AUSTRALIA’S REAL ESTATE MARKET: A PROVEN WINNER
Real estate investment in Australia continues to attract positive attention worldwide. The area’s famed coastline and internationally attractive cities remain extremely popular, with a domestic economy that is relatively immune to the challenges facing large parts of Asia and the United States. In fact, Australia’s real estate market is one of the few exceptions to an otherwise volatile situation, since prices are on the rise while the opposite is true in North America. These factors, combined with Australia’s longstanding appeal as a travel destination for Europeans, Asians, and Americans, make owning investment property a smart decision.
The Australian government recognizes these events, too, and does its part to preserve stability in the nation’s real estate market. Consider this policy another advantage, one that lessens the likelihood of speculation – the very behavior that created (and destroyed) the real estate bubble in the United States and large parts of Western Europe.
Bucking downward trends seems to be a key feature of Australia’s vibrant real estate market. For example, figures from 2010 indicate that average inflation-adjusted home prices in the third quarter of 2010 were up 9.4% year over year, compared with a 15.9% year on year increase in the first three months of the year. More impressive is the fact that Australia was the top performing real estate market for all of 2010.
Backed by low unemployment, a strong dollar and minimal inflation, Australia has a situation that is favorable for sustained growth. Compare these phenomena to, say, the United States, where currency depreciation – and the risk of major inflation – threaten to further erode American housing prices. And yet, Australia’s wise economic decision making provides a cushion from this sort of fallout; in turn, investors are eager to purchase real estate, as both a hedge against other developments and as a means of earning additional income.
Owning real estate in Australia is an opportunity to enjoy the nation’s acclaimed amenities, beloved attractions and ideal weather. At the same time, the economic rewards of investing in real estate in Australia are an invitation for people to have a stable investment in an area that is free of some the economic chaos plaguing the rest of the world. These strengths – and the long-term benefits of owning real estate – distinguish Australia as a proven source of personal comfort and financial satisfaction. By any standard, these attributes are a blueprint for success.
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Property Friends is a specialist Property Investment Strategist that provides solutions for people aspiring to financial independence, choices in retirement, or leaving a legacy. www.propertyfriends.com.au (03) 9758 5331