You’ve probably seen the media explain lately that the real estate market is too expensive, and the supply of real estate in the market exceeds the demand of potential buyers, leading to less real estate sales, and those who sell, sell cheaper than buyers, sellers. would. I love it.
In general, probably, it is true. By “general” I mean when you look at the real estate market as a whole, from the very top to the market of the first home buyer. In Australia, this “common” market is overflowing with buyers looking for a family home or owner-occupied house. This market is very different from the real estate investment market.
There is no doubt that the value of the luxury property market in Melbourne has now plummeted. We have seen that the level of liquidation at weekend auctions is below average, and the property that is sold, often at private auctions, sells at about 20% cheaper than what they sold there.
However, the real estate investment market continues to be supported by a growing population. At the same time, as the local population grows, the demand for rental housing increases, if only because first-time people are in need of housing. Usually they rent, albeit temporarily, until they buy or build their own house.
This means that the real estate investment market remains active even when the top segment of the market falls.
The property that is suitable for this investment real estate market is usually a newly built home with four bedrooms and two brick garages. New estates in Melbourne and Sydney, and even relocation to growing regional centres in Victoria and NSW, are benefiting from the release of land on which such property can be built and where tenants can move.
Is it likely that the value of investment real estate in residential real estate will remain stable? As cities are projected to grow in large cities for the next 20 to 30 years and the associated population growth, this market will continue to grow. Real estate, which can now distract you from the central business district, will soon be nearby and in some cases large urban centers. Improved infrastructure, such as motorways and railways, reduces distances and real estate is even better.
To choose the right property in the right area of this developing region, you will need the advice of a real estate investment expert. Dynamic 8 Property Investment has experience and knowledge in the real estate investment market.