Australian property growing fast on global scale
Owners of investment property in Australia could be excited by the recent survey released by Fitch Ratings, which has established that the country has extremely high prices for real estate on a global scale and are expected to continue growing during 2014.
The report, entitled 'Global Housing and Mortgage Outlook', contrasted the affordability of properties from a range of nations across the globe, comparing values on three separate criteria - house price/income ratios, house price/GDP per capita, and house price/rent.
Australia ranked highly on all three levels, as the market was supported by continued economic growth. This is expected to continue well into the new year, which could be great news for anyone interested in selling their properties in the near future.
The survey cited improved affordability and a potential undersupply of housing options across the nation as some of the reasons for this development. The forecast for the national increase was 4 per cent, which is expected to be driven by a number of economic factors.
Furthermore, mortgage lending is predicted to increase over the next year. There will be a growth in activity in the real estate industry, with investors and existing homeowners expected to remain the main borrowers across the nation.
Unfortunately, it seems that first home buyers will continue to fall in numbers as home prices continue to rise. This could be a great opportunity for those interested in renting out their properties to secure some income from their investment real estate in the short term.
Sydney, Melbourne and Perth were specifically highlighted as regions that will undergo an increase in property values, as these capital cities continue to grow in the face the projected population boom.
This will also influence wages and income, with house prices increasing faster than the amount of money people are earning across the nation, adding to the complicated situation many first home buyers will find themselves in.
Overall, now could be a great time for property investors to secure new residential property in Australia. With the market shifting towards continued growth and a potential lack of housing supply, this opportunity to secure property in one of Australia's growing capital cities could be a great move for the future.