The Australian Real Estate Market in 2006

Perth in Western Australia is one city where real estate prices remain affordable and where demand for quality accommodation to buy and rent is increasing which is creating an exciting micro property investment market opportunity ripe for exploration in 2006.

The reason for Perth’s sudden popularity from a real estate perspective springs from the fact that the city is enjoying a period of economic advancement led by a vast improvement in employment prospects. Local residents in Perth are benefiting from better paying employment and an abundance of opportunity, and the city is attracting a steady flow of inward migration as job seekers move to the city to take up offers of employment.

Historically Perth’s real estate prices have lagged well behind those of Sydney and Melbourne for example, and the average home finance sought to purchase in Perth is around 30,000 Australian dollars less than the average mortgage taken out elsewhere in Australia. The lower priced accommodation is attracting more interest from investors from across Australia as well who are all seeking a housing market with legs left to run. Furthermore the real estate sector in and around Perth is enjoying interest from international real estate investors who can see the long term prospects available.

As demand for accommodation in Perth increases as the city welcomes new residents, so the prices being charged for rental housing are on the up as well. Anyone who purchases real estate to let out in Perth right now can cash in on this boom in rental rate rises and retain their property while the predicted period of property price growth develops.

Across the rest of Australia many first time home buyers have been temporarily priced out of the housing market as property prices have exceeded affordable levels. While the market readjusts over the short term there are fears that a rental accommodation crisis is looming in some of Australia’s most popular cities such as Brisbane and Sydney. This concern is of course leading to sharp increases in rental rates being charged by landlords who are well aware of how valuable a commodity they own.

While this is an unfortunate situation for those caught in the rental trap it is a perfect situation for an investor seeking immediate returns on real estate investments in Australia. Anyone who makes a real estate investment purchase in Australia with the intention to let out that property will not only make a strong income currently but they will continue to enjoy property price growth over the longer term as the market readjusts and begins to grow again in Australia in the medium term.

And finally, if you’re interested in the real estate market down under and are not an Australian citizen, overseas buyers are free to own real estate in Australia that has been granted permission for sale to foreign purchasers; and you can rest assured that the purchase process will be straightforward because it is so well regulated in Australia.

Australia Property For Sale

Australia mesmerizes property investors from all over the world due to a number of multiple factors. Though weather is the prime driver of demand for Australian property, the country has much more than the pleasant climate and sunshine throughout the year. On the weather front, it’s not the entire country that enjoys great weather throughout the year. For instance, summers can be really scorching in cities, like Melbourne and Perth. Fortunately, the summers don’t last for long and most of Australia is returns to a normal weather pattern fairly quickly.

This huge country has almost everything that a potential property investor is looking for. The natural beauty is magnified by thousands of pristine beaches, and lots of them are favourite jaunts for surfing and other aquatic-sports activities. Nature has also bestowed upon the country a colossal reserve of rainforests, constituting exquisite native flora and fauna. Some of these living beings are exclusive to Australia, and tourists just visit this country every year to have a glimpse of Koalas and Kangaroos, and plethora of other plants and animals.

Australia is one of the hottest emigration destinations partly because of the favourable sterling exchange rate, and mostly because of the identical English culture, language, and legal and business environment. Australia is a flourishing democracy, largely peaceful, and one of the hubs of global uranium deposits and trade. The thrust towards cleaner energy globally has pushed the demand for uranium at an all-time high, and Australia’s economy is bound to gain from this favourable trend.

The Australian property market offers maximum returns on investment due to a healthy and vibrant living standards offered by the country. The country has no dearth for emigrant jobs. In fact, there is a huge demand for English -speaking Brits in the healthcare as well as the hospitality sector. Besides, banking, retail, IT, accountancy, insurance, welders, plasterers, hairdressers, and agriculture are other areas where the British have an edge over the other hopeful emigrants.

Since most of the country’s population is settled along the coast, the obvious choice of real estate investment in Australia has to be the major Aussie cities, like Sydney, Melbourne, Brisbane, Perth, Adelaide, and Hobart. Actually, the choice of place has a lot to do with the choice of nature of property to be invested in. For instance, if the rental income is your preference, then the State of Queensland has to be your natural choice, but if you are looking for some agricultural land, then the rural areas along the major cities can be explored.

Though many experts feel that a property boom is on the wane in Australia after hitting peaks in the past couple of years, yet there is no reason why the British property speculator should not look for a wise real estate investment in a country that is projected as the future dream destination purely because of the vast resources at its disposal.

Currently, there is a tremendous demand for residential homes in all the major locations of Australia. In fact, the balance is in favour of demand, meaning thereby that the demand for residential homes in major cities has constantly outstripped the supply of quality homes. Therefore, you can tremendously gain through residential property in all of the major cities, either through rental income or just by short-term trading in these properties.