Are we heading to an Australian Crash?
The media has a lot of people running scared about the state of the Australian property market. I say it all the time when it comes to investing you never, ever let the media, friends or family influence what you are doing. Fact of the matter is if you're investing based on good solid property investment fundamentals and buying investment opportunities below CURRENT market value then you wont be putting yourself in a position to lose.
Let's take a look at the facts:
- Fact 1: Australia had an undersupply of housing to the tune of some 110,000 homes in mid 2010.
- Fact 2: Migration into Australia is still at high levels with 109,778 new permanent residents moving here between July-December 2009.
- Fact 3: Despite lending getting tougher banks are being forced to reform in favour of consumers (like abolishing exit fees) and non-bank lenders are paving the way for consumer reform.
- Fact 4: Demand is currently lagging which means builders and developers are struggling which in turn means that you've got the power to negotiate.
With the facts above you can make a pretty decent case for investing. Right now whilst its a buyers market if you can invest in property and hold you'll be laughing. That being said DO YOUR RESEARCH and only buy property with good solid fundamentals if you throw $1 million at a one bed apartment in Tawoomba well then you're just setting yourself up for failure!
Most importantly though – make your own decision. Don't just react to what you read or hear and if you have any questions or concerns give the team a call on +44 (0)207 923 6100.
Live with passion,
P.S. If you want to read the stats on immigration yourself you can download the latest Migration report off the Department of Immigration and Citizenship website.