These coming months may surge and bring more of an upward movement into the property market and perhaps the further drop in interest rates will bring new life to the pool of investors too? We'll be watching the market and keeping you up to date of any radical movements.
One thing we recognise however; is that the stars are aligning and now may be just the right time to consider a house and land build, especially considering the Australian property demand is growing and supply is currently at a low.
At June 2011, the WA population reached nearly 2.35 million (10% of the total Australian population) and it grew at a rate of 2.4% (55,800 people) for the year - the fastest growing state within Australia for the period. Over the past 5 years the population has increased by 2.7% - a slightly greater increase demonstrating accelerated growth over the last decade or so. (Reference: Census 2011 data http://www.abs.gov.au)
For the last year, most of the growth occurred in the outer Perth fringe, within the shires of Wanneroo, Stirling and Rockingham. We also saw a fair amount of growth in Joondalup, the Swan and Armadale shires with no shire showing a decline in population growth.
With population growth comes higher housing demand.
According to Ken Raiss, Chan & Naylor Accountants, some of the key drivers contributing to the rise in housing demand include:
- Retirement of the baby boomer generation and the widening skills gap left behind require further skilled talent to replenish skills and the tax base, which will inevitably come from abroad;
- The wealth and opportunity offered by Australia, which attracts skilled migrants from neighbouring countries each year;
- The steady entry of five million Generation Y's into the market, which, according to projections by the Australian Bureau of Statistics, will raise the demand for housing by 15% on the previous generation, as more attempt to edge away from the family home;
- A diminishing amount of available land for new housing, as people flock to city hubs;
- A lack of government initiatives to ensure Australia has an adequate housing supply; and (Reference: http://propertyupdate.com.au/now-is-the-time-for-hesitant-property-inves...)
And with higher housing demand comes demand for higher living standards.
As noted above, the Generation Y's are more independent and driven than ever, wanting to reach their Australian dream of owning their own home and enjoying lifestyle luxuries while they're at it.
However some are envisioning this first home as the home they will stay in for years to come, and raise their kids in, and therefore waiting for the right house to come along before they venture into the property market for the first time. By doing this, their Australian dream may come at a heftier price as the entry prices increase and housing values continue to creep. We need to ensure our Generation Y's are educated in property and approach their home purchasing strategically. By purchasing a first home that is suitable to be rented out at a later date, they would not only generate income, but set themselves up to purchase a more desirable home with all the lifestyle luxuries in later stages, using this first home as security to purchase the second.
At Investor Assist, we understand every person has their own objectives and goals in securing their future in property and our Property Investment Specialists are here to help you develop or add value to your strategy. As referenced by Ken Raiss in his article 'Now is the time for hesitant property investors to make a move', "Property is the biggest asset most people will own, and so they need to surround themselves with professionals who can offer advice in making considered and informed decisions".
Take these market trends and findings and turn them into a strategy that will benefit you. It can all start by contacting a Property Investment Specialist today.
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 circumstances.