Over the last few years, Australia’s economic growth hasn’t been anything that’s worth talking about. Australian housing market, however, has made many investors very happy. A year to end-Quarter 3 2015 analysis reveals that house prices shot up by 11.4% across the eight chief capital cities of Australia. This ‘nominal’ rise can be seen as a 9.72% ‘real’ or inflation-adjusted rise.
This year to year increase, says the Australian Bureau of Statistics, (ABS) is the highest recorded since the second quarter of 2010. All, however, may not be good with Sydney real estate in particular and the Australian housing market in general. Let us dissect the residential property market and also find out that one major threat which may especially push Sydney further down a number of steps.
Moving into a new home is, without a doubt, one of the proudest and happiest moments in a person’s life. Moving in, however, is hardly the first day in the calendar of the home acquisition process. For this day to come, many things have to fall in place first. Buying a home can be a rewarding adventure but the process, in itself, is one which you have to be very diligent about. Each step of the way, there can be hidden traps waiting to give you a sucker punch.
Buying a home is one of our top dreams in life, but there are lots of sacrifices that go into the process. You do not become a homeowner unless you put in the hard work. While it can be an emotionally rewarding and a monetarily lucrative journey, there are traps in the way that you have to be beware of. Let us read in detail about how these pitfalls can set you back and how one in particular can destroy all the effort you have put in.
Nick Bendel writes an article for the Adviser where he says that the value of land has spiked phenomenally all across Sydney. The Harbour City has witnessed an increase of 19.6% in land value, taking the overall value to $1.34 trillion by the end of financial year 2014-15. That means the average Sydney homeowners are practically sitting on “golden lands”, so to speak.
An article on Your Investment Property says that 2015 was a year marked by falling rental growth. In Australia, the residential rents have spiked by only 0.3% over the course of 2015 and this is the slowest the rental rate has moved in a long time.
