This week, I have come across this article which may be of assistance in guiding people within Australia to better growth. Of course, it is best to avoid acting on media hype and property sales companies information. You should first understand why areas have potential, then still avoid people merely selling stuff of stock lists, limited to their own stock lists, promoting stock that makes them more money than other stock, and not disclosing what they make. Shame on them.
Price growth in Australia’s capital city housing markets will continue into 2015, according to Dr Andrew Wilson, Senior Economist at the Domain Group.
“Buyer confidence has been boosted with the Reserve Bank’s recent interest rate cut and we’ve seen a solid start to 2015 in most markets. We are expecting buyer activity to remain solid through the Autumn selling season and then moderate as we head into Spring,”
It seems the national median house price is forecast to increase 5% in 2015. Wilson expects Sydney and Brisbane to grow by 8% and 6% respectively while Melbourne, Adelaide and Hobart are likely to grow between 3 and 5%. Meanwhile, declining local economies spell fairly modest growth of around 2% for Darwin, Canberra and Perth.
Those that sit back on the fence thinking nothing will happen, like they have sat on the fence all their life are yet again expected to be left behind as prices move away from them.
If you had a 400,000 property, and it increases 5%, it is $20,000 you would have made, now imagine you did not have that house, you have now lost $20,000. Consider if you have a portfolio of just 5 properties, each worth 400k, you have lost $100,000 if they all increased 5% this coming year.
What is important though is seek advice, do not buy from a property marketing company (spruiker)! Engage someone to undertake thorough research on your behalf and engage someone to source a type and location and style of property that suits your plan, a plan to suit your goals and risk profile is so important.