One of the world’s largest real estate firms, CBRE, has given five very good reasons why “Australian real estate represents a compelling investment”. Aside from this, many other benefits are to be found in the Australian real estate market, which means that it’s a great time to consider your options and invest. Here are some of the reasons why you should consider investing in the Australian real estate market.
- CBRE said Australian real estate has provided an average return of 9.5% per annum over the past decade – significantly higher than the average home loan interest rate during that period.
- Rental vacancy rates are below 1% in some cities. When supply is low, demand is high, which translates into “robust rent growth”.
- Australia’s population is forecast to grow 14% between 2021-2030, which would be the “highest amongst leading economies”. More people would mean more demand for real estate.
- Australia has a “strong” and “resilient” economy, which makes it a good place to invest.
- Local real estate is relatively easy to sell if you decide you want to cash out. CBRE said Australia ranks sixth in the world on the dollar value of property transactions.
How to Decide if Investing in the Australian Real Estate Market Is Right for You?
Investing in the Australian real estate market can be a great opportunity for those who have the funds and the knowledge necessary. However, it’s important to remember that investing in any market involves risk, and the Australian real estate market is no exception. You should always do your due diligence before making an investment. Consider the following factors to help decide if investing in the Australian real estate market is right for you:
- Your financial situation: How much money do you have to invest? Is it enough to cover the costs associated with investing in the Australian real estate market?
- Your risk tolerance: Are you comfortable with taking on the risks associated with investing in the real estate market?
- Your investment goals: Do you want to invest for the short-term or the long-term? Are you looking for capital appreciation or cash flow?
- Your knowledge: Do you have the knowledge and experience necessary to make wise investment decisions in the Australian real estate market?
If you’d like more solid direction on your investment options, contact Peel Finance Brokers. We can provide you with the advice and guidance you need to make the best decision for your financial future.
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.