All the signs are pointing towards a steady upswing in the property market.. Will you be among those who take full advantage of the buoyant conditions ahead?

Confidence is fast coming back into the property market, with BIS Shrapnel chief economist Frank Gelber is quoted in BRW* as saying that it is moving into a four-year upswing period that will “wax and wane” along the way before the next boom begins.

What this means is that a property crash is not expected in Australia, naturally giving confidence to property owners and investors through maintaining overall stability and their household wealth.

The key issues supporting property prices are:

• The affordability of housing, which is the best it has been for a decade;
• Rising rents, which has obvious appeal for investors;
• Unemployment is likely to peak at well under the 8.5% forecast in the May Federal Budget;
• The undersupply of housing, with new housing starts not keeping pace with demand, and Sydney in particular falling further and further behind.

ANZ’s Paul Braddick is quoted in the same article as saying that the growing housing deficit could reach 200,000 by next year, setting the scene for a future housing boom. That’s the equivalent of all the housing stock in Canberra and Darwin!

What all of this means is that property owners in Australia are extremely well placed, and the fundamentals are there to drive property prices steadily upwards in the years ahead. When the housing shortage is factored in alongside rising rents, this is an environment that has strong appeal for investors.

Property investors position for upswing. Are you one of them?
As we’ve said before, this is a once in a lifetime recovery and upswing, that you have be part of, so don’t let the opportunity pass you by.

If you would like to learn more and discuss how McCarthy Group can assist you, click here.

* BRW Flagship edition, July 30 – September 2, 2009