Friday, November 23, 2007

The changing face of our property market

The changing face of our property market We like to keep you up to speed with the latest Market news, so here’s a recent article from realestate.com.au which will aid the astute property investor.

The recently released 2006 Census shows us that the way we live, who we live with and where we want to live is changing and to ensure that you own the type of property that will appreciate in value strongly during the next property cycle, it will be important to own the type of property that will remain in continuous strong demand by both owner occupiers and tenants.
Based on what has happened in the past – over the next property cycle some properties will increase in value 2 or 3 times more than other types of property. Wouldn't it be nice to own these properties?
One of the key drivers to the resurgence of our east coast property markets is our population growth and the 2006 Census reveals the big impact on population growth from overseas migration. There is a rising influx of permanent migrants, overseas students and people on working visas. As property investors, we need to keep an eye on where these people are settling because most are coming into the country with money and while they are often tenants for the first year or 2 here, many permanent residents buy their own home after being here two or three years.
The rise in Australia's population last year was the fastest growth since 1990. But, according to an analysis by Matusik Property Insights close to 500,000 migrants will call Australia home in the current financial year. Where are we going to put them? With a current shortage of both rental properties and owner accommodation in all our major cities our population growth is one of the factors that will sustain the next property cycle.
South Australia has worked hard to attract skilled settlers to Adelaide. Of the 756,000 people who had arrived since 2001 to stay in Australia for one year or more, 31% settled in Sydney, 24% in Melbourne, 11% in both Perth and Brisbane, 5% in Adelaide and 3% on the Gold Coast.
Despite what much of the media has been reporting, home ownership has remained relatively stable over the last decade at 70% of households, but an increasing proportion of households had a mortgage.
A statistic that didn't surprise me was that around one in eight Australians lives alone. This means 12% of our population or 1.8 million people live on their own and one-person households represented about 23% of all households in Australia. An interesting fact to know if you want to know what type of property will be in strong demand!
Karen Raffen, CEO
 
www.toop.com.au <http://www.toop.com.au>

 
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