Good News for Australia’s Property Markets

September 10th, 2013

Regardless of who wins the upcoming federal election, there’s plenty of good news for Australia’s property markets.

A strong economy – Australia hasn’t experienced a recession in 20 years and another one is unlikely in the near future. The RBA states that exports will increase and Australia’s economy will become stronger.

A growing population – The Australian population rose to almost 400,000 in 2012, which is good for the economy.

A wealthy nation – Australians are the richest people in the world. According to the Credit Suisse 2012 Global Wealth Report, Australia’s average wealth per adult is US$194,000. Over 1.5 million Australians are in the top 1% of the world’s wealthiest individuals.

Good management of household finances – Most households are saving money. Others are paying off credit card debts and mortgages to save on interest payments. Rising home values and stock prices have also increased the wealth of households. This could in turn increase borrowing and get more people into the property market.

Low unemployment – The unemployment rate remains steady at 5.7%. Job security makes people more positive about spending and investing.

Low inflation rate – This allows the RBA to maintain low interest rates or to reduce them further for stimulating the economy.

Low interest rates – This enables homeowners to quickly pay off their mortgages.

Affordable housing – Homes are becoming more affordable. The property market is at its strongest in the last 20 years.

Returning buyer confidence – The Westpac-Melbourne Institute measure of confidence shows that consumer confidence is returning to the property market.

Bad news around the world subsides – The US, Chinese and European economies are getting stronger.

Source:http://www.propertyobserver.com.au/economy/10-reasons-why-the-property-market-outlook-is-good-whatever-the-election-result-michael-yardney/2013082264470/Page-1?utm_campaign=ourobservers%3Aadviceandanalysisforreaders&utm_medium=aida&utm_source=po