Despite all of the turmoil of the global economic crisis over the past few years, it seems that there are finally some solid investment options on the horizon, with the current real estate climate perfect for those looking to take the plunge and buy their first home. The following is a brief look at why now is a good time to buy, and where the hottest areas in the country look to be over the next few years.
Rent is increasing
Due to a lack of available housing options in Australia at the moment, the cost of rent has been going up, as with limited places to live it has been easy for landlords to be able to increase the amount of money they are asking for their properties. So rather than just continue to pay increasingly higher rents for your place, now is the best time to jump ship from renting, and get yourself a place to call your own.
Housing prices are set to rise
According to the QBE LMI Australian Housing Outlook Report for 2011-2014, real estate prices across the country are set to rise over the coming years, mostly due to a shortage of housing in many urban centres. The QBE reports are unbiased and known to be extremely accurate, and clearly illustrate that current markets are perfect for those looking to buy their first home. The following are some of the major findings of the report.
- Sydney can expect to see a price growth of 19-20 per cent over the next few years, thanks mostly to the depletion of housing supply over recent years. As always, the beachside suburbs will be much sought after.
- Perth can expect to see similar growth to Sydney, and is forecast to see price growth in the range of 19-20 per cent. The main reason for the increase in Perth is the continued boom of the mining industry.
- Melbourne is predicted to see modest price growth in real estate over the next couple of years, with a 6 per cent increase on the cards. The reason the rate of growth forecast for Melbourne is less than in some other centres is due to the large amount of new dwellings constructed in Melbourne in recent years.
- Adelaide, Hobart and Canberra are all tipped to see 6-8 per cent price growth, and after having attracted thousands of new residents in recent years it seems that the flood of new residents to these three great cities may start to slow a little in the near future.
- Brisbane has emerged as one of the most desirable locations in the country and is predicted to continue being so, with a solid rate of growth at 16 per cent making Brisbane only just behind the leaders in terms of forecast price increases.
- Darwin looks set to develop even further in coming years, with mining in the Northern Territory guaranteed to be a factor. QBE predicts that Darwin will see a 17 per cent increase in real estate price growth, making this fantastic northern city an increasingly attractive investment option.
The QBE findings reflect what many people knew already, and that is that things are on the up as far as real estate in Australia goes. Whether you are interested in Adelaide, Hobart or Sunshine coast real estate, there has never been a better time to buy your first home than right now.