Reasons Why Property Prices Won’t Fall in a Hurry
In an article for the website Property Update, Michael Yardney sheds light on few reasons why Australian property prices may remain perennially high (well, almost perennially!).
Let us take a look
- Cities with greater urban demography and gentrification have higher house prices and we have a majority of our population living in urban zones.
- People do not mind paying more for living near the urbanised zones and the government’s initiative towards strengthening construction efforts in these areas mean that prices will only become higher.
- Our dwellings are made of better quality materials and being sturdier they attract the glances of investors more.
- Collectively, we are a wealthier nation than most of our peers and having taken care of the GFC better than others we are in a better position to buy.
- Legislations centred on negative gearing (tax concessions) imply that buying property pays and this is not a small incentive.
You can read the original article here.
I think we are homeowners at heart. There is no denying the fact given that Australians have highest percentage of home ownership worldwide. We have had a phenomenal run over the last two years. We cannot expect things to continue at such bullish phase but mellowing down property prices and growth patterns will still be enough to give us ample capital gains if we select our properties carefully.