Tuesday, 24 September 2013

#Media #WrapUp #Cautious #environment #property

The #news all over the net is describing a cautious environment. Sellers are cautious to put their properties on the market but why? This month we learn more about the nature of change and how caution with all its good intention has a lot to learn about the the truth behind the headlines.

Record Low interest rate - will continue to support a very generous environment for buyers looking to enter the market. While 40% of buyers remained investors looking to grow their portfolio, there is a lot of talk of speculating with investors looking to grow #SMSF. The lack of support from the government and government grants for first #home #buyers have deterred many entering the market for the first time. The follow article below suggest while the interest rate is record low, banks and buyers alike should remain caution. This would ensure the pace of growth is tempered and sustainable.


Reserve Bank warns against self-managed super funds investing in Australia's #property #market


#Retail continues correction and profit continues to adjust to a newer more frugal shopping mentality. The more they save, the money they will pay off on their mortgage. This means the economy will remain strong and defaulting rates will remain low.  This paints a very stable economic environment for property and the #real #estate industry.


End of a boom or the beginning of an growth era?

For all the fear of mining boom being over, China will continue to grow. As #China migrate from export led growth of industrial revolution to a more consumer led growth in their economy, Australia is in a perfect position to leverage on this opportunity through transitory focus towards a more agriculture led growth.

Australia has immense strength and know-how in agriculture business and by partnering with China, Australia can capitalise on its country brand for being "healthy and wholesome" and fuel the demand for fresh and wholesome produce craved by the expanding Chinese middle class.


The mining boom is tapering but another form of growth Australia continues to experience is the growth in population. This is particularly true of the urban growth through migration. More and more urbanites are working and earning more in urban centres such as Sydney and Melbourne. #Properties in these two major city centres are yielding higher rental growth because of the explosion in urban centre migration. The prices for properties both #commercial and #residential has been experience positive and steady growth for the last decade.


Decade of Decentralisation - is a government initiative that foster growth of regional economy through regional planning and turning regional areas into productive thriving economic centres. This is made possible with creating government administrative processing centres. Aside from agriculture, cultivating a growing government sector would appeal to younger workers to migrate away from overcrowded urban centres to regional areas.  This would also provide options of careers in various sector of administration, away from agricultural economy.


With all these different factors the Australian economy is underpinned with many strong foundations and growth opportunities. This makes a perfect selling environment for those interested to take their properties to market.


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