2014: A Positive Year for Property Investment

The real estate market is not always stable nor can it be easily predicted, but many find investing in property to be a good way to make money. While various economists and experts in the field cannot come to a clear consensus on what the future will bring, all of the evidence seems to support that this year, there will be many positives to be had for property investors. This means that this will be a good year to invest and turn over a great profit.

Year for Property Investment

Where We’ve Been

To better understand the future of the real estate market, we must first take a look back and make sense of the past. There were a lot of doom and gloom predictions for both the Australian and the worldwide economy last year that spoke of major crashes and decreases in economic value. Some top economists predicted that America, the European Banking System, China and Australia would all fall into economic ruin and cause massive property deficits.

Thankfully, none of those predictions came to pass. Although the state of the economy wasn’t ideal, there were a number of improvements that were made over the past year. The economy of Australia did grow at a rate of about 2.3 per cent and interest rates hit an all-time low of 2.5 per cent. In addition, inflation remained fairly low and property values rose by an average of 9.8 per cent, especially in major, capital cities.

All of these figures seem to indicate that the trend is pushing the economy upward—and in the right direction.

Present Growth

With the positive trends of last year being carried over into this year, it can be easily inferred that now is a good time to be a property investor. The entire world is working as one to recover its economy, finally starting to revive after the effects of the Global Financial Crisis (GFC). In addition, our own economy has improved drastically. Specifically, the mining boom’s yield is now in the production phase, increasing exports and boosting the overall economy and the Australian dollar’s value. This is always good news for property investors as the status of the whole economy affects how people will buy and sell land.

In addition to economic growth, the population is on the rise as well. Just last year, about 400,000 new people were added to our nation’s population count, increasing by 1.8 per cent. Of these, many were immigrants, thus increasing the workforce. These same people who work will also pay taxes, forge households and most importantly, buy property.

Low is Good

Some things are on the increase, but having certain measures at a low is a good thing for the economy as well. In Australia, inflation is low, which is good news for both consumers and bank owners who can use them to help sell better loans.

Interest rates are also at a historical low, which is great news for those who are looking to invest in a property at minimal cost or home owners who would like to pay off a mortgage as soon as possible. Moreover, interest rates are expected to fall even further according to some top economists, which would make life even easier for property investors.

Country of Prosperity

According to Credit Suisse’s annual report on global wealth, Australia is the wealthiest country on the planet, as evidenced by the high median amount of money per household. The fact that the average household is financially successful means that they have income to spend on housing. The relatively high affordability of housing helps feed into this principle as well.

The real estate market is just beginning to expand. Despite some claims of being in a bubble, there is much vibrancy in the market that will continue well into this year. In addition, the Australian stock market received gains higher than they have been since 2009. This is another good reflection of the prosperity in our country right now and that there are much more positives than negatives in the market and in the economy.

Time to Invest

With almost all measures of an economy’s success boding well and on the rise, now is the perfect time to consider investing in property or making the next venture. The new year looks bright for many who are considering on investing but considering the key areas is important as well.

Real estate in Geraldton is booming, making it a hot spot for investing and living. To learn more about how to secure your property here, call (08) 9301 4445.