Property value has always increased, mainly due to the increased worldwide demand for housing. The world population is teetering on the 9 billion mark, and all of these people need a roof over their heads. Property prices are affected by many factors, with location being a major influence.
The Australian property market
Land prices in Australia have enjoyed a steady rise since 2001, and land purchase is considered a prudent investment. Certain areas such as Sydney and Perth offer a higher rate of increase due to popularity. If one is looking for a house and land package in Perth, the investment should give a significant return. Many industry professionals say that there is no bubble to burst, and house prices will continue to steadily rise, as demand for housing increases. The late 1990’s and early 2000 saw a steady rise in Australian house prices, in relation to income and rents. This slowed gradually until 2012, when another surge in demand saw prices rise again. In June 2014, the IMF issued a report that stated Australia has the third highest house-price to income ration in the world.
Buying a plot of land
If one considers the continual rise in land value, buying a plot of land with a view to building a house, seems like an attractive proposition. Red Ink Home’s house and land package deals provide the ideal solution for the business entrepreneur who wants to make money from real estate development. They offer a comprehensive service that deals with every aspect of house construction, including land acquisition.
This has seen a bigger rise than rural land, due to the demand for housing in the cities. As the economy expands, more people are drawn to the cities as employment opportunities open up. In Sydney, Brisbane, and Perth, house prices have doubled since 2003, and the future looks stable, with an increased demand for housing in those cities.
The reasons behind the rise
There are several factors, including the limited release of government land, and the strong economy, which provides much needed income. Low interest is also a reason why more people are borrowing, as lower interest means lower repayments. There is also a greater availability of loans due to financial de-regulation, which allows more people to purchase their homes.
Increased foreign investment
In 2008, the Australian government introduced relaxed laws for foreigners to buy land, and as a result, foreign land investments rose by 30%. Under the new rules, temporary residents would be screened to see if they are eligible for property purchase. The policies were later amended to ensure that all foreign owned property contributed to the national housing stock. Foreigners who are temporarily staying in the country can purchase a house if it is for their personal use.
The Australian property market has remained healthy since the 1990’s and is a very attractive investment opportunity for the shrewd investor.