Category: Australian Property

Australian Property Investors Won’t Invest in 2009

Potential Australian property investors have been delaying purchases in the country thanks to the Australian government’s grant scheme for first time buyers.

According to a recent poll, around three quarters of Australian real estate investors have said that they are waiting until the first home owners scheme expires in December before they invest in any more property.

The major reason cited is that the home owners grant has increase competition significantly meaning the market is crowded and house prices are being artificially boosted. Because of this, many property investors are getting their finances in order and waiting until the market becomes less crowded. Most of the real estate investors have said they are planning to buy property in Australia again in either 2010 or 2011.

Changes to Australian Visas

Overseas property investors who are looking to purchase properties or real estate in Australia may be boosted by a change in the Visa rules. From the 1st July 2009, holders of class 410 visas will now be able to work in Australia without restriction. Previously, holders of class 410 visas were restricted to working 20 hours per week only.

Visas issued up until the end of June will still have the restriction attached to them however if the holder reapplies for the visa and it is granted, they will no longer have the work-time restriction.

Focus on Melbourne Property Investment

Figures released by the Australian Bureau of Statistics earlier this year have shown that Melbourne’s population has increased by 49,000 in the 2005/2006. To put that figure a different way, around 1,000 people each week come to the city to live. These figures make it one of the fastest growing cities in Australia.

But what has this influx of people done to property prices? Is it worth investing in the city? The population growth means that demand is strong and this pushes up property prices. It has been reported that in the more desirable areas of the city, demand for housing is outstripping supply. If the current influx of people continues, it looks likely that there will be no change in the near future, and this will see house prices increasing rapidly.

Australia’s market not expected to recover in 2007

Property analysts in Australia have said they do not believe that the national housing market will see a recovery this year. Home buyers and investors alike have been troubled by the three interest rate rises which occurred last year and the market for properties and real estate is not expected to recover for at least a year.

Although property is still fairly high, it means there will be some bargains to be picked up this year. In the long term, Australia could be a fantastic opportunity for investment, as long as you are prepared to hold onto your property until the market recovers and begines to bounce back. With the gap between average disposable income and required income to buy a first home increasing steadily, the rental market is booming, again an excellent sign for investors.