Is Australian property a good investment?
Is Australian property a good investment?
Is Australian property a good investment? Today I discovered an article that provides a good analysis of some recent statistics and trends on whether or not investing in Australian property is worth the risk.
It provides a range of insights including:
- the higher clearance rates we are seeing are consistent with higher credit growth to come
- people are paying down debt faster so there is more credit availability despite capped aggregates
- so long as APRA maintains this discipline, property prices cannot rise like they used to, nor far above inflation, for any period of time
- the slow melt in Australian house prices largely as a function of two forces. One is credit conservatism in the populace limiting demand. The other is regulatory intervention backing that up
- at some point both national income and mining investment are going to drop more precipitously. That will mean rising unemployment and falling standards of living will pressure rents because more people live together
Here at Buyer Solutions, we recommend that every home buyer or investor consider a range of issues BEFORE selecting a property to purchase based on our comprehensive research process and risk analysis.
If you would like any more information about these topics, please contact Janet Spencer at Buyer Solutions + 61 418 101 146