Friday 25 November 2016

What lies ahead in Australia?











Are you willing to buy a house in Australia or wants to invest in property or you are thinking in future. Buying a house in Australia is not a big deal unless you are having heavy pockets currently, the property market in Australia is favorable but how it will react in few coming years or in 2020? What lies ahead for the property market? Buying in New South Wales, News Queensland, South Australia, Tasmania, and Victoria, Western Australia.

Almost anyone who owns real estate would give their second garage to know what will happen to prices in the prices in the future. Will they go up and if, so, by how much? Where will this happen, and when? What is the house and unit price outlook across Australia in 2020?

To give our Crystal Ball a solid foundation, statistical snapshot of prices and sales in all capital cities in February 2010. The data comprehended the comparative sale numbers and median sale prices from February 2014. Hopefully, this four-year snapshot will reveal trends that help us to forecast what lies ahead for Australia’s capital city housing markets. Well the reason we have seen such strong growth in Sydney and not in other markets is more because of overseas migration to Sydney, which has been fairly strong because of its job opportunities, because New South Wales migration away has been low since 2010 and also because there is shortfall in housing.    



 


Friday 18 November 2016

Property Demand Hits Record Level in Australia












"Demand for property in Australia is now at fever pitch, with rates continuing to reach record levels, further supporting house price growth". " While some experts were uncertain over whether a Trump win would see a rise in interest in Australian real estate internationally, Ms. Conisbee said Australia was considered a "safe haven".

The Index showed a 27.5 percent surge in Australian property demand over the year, with Queensland registering a 27.4 per cent rise. In the past month, alone demand for Queensland properties rose 7.3 percent overall, with both houses and units rising equally. LJ Hooker head of research Mathew Tiller said a Trump victory was positive for Australia as it made "investment here more attractive for large foreign developers and institutions as well as high net worth private buyers looking to purchase the residential property".

Property values in the US are likely to fall in the same way they did following Brexit. In uncertain markets, people don't like to buy. People in the US are likely to look to safe haven markets – Australia will be a beneficiary of this as it is considered to be one of the safest markets in the world,"
Therefore, it's a good time for smart investment as reckless and ignored investment can trap you but the your conscious mind can help you to invest smartly. Although, it is still not clear, what would be Trumph's tactics for his and other countries but one thing is very definite that his theories will infect the whole system of real estate.

Friday 11 November 2016

Real Estate








Real estate is funny. Historically, it's been one of the best ways to build wealth, yet it scares the pants off most people. Everyone has an uncle or cousin who "lost big" in one of the real-estate crashes, yet admit it: A part of you still wants to invest.

This index seeks to determine which of the 50 most populous U.S. metro markets were most likely to have provided strong returns for residential real-estate investors between early 2014 and early 2015. This index measures both appreciation and gross rents as a percentage of average purchase prices.

Within the dates studied by the index, let's look at the 10 biggest real estate winners.



1. Dallas

Dallas tops the list of real-estate markets over the period studied, exhibiting strong price appreciation, while remaining a market in which investors saw strong rents relative to property values. Investors in Dallas stood to earn an almost 20 percent unleveraged return for residential real-estate investments before expenses.



2. Denver

Falling closely behind Dallas, Denver takes the number-two spot, driven largely by the strongest appreciation in home values of any major market studied over the period. Residential real-estate prices increased a staggering 13.4 percent year over year across the Denver metro region.



3. Miami

Miami is one of three Florida markets on the top ten list, boasting an impressive 18.6 percent year-over-year return for investors.



4. Houston

Houston is the most populous city in the top 10 list, with more than 2.2 million residents. Investors on average saw a gross return of 18.5 percent over the past year.



5. Atlanta

Investors in the Atlanta market saw a 16.4 percent return over the past year, led by almost even gains in cash flow and appreciation.



6. Tampa, Fla.

Tampa Fla, probably best known for its football team, made the number six spot on our index, led by strong cash flow. Like its neighbor Atlanta, investors in Tampa saw a 16.4 percent return.



7. Detroit

Detroit has had an interesting real-estate past, and it's still possible to buy real estate for less than the cost of a used car. However, Detroit is also clearly climbing its way out of the pit, emerging as number seven on the list for overall return for investors, sporting a cool 16.2 percent return.

