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| Understanding The Australian Property Market |
| Written by Alanna Milletts |
| Sunday, 07 February 2010 08:51 |
|
Experts are struggling to know where the property market in Australia will head in 2010. Like other countries such as the United States, Canada and other European nations some experts predict a drop of more than 20% in property prices, whereas others predict an increase of between 5 and 8%.
Experts are struggling to know where the property market in Australia will head in 2010. Like other countries such as the United States, Canada and other European nations some experts predict a drop of more than 20% in property prices, whereas others predict an increase of between 5 and 8%. Probably the main determining factor in property prices will be employment. Only people who have a deposit will be able to purchase real estate and new builds if the unemployment rate continues to rise and some predict that unemployment rates will soar to as high as 8%, compared to 4.5% in 2008. To help people meet their mortgage repayments, the Australian Reserve Bank, back in 2008 cut interest rates by a massive 3% to help people meet their mortgage repayments and with strict Government lending rules now in place, the amount of mortgages given to unqualified people has been significantly reduced. These stricter lending rules have cut down on the amount of repossessions on the market which has enabled the property market to remain fairly stable throughout the last few years. The Australian Government has also started a new grant available for first time buyers to help them get onto the property ladder although, again, only beneficial if people can keep up the repayments on their mortgages. Throughout Australia, debt levels are at an all time high, with more people borrowing from credit cards and banks to keep their heads above water and for people to purchase new properties they will have to take on more debt, which unfortunately they can't. Many people throughout the country are having a hard time paying their debts and many have lost their full time work and are now working part time. In 2008 the amount of people in full time employment dropped by over 44 thousand and part time jobs increased by over 40 thousand. Other countries such as the USA, Japan and other European nations are all suffering a recession and even the big player, China has seen a significant slowdown. The world economy is another determining factor and as with other countries, Australia will not be spared. The property market in Australia, although predicted to be generally weak in 2010, should hold out fairly well in the first 6 months or so, however it will be the employment issues that will be the deciding factor as to where the property market heads in the next few years or so. About the Author: For more information on Rockhampton Property or Rockhampton Real Estate. Visit the experts Design Real Estate |