Gifts From Times Past
Parts of America and Europe may have the festive look and feel of Christmas but even with all that snow and quaintness, Australia is the gift that keeps on giving.
Did you know?
From the 1970s the Australian real estate market had a continuous, average price increases of around 3% p/a. Doesn’t sound like much but already the compound interest was looking good.
From the 1990’s to 2010, the pace picked up with prices rising by around 6+% p/a (sometimes up to 20%). That is very impressive compound interest.
What country can sustain that? Well, Australia isn’t doing such a bad job of it!
What’s Happening Now – Consumer Confidence
Consumer confidence is all important when it comes to the strength of our property market and according to Roy Morgan Research that confidence is up 5.3 points on this time last year. They report, “Australians are more positive about their personal finances over the next 12 months with 40% (up 3%) saying they expect their family to be ‘better off’ financially while only 16% (down 4%) expect to be ‘worse off’ financially”.
Property Market - 2013
According to Larry Schlesinger of Property Observer (and many other experts), property prices in capital cities are forecast to rise by between 4+% in 2013. Perth is expected to rise by 12%, Darwin by 14% and Sydney by just under 9%.
Australia V’s The Rest Of The World
While property prices seem to be on the rise again, the reality is that home prices have slipped back 5-10% in some markets since the heady days of the last boom. If this has happened on your doorstep (or in it) once you compare these figures to the 10-20% hit the UK took and the whopping 30 % hit the US suffered, things start to look positively rosy! Let’s not even talk about Greece and Spain.
Word has it that the American property market is finally beginning to pick up with September sales climbing 5.7%. Americans are buying new homes at the fastest pace in two years, so it would seem that the industry whose decline was at the heart of the GFC is tentatively bouncing back.
Sounds good? Well, no matter how positive the figures become, it'll be many years before the US, UK, Europe or just about anywhere else in the world will enjoy the property and economic success that Australians take for granted - in short, we are the economical envy of most, if not all, countries.
The Country That Keeps Giving
Strong employment figures, rising incomes and falling interest rates all make property increasingly affordable which can’t be a bad thing. For any kind of buyer, but especially for investors or people “buying up”, it’s positively party time.
A Happy Australian Christmas To You All
So as you drive off to visit your family up the coast, your holiday house down the coast or your local beach, river or pool these holidays, take a moment to give thanks for just how lucky the lucky country is.