Australia, as well as Canada seems to have weathered the economic crisis fairly well. Thanks to tighter lending regulations and more land available to build new homes, Australia did not see the ‘boom’ which many other countries experienced in 2004 – 2006.
However, professional opinions are split as to whether 2010 will see an increase or a fall in prices. The majority of financial specialists in Australia seem to agree that real estate prices will decrease by between five and 10 % next year and an increase in real estate prices will not be evident until at least 2011.
Unfortunately, debt is at an all time high in Australia, and buyers will decrease as individuals simply cannot afford to get into more debt. Employment, real estate price stability and the global economy are the major factors that will also affect the Australian real estate market.
Throughout Australia, unemployment rates are increasing yearly. Due to the global economy crisis several businesses are playing safe and many full time workers have been changed to part time thus saving the company on wages, tax and health care costs. Redundancies will also rise if the economy does not pick up.
The Australian real estate market, throughout 2009, managed to maintain solid ground. If interest rates and repossessions are kept to a minimum then modest increases in real estate prices should be seen in a couple of years.
The Australian banks seem to be working with their clients to help bring back the economy and are allowing customers to keep hold of their homes. If banks hold large numbers of overvalued repossessions then the market will undoubtedably suffer.
Although wary, foreign buyers are still evident. Like any investments, real estate has its upsides and downsides but in Australia, extra taxes and charges associated with owning real estate are kept fairly low.
Many international investors are investing in real estate that is linked with the tourism industry and are seeing, not only a healthy rental income but also a good return on their investment over the years.
Investment from international parties is essential to any countries economy. Due to this, Australia has made buying real estate fairly simple. Even though agreement from the Australian Government has to be sought before buying after this the process is fairly straightforward.
Whether you are buying residential real estate or commercial real estate to start a small enterprise, Australia will undoubtedably ride the storm for the next few years and will prove to be a good country to invest in for either Australian nationals or international investors.
Please see our main site for more resources on investing in the Australian Real Estate market and rainbow beach property and real estate in rainbow beach
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