Wait any longer and you could miss out
Wait any longer and you could miss out
Posted on Monday, September 24 2012 at 2:42 PM
Hesitant property investors should buck up and buy before it’s too late, according to a national accounting and wealth advisory firm.
Chan Naylor director Ken Raiss says
there’s little chance of a major housing market downturn in Australia and
believes now is the time to invest.
“Potential investors sitting tight for a
bubble to pop could be waiting a long time,” Raiss warns.
“High living standards, low and controlled
interest rates, relatively high population growth, undersupply and a health
banking system are only a few reasons why buying property in Australia is an
attractive option for personal occupancy of investment.”
Despite market jitters in the wake of the
global financial crisis and sluggish price growth in the period since, Raiss
says values remained mostly steady and are back on a largely upward trend after
only “modest corrections within a cycle”.
And he predicts demand is about to boom.
There are numerous drivers contributing to
a rise in housing demand, including the retirement of baby boomers and the
widening skills gap, which will see a growth in migration numbers, he says.
Generation Y will also drive demand, with
the steady entry of five million of them into the market in coming years. The
Australian Bureau of Statistics says that’ll bump up housing demand by 15 per
cent more than the previous generation.
As Raiss points out, there’s also a
dwindling amount of available land for development in city hubs and governments
across the country aren’t adequately addressing the shortage supply.
The sum of these factors, as well as the
healthy state of the national economy, will keep the value of housing high.
Those younger buyers holding out for the
property of their dreams or a more confident marketplace run the risk of
missing out altogether, he says.
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