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“Safe Investing in the Global Financial Crisis”

 

Investing in Property During the Global Financial Crisis

With the Global Financial Crisis (GFC) still affecting the economies of the world it is probably a good time to sit down and ponder as to what is a good long term investment strategy for all of us here in Australia.

Australians predominately invest in either the property market or the share market. Australians love affair with property is well documents and in the past decade this love affair has extended into the share market with share ownership in Australia now being amongst the highest in the developed world.

With the GFC having significant impacts on both markets to varying degrees, let’s focus on the Australian property market and why it is our belief that there has never been a better time to buy investment properties in South East Queensland.

First and foremost are the current record lows with respect to interest rates. The current cash rate sits at 3.25% and, although increases are expected over the next 12-18 months, they will still be at all time lows when taking into consideration those experienced during the 1980’s and 1990’s. Low interest rates allow investment property owners to potentially repay their loans quicker and more easily than those taken out in the early part of the decade.

Second is the Federal Government’s current immigration scheme which is seeing record levels of skilled migration to Australia. The scheme is currently allowing approximately 200,000 people to migrate permanently to Australia each year. This migration level is expected to remain for many years which is placing pressure on housing availability across the country.

The Federal Government is aware of this and has recently expressed concern that we are not building enough housing for our current population growth. This will only mean good news for property prices in the future if availability is at a premium with quality properties hard to find.

This skilled overseas migration is further boosted by the continued interstate migrations that sees a further 1000 people a week move to Queensland, most of whom settle in the South-East corner of the state.

And thirdly is the robust nature of the Australian property market. With the Australian share market dropping in value by approximately 40% during the GFC, the Australian property market did not suffer the same fate.

This coupled with the equally robust nature of the Australian economy, means that the present time may represent a unique opportunity to enter the residential investment property market in South East Queensland.


Peter Morris
“Making Property Investing Easy!”
S.E.QLD. Investment Property

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