Sub prime meltdown, stock market crash, superannuation dives. The global financial crisis looms over us and it seems every time you look in the papers or turn on the television there seems to be more bad news and reasons why you cannot prosper, but you can. In 2001/02 Australia had its biggest ever property boom. Some say the parties over, I say they are wrong.
Back in 01/02 the doubling and in some cases trebling of many residential property prices is attributed to a couple of major factors. Firstly a lowering in interest rates made borrowing cheaper. Secondly the then government introduced the $7,000 first home owners grant. Once again interest rates are falling and the government has just announced the doubling of the first home owners grant on existing dwellings to $14,000 and $21,000 on new dwellings. Right now there are other factors which I believe will push property prices even higher. The share market is predicted to be in trouble for some time to come. Investors however do not just stop investing, and you can bet they will not be parking their funds in the banks for low interest and highly taxed returns.
In the year ending June 2008 Australia built 43,000 fewer dwellings than required. If this trend continues Australia will start experiencing a major undersupply. Well located residential properties are now experiencing low vacancy rates which in turn is putting upward pressure on rents, coupled with some excellent tax incentives for investors. Right now the more well informed and sophisticated investors are snapping up these great opportunities.
Using the old adage, “buy at the bottom” has always been a great wealth builder as you beat the herd before they jump on the bandwagon and once again push property prices up. No I do not have a crystal ball so all we can go on are the facts and in my mind all signs point to right now being one of the best opportunities that most of us will ever see to build significant wealth through Australian residential property.
This is an excerpt from my new mini ebook “Million Dollar Strategies For Residential Property Investing In Australia” To claim your free copy please fill in your name and email in the form provided at the top right of this page and you will recieve an email directing you to the pdf version.
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