Michael Yardney shares 10 reasons why he's feeling positive about the Australia property market for 2014.
In 2013 we endured the longest election campaign and had three prime ministers, our economy grew at about 2.3% over the course of the year, cash rates remained low and the investment property market improved as property values rose. Here are the 10 reasons why Yardney thinks we should remain optimistic about the property market in Australia during 2014:
1. The world’s large economies are having a synchronized recovery. Fears are subsiding and the economy is looking ok since the Global Economic Crisis.
2. Australia’s economy is also in good shape. The mining boom moves from construction to production phase and our exports will increase, being helped by the lower Australian dollar.
3. Our population is growing strongly. 2013 saw a growth of 400,000 in population mostly from the 30 something age bracket, boosting our economy by working hard, paying taxes and buying properties for new families in the property market.
4. Australia’s inflation rate is low. this gives the Reserve Bank room to keep the rates low, making it a great time to get in the property investment market.
5. Interest rates are low and likely to remain so for a while. this encourages home buyers and investors into the property market.
6. Household finances are in sound shape. Average wealth rose as did equity with superannuation funds recording its strongest performance in 13 years
7. Housing affordability is high. HIA - Commonwealth Housing Affordability Index suggests affordability will improve over the year due to lower intrest rates and rising wages
8. Last year the Australian stock market recorded its biggest gains since 2009. this suggests that high-end properties espeically in Sydney and Melbourne are selling well again
9. The property market in Australia still has a lot of life left in it. Having bottomed in the middle of 2012, the property markets in Australia have now clawed back most of their losses of the previous 18 months. And investors looking to get set for the next stage of the property cycle will take advantage of the opportunities the property market is offering them
10. It’s much more fun being positive than negative.
DISCLAIMER: This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstance. Investor Assist Pty Ltd Builders Registration No. 13818.
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