Property Investment Australia

Talk of an impending property market crash, of the negative impact of rising interest rates and on supply outstripping demand leading to a slump in the state of property investment in Australia has been grossly overemphasized and exaggerated according to a series of property industry experts Amberlamb can reveal.

The president of the Real Estate Institute of Western Australia for one believes that the Perth property market has strong room for continued growth based on an increase in demand for property for sale and rent for example, and according to Australian Property Monitors research director Louis Christopher, the rental rates across many Australian cities are rising so fast that property investors who were reluctant to buy into property investment in Australia are once again examining the market for profitability potential.

The fact of the matter is that so many have been frightened away from the property market in Australia that the number of new housing units coming to completion in cities such as Sydney are way below the rate at which the population is growing creating a situation where demand is exceeding supply and rental rates are shooting up.  Property investors who can manage to achieve a strong yield based on their financing of property investments in Australia might like to consider locations such as Brisbane and Melbourne too where the situation is all too similar.

Perth leads the way when it comes to demand outstripping supply and the rate at which rents are going up - often in Perth there are two properties for sale and up to ten active buyers looking.  It’s the same with rental property; with every single property available for rent there are at least three people in the market for the house or apartment.  This situation is set to continue for two very solid reasons.  Firstly there is truth in the fact that property prices in Australia have surged ahead of the affordability curve and fewer people can afford to buy meaning more people are looking to rent...this creates demand for an investor.  The second factor was as previously mentioned the issue that no one is building, renovating, restoring or even planning enough property to meet the constantly growing demand for property in Australia.  Naturally enough with this restriction on supply coupling up with a continued and continuous surge in demand for a place to live an investor has the exact perfect climate for profitability.

Unfortunately profiting from investment property in Australia (or anywhere else for that matter) isn’t quite as straight forward as ‘just’ supply and demand.  As stated prices for real estate in Australia are already considered to be too high meaning an investor buying now may have to wait up to 5 years to see any form of decent capital appreciation.  Also anyone who commits their own capital to a property purchase will have to wait a long time to release that sum of money.  Those who are likely to fare the best from this surge in demand and restriction in supply are those who have already made a property investment purchase in Australia or those who can finance a substantial portion of their purchase at a low enough interest rate that repayments do not exceed the rental income they derive from the purchase.

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