Compared to other western European countries and The United States, Australia’s property market seems to have held up pretty well. In 2009, there has also been an increase in some property prices in some regions.
The Australian property market has been influenced by many factors. These factors include an underlying demand and supply and more variable interest rate borrowing. Stricter Government regulations and policies stop people taking on mortgages knowing they will not be able to keep up with the repayments.
Due to these rules there are less repossessions on the market as in other countries and prices remain stable both in cities and in surrounding suburbs. The market for more up market properties, topping the 2 million Australian dollar mark, are also in demand and new developments are on the horizon to meet the demand for these as well.
There is also a demand for housing in Australia from foreign nationals either wanting to immigrate to the country or, indeed, buy real estate that is involved in the tourism industry. More people visit Australia every year, so the demand for rental apartments or homes is always in demand. Any investor, who looks into these properties properly can make a tidy rental income, all the while the property is going up in value.
Australia has also seen an ongoing structural shift in household numbers towards fewer occupants per dwelling. Because of this, demand for smaller properties (for one or two people) is also increasing.
Financial assistance is also being given to first time buyers which has had a dramatic impact on real estate up to the 600.000 dollar mark. Loans are more affordable with banks offering more variable interest rate loans.
Australia is still a fairly safe bet for investors and with more small businesses spring up all over the country, more and more over sea investors are investing in commercial properties throughout the country.
For over sea buyers purchasing real estate in Australia is relatively straight forward. You must first obtain permission from the Government Review Board but once received the process is fairly simple.
Whatever region of Australia you decide to invest in, it is important to choose your agent carefully. Try and find an agent who knows the area well as their knowledge of the area can be invaluable. Most Australian real estate agents are specialised in their field and can offer you advice on both purchasing, selling and the legal side of real estate investing.
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