Commercial Real Estate News : Where Aussies Should Invest?
Real estate investing can be tough. Especially when respected outlets like The Economist, investment bank UBS, and the International Monetary Fund (IMF) feel Australia’s housing market is still severely overvalued.
Perhaps a more telling measure of the strength of the housing market is the fact that despite misgivings from some quarters, demand remains strong. The Australian real estate market has seen strong house price increases. This, combined with a sharp rise in residential real estate purchases by foreign nationals leads some real estate professionals to believe now is the perfect time to invest.
If you evaluate market trends and stay up to date on the latest property news, you increase your chances of investing successfully.
What do the experts say?
After a bumpy ride in 2015, real estate investors are clamoring to know which way the wind will blow in 2016. Savvy investors are on the prowl for potential property deals. Data such as past buying patterns, news from the financial services sector, and real estate qld will help inform investor choices.
So, what do the real estate experts say about investing in 2016?
According to LJ Hooker CEO, Grant Harrod “There is great buying in the Gold Coast and in southeast Queensland, from the border up to Brisbane. The state government’s commitment to infrastructure means there are good opportunities for families to invest in the southwest growth corridor. The M5 widening, Westconnex and Badgerys Creek will all have a positive impact.”
John Symond of Aussie Home Loans offer his take on this year’s property market. “The best places to buy in 2016 will be inner-city suburbs of capital cities, close to transport hubs, workplaces and amenities. These locations should generate strong income for investors and capital growth for them and owner-occupiers.”
To understand how some real estate professionals have a bullish outlook it can help to understand why the property market is attractive to investors in the know.
2 great reasons to invest in 2016
Both local and overseas buyers are driving strong demand for residential property. Two of the primary reasons for this demand are:
A stable outlook: Australia’s real estate market is buttressed by steady economic growth, constant population growth, easy access to funding and low interest rates. This combined with stricter lending regulations than seen in the US prior to the collapse of that market’s real estate bubble.
Anticipated future demand: Australia’s increasing population and shrinking household size will create demand for more housing units. In fact, some experts predict the need for an additional 620,000 households before 2030. This will undoubtedly cause property prices to continue to rise.
These are just two of the main reasons you may wish to invest in Australian real estate. There are other reasons that may prompt you to get involved. In any case, the remaining question is where to invest.
The Top 5 Areas in Australia You Should Invest in Property in 2016
Based on available information, here are the top five areas in Australia to buy property.
Brisbane: The Brisbane property market has seen home prices increase by 3.8%. Most of the Brisbane property news has been favorable with investors confident they can find good investment opportunities. Some of the latest news Brisbane offers has property investors making strong returns. The final word on real estate Brisbane is upbeat. CoreLogic RP Data research director Tim Lawless called Brisbane a “market to watch”, saying, “Brisbane’s had what you would call a ‘sustainable’ rate of growth. However, it’s a market to watch as it could be one of the better-performing housing markets. It’s also quite early in its growth cycle.”
Sydney: This area has seen the biggest increase in home prices. Residential property prices have risen by 19.9% clearly indicating a strong property market. Although some pundits claim Sydney is cooling off, expect to see the growing population and shortage of accommodation cause investors to stay the course.
Melbourne: Home prices have risen 9.9% here and the property market is booming. The median rent is $420/wk and in 2015 house value growth was in the double digits.
Adelaide: The price of the average home has risen 3.5% in the Adelaide area. Rental demand is high. Adelaide’s investment potential is untapped as many investors are focused on more high-profile markets such as Sydney and Melbourne.
Canberra: Home prices in this market are up 4%. Also, according to the CoreLogic RP Data Home Value Index home values in TK Canberra are up 8.9% in the last 5 years due to economic growth and job growth.
Australia real estate remains severely unaffordable for average homebuyers, especially its five major metropolitan areas, which presents property investors with an opportunity.
If you want to learn more about investing in real estate, you can take a property management course and prepare to apply for your Certificate of Registration!