A weakening Aussie dollar could be a real cause of merriment for the foreign investors. It might even bring the expats back to Australia. Patrick Stafford for the Property Observer writes that a bottoming out currency would mean more purchasing power for the foreign investors and they would not like to miss out on this opportunity of investment.
The Aussie dollar is presently trading at US96 cents. In a year, it is expecting to come down to 85% of the US dollar’s price in exchange rates.
The expected recovery of the American economy would mean the US dollar getting buoyant and in its wake it will weaken the Aussie dollar further. Thus, we might see a lot more money coming to Australia through tourism, but also into local property. Sydney of course is one of the main attractions for foreign investors.
Already, the auction clearance rates are throwing up pretty good numbers across the country. Sydney and Melbourne are doing particularly well, closing almost 15%-20% above the figure for April-May last year.
You can read the full article here.
The shift in demography is impacting the Australian property market like never before and it is worth studying the macroeconomic patterns pertaining to population, wealth of the nation, and age before making any sort of real estate decision. An article on the ‘Before It’s News’ website sheds light on few recent real estate trends.
Australia is closer to the US than any other country when it comes to the property market; its trends and its rising and falling sentiments. Having said this, Australia is faring a lot better because it has got its economic foundation firmly in place. Nicole Gurran for the BRW writes that the baby boomer housing bust which the US is facing might become the story of Australia too, albeit with a few marked differences.
The Federal budget did not read out any changes in Negative Gearing or Capital Gains tax, did not announce cuts for the housing sectors, proposed to help the baby boomers downsize and largely left Superannuation untouched. Phil Thomson for The Canberra Times says that the Federal budget has proposed (only proposed) a lot on the Superannuation reforms front; however anything may only be implemented once the legislation become full-fledged laws.
What can possibly match this great combination- high auction listings and equally high auction clearance rates? Not many things! Nicola Trotman for the Property Observer reports that 1,541 auctions are slated for this week. Though a trifle lower than the figure for the last week, this number is just as phenomenal. Compare it with 1,300 auctions recorded over the same week last year in Australia and you will get the difference.
Maneuvers of the market forces have produced what may be termed as the best time to invest in property. Experts feel that only the boom times prior to the meltdown was as conducive for investment in real estate. An article on the Real Estate Business suggests that the present environment is aiding investors and brokers alike.
