March 16th, 2010 | 
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Australia, along with Canada seems to have weathered the economic crisis relatively well. Thanks to tighter lending regulations and more land available to build new houses, Australia failed to experience the ‘boom’ which a lot of other countries saw between 2004 – 2006.
However, expert opinions are split as to whether 2010 will see an increase or a decrease in prices. The majority of financial experts in Australia seem to agree that real estate prices will decrease by between five and 10 % next year and a rise in real estate prices will not be evident until at least 2011.
Unfortunately, debt is at an all time high in Australia, and buyers will decrease as individuals simply cannot afford to get into more debt. Employment, real estate price stability and the global economy are the major factors that will also affect the Australian real estate market.
Throughout Australia, unemployment rates are increasing yearly. Due to the global economy crisis lots of businesses are playing safe and many full time employees have been changed to part time thus saving the company on wages, tax and health care expenses. Redundancies will also soar if the economy does not pick up.
The Australian real estate market, throughout 2009, managed to maintain solid ground. If interest rates and repossessions are kept to a minimum then modest rises in real estate prices should be seen in a few years.
The Australian banks seem to be working with their customers to help bring back the economy and are allowing customers to keep hold of their homes. If banks hold large numbers of overvalued repossessions then the market will undoubtedably suffer.
Although reserved, foreign buyers are still evident. Like any investments, real estate has its up’s and down’s but in Australia, extra taxes and charges associated with owning real estate are kept relatively low.
Lot’s of over sea investors are investing in real estate that is linked with the tourism industry and are seeing, not only a healthy rental income but also a great return on their investment over time.
Investment from over sea parties is essential to any countries economy. Due to this, Australia has made buying real estate relatively simple. Even though agreement from the Australian Government has to be sought prior to purchasing after this the process is relatively straightforward.
Whether you are investing in residential real estate or commercial real estate to start a small business, Australia will no doubt ride the storm for the next few years and will prove to be a good arena to invest in for either Australian nationals or foreign investors.
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