solid employment prospects
- A sound banking system (yes!)
- A shortage of properties in some locations pushing up demand and providing good investor returns – particularly where we are – having the coastline on our doorstep will do that.
- Rising construction costs make new developments more expensive – hence tend to ‘fuel’ the value of established homes.
- A healthy level of household debt – we’re saving more and paying our mortgages.
- A culture of home ownership – seventy per cent of us own or are paying off our homes and we have high equity in our homes.
So remember, put it in perspective – of your own situation.