Sunday 6 November 2016

HOUSING BOOM REMARKING AUSTRALIA'S SOCIAL CLASS STRUCTURE

 
The persistent housing boom in Australia’s cities, especially Melbourne and Sydney, is often framed as an intergenerational clash in which younger generations are being priced out of the market by baby boomers. However, sociological theories of social class suggest parents’ wealth and social status will ultimately be passed onto their children anyway.
So, by focusing on intergenerational inequalities that will sooner or later be reversed, we are framing the housing affordability question the wrong way. At the same time, the impact of the housing boom is so deep that some long-established thoughts about social class may be no longer relevant.
The housing boom has blurred on hand boundaries between upper, middle and lower classes that applied to the baby boomers and previous generations. New social class boundaries and formations are being produced.
·        In the industrial city, the term “working class” was distinct from the experiences of low-income workers in manufacturing jobs. Yet in a post-industrial Australian city it makes more sense to talk about the “renting class”. Not all renters are deprived, and not all poor households are private renters. However, the correlation between the two is important and strengthening. The percentage of private renters in the total population is slowly but surely increasing – from 20.3% in 1981 to 23.4% in 2011.

·        More than just a status symbol, home ownership has become ever more central to the way most Australians accumulate wealth. About half of the homeowner's wealth is held in their own home. Each housing boom enriches them additional through tax-free capital gain on their homes.

·        The housing boom also generates work in the construction industry, which is the third-largest employer in Australia with more than one million workers. These are no longer working-class occupations, with most skillful jobs paying average weekly earnings of close to A$1,500. So, it is arguably the home-owner class that benefits most from each construction boom.

·        The housing elite is satisfied by the housing boom well beyond the capital gain on their own homes. Much of the enormous wealth of Australia’s elite is generated through the housing market – through investment, construction and financing of housing.
The deepening fusion between Australia’s housing system and its social class system creates a dangerous sequence. The further house prices grow, the more significant housing becomes as a determinant of social class. And when social class is ever more defined by the housing, people are willing to bid even higher to enter home ownership or the housing elite.




GOVERNMENT'S RESPONSIBILITIES FOR AUSTRALIANS RIGHT NOW

 
Local governments have both direct and indirect impacts in the terms of affordable housing. Direct involvement refers to the authentic provision of housing by local governments acting individually or in partnership with others. Indirect involvement refers to the role that local governments play in facilitating the provision of housing by others.
There is no obligation to meet international obligations within State and Territory legislation. Australian sub-national jurisdictions are not vital to house all their citizens adequately. Most Australian households are well housed but we have a growing shortfall of reasonably priced and available housing for our lowest income households, estimated by the National Housing Supply Council as 539,000 properties. This creates a big level of housing stress for low earnings households. The earlier Rudd and Gillard governments developed a new National Affordable Housing Agreement which was broader in scope but retained a narrow focus on welfare housing and did not address historic concerns over transparency and accountability and which does not deliver sufficient funding to States and Territories to address the long-term supply shortfall. They did however provide momentous additional funding in the areas of social housing provision, a new National Rental Affordability Scheme and new national partnership agreements on homelessness and remote Indigenous housing.

Against the backdrop of growing house prices since the mid-1990s, there has been important public debate around issues associated with housing affordability. In 2003 the Australian Government requested that the Productivity Commission undertake a query into First Home Ownership. ALGA's submission to the Inquiry clearly articulates local government's role in housing and its impact on residential building and development. The Commission's report (PDF) was published in March 2004.

At its meeting on 13, February 2004 Local Government and Planning Ministers met with members of the Housing Ministers' Conference. At this meeting, it was decided that housing affordability is a major national issue. Ministers agreed that local government and planning portfolios are vital stakeholders and partners in the development of affordable housing policies at Australian Government, State and Territory, and local government levels, and in the implementation of affordable housing projects. Alignment of strategic and policy development processes between the local government, planning, and housing portfolios would produce greater outcomes than an action by personage portfolios. To this end, Local Government and Planning Ministers agreed to again meet with Housing Ministers following the conclusion of the National Affordable Housing Project and the completion of the final report of the Productivity Commission.



Buy and Sell in South Australia





We can see the new overseas market for prime South Australia produce as a major spur to future real estate market. The Kemp real estate principal and joint winner of RIESA valuable Sir Robert Torrens award says buyers and sellers had several reasons to feel confident in South Australia market.

South Australia has some fantastic opportunities to grow and produce exports. There is a jobs spin off from such contracts, which goes straight into the real estate market .These are being driven mainly by seafood, our wines and dairy products. Ironically South Australia, naval and submarine contracts is also the reason to feel confident about the property market. Those contracts are going to fill some big holes in the economy for years to come as far as jobs go, the benefits will flow on directly into the real estate market and industry.

The lifestyle is attractive and will remain a key in a buoyant. It is one of the greatest places to live anywhere in Australia and probably the world , the future prospect of lifestyle is going to become even more important with aging populations ,especially in regard to retiree and aged housing demand .In few years down the line, agents may become a one-stop shop for property .