As the world economy flickers between economic boom and economic decline, the Australian property market continues to prosper in the face of economic adversity. Even though many other industries such as the mining industry have suffered setbacks in growth over the past few years, the property market continues to grow and Australian families continue to prosper in wealth. Among different cities, there are different economic forces that are driving up the property prices and fuelling the ‘sellers market’. Even though many of the top industry experts are predicting a property economic collapse in the near future, history tells us that even though there may be a blip over the short term, those that weather the storm will still gain profits from the long-term property investment yields.
State of the Australian property market.
Statistics released by the Australian Bureau of Statistics in June 2015 show the average increase in property prices across the major cities in Australia. These include:
Ways Australians have been benefiting from the property boom.
There are several factors that are contributing to the price rise of properties. Many believe that it is a result of speculation while others believe it is a result of growing demand to be in the most popular areas in Australia. Either way, the demand continues to drive up the property prices and is turning some families into instant millionaires while others have spotted the opportunities and have been quick to jump on the development bandwagon in the hope of reaping healthy profits and rewards and transcending the real estate bubble that industry analysts keep on predicting. These are occurring in the following ways.
Land ownership is the most economical way that value is being increased to Australian properties. People that are living on large blocks of land or on acreage are learning about the different ways they can profit from their current land ownership. Some have sought to manage the process themselves and undergo subdivision processes and sell off the other land for a profit. Others have sought to redevelop the property on the land and to sell individual properties such as units, apartments or townhouses on those properties. These methods are creating wealth through additional equity in these properties. This is subject to the demand that the property faces. There is a far higher demand in Australia’s main capital cities with Sydney leading the competitiveness for land space and property ownership. However, there are many other opportunities emerging across different Australian cities that appeal to different niche groups.
Cosmetic enhancements that boost the property price.
The other way most Australians have been increasing the value of their property is through cosmetic enhancements. Many Australians are in search of owning their dream home. And while the exterior of the property is important for them, the interior design is the aspect of the property that sells the dream. Interior design company Interior Secrets has observed people’s willingness to buy into their desire for luxury. This desire is spurring future homeowners to purchase properties at prices higher than the economic value as the speculative value of properties becomes more tangible. Interior design has become a big thing of late amongst Australians that have been doing DIY on their own properties. Even landlords are seeing the value that they can reap by making a few internal cosmetic enhancements and then having the rental properties appraised to increase the rental income. Some of the quick wins that Australians are finding when enhancing their home include:
Improving the amount of light and brightness that enters the homes and the rooms. This is accomplished by:
- Improving the window sizes, installing shutters and skylights.
- Installing smart technology in the home to bring it into the 21st
- Investing into the interior design elements such as wall paintings, art and furniture that can enhance the aesthetics of the property.
The Australian pricing bubble hasn’t exploded which means Australians still have the chance to live and sell their property dreams by improving their property value. While there is talk of people not being able to enter the market and that we are faced with a new generation of renters, it does create a new opportunity for homeowners and rental landlords alike. If you are an Australian who always dreamed of becoming a property millionaire, the time to act is now. 2015 and beyond is looking to favour landlords and homeowners. Be a part of that growing statistic!