Australian property: ripe for international investors.

Written by Chris Nicolas
16th October 2009
The international property market in recent years has been unstable, vulnerable to weakening economies and irresponsible banking systems. Since the Global Financial Crisis (GFC) many developed economies have fallen victim heading into recession with property prices crashing. Australia has defied the odds being the amongst the few developed countries to experience genuine economic growth through this turbulent period.
The Australian property market is well positioned to overide the full impact of the GFC and avoid the path that the US and other formerly competetive property markets have recently experienced. Unlike the US, Australia is experiencing an undersupply of property, the financial system does not have non-recourse loans and has stricter credit policies, unemployment rate has recently decreased from 5.8% to 5.7%,(as opposed to the official predicted 8.5%) and the Australian dollar is on its way up.
With the federal government’s stimulus grant for first-home buyers coming to an end on 31 December 2009 and interest rates set to re-calibrate as a result of a speedy and evidently strong economic recovery, many potential first—home buyers are likely to change their preference back towards renting. This is great news for property investors; with demand easing, prices may become more negotiable, coupled with increasing rent and investment returns.



A recent report by mortgage insurer QBE LMI, which was researched by BIS Shrapnel, has provided a housing outlook for 2010-2012 in Australia. The result suggests that overall, Australian capital city property is set to grow between 12-23% from June 2009 to June 2012 with Adelaide predicted to outperform the nation with 23% growth.
Now is a great time to buy property in Adelaide with unprecedented government investment in infrastructure creating thousands of jobs and having a massive impact on the future property values in regenerated areas.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997