Australia, along with Canada seems to have weathered then economic downturn fairly well. Thanks to stricter lending rules and more land available to build new homes, Australia failed to see the ‘boom’ which many other countries experienced in 2004 – 2006.
However, expert opinions are divided as to whether 2010 will see an increase or a decrease in prices. The majority of financial specialists in Australia tend to agree that property prices will fall by between 5 and 10% next year and an increase in property prices will not be evident until at least 2011.
Four main factors will affect the Australian property market. These are debt, employment, global economy and house price stability. Unfortunately throughout Australia debt is at an all time high and the amount of buyers will drop as they cannot afford to get themselves into more debt.
Throughout Australia, unemployment rates are rising. Due to the global economy many businesses are playing safe and many full time employees have been changed to part time thus saving the company on wages, tax and health care expenses. Redundancies will also increase if the economy does not pick up.
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.
In all, Australia seems to have ridden the storm rather well. Both commercial and residential properties are still being bought by overseas buyers with the added bonus of additional taxes and fees being fairly low in the country for property owners.
Investment from foreign parties is important to any countries economy. Due to this, Australia has made purchasing property fairly simple. Even though agreement from the Australian Government has to be sought prior to purchasing after this the process is fairly straightforward.
So whether it is a commercial or residential property you are investing in, Australia is still a prime country for investment and will no doubt ride out the storm for the next year or so.
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