If you’re searching for land for sale in prime real estate areas, it would be best to know some details about the housing landscape and buying process in the region. Doing so can help demystify the process for you and give you some keen insight into the potential spaces and journey that you will go through. Here are some interesting facts to take note of:
1. The recent pandemic will significantly affect affordability.
Australia has seen its fair share of issues with affordability on the housing market throughout the years, with rates going up to ten times the income of a prospective buyer. Now, with the economic downturn affecting real estate, those rates could go down to only around four times the salary. While that may spell trouble for some investments, those seeking out a home to purchase for themselves may be able to use this drop in prices to their advantage.
It should be noted that amidst the response to this crisis, time is still of the essence to snap up the best deal even as global recovery is expected to be slow. That is because foreign investors are expected to take a keen interest in Australian real estate while prices are lower and the region continues to perform relatively well in crisis response.
2. Homeownership is still projected to be dominated by older citizens.
Australia has been able to maintain relatively consistent rates throughout the years, with recent rates at 67%, just one percent below the number in the ‘70s. However, the demographic that mostly comprises of homeowners still primarily leans toward those above 55 years old. Because of changing tax provisions, salaries, and lifestyles, only around half of those from the ages of 25 to 55 are homeowners.
To properly factor in how this divide applies to your situation, you should consider certain factors to know if you are capable of buying a house. That includes figuring in your own income-to-debt ratio and knowing how sustainable it can be for you to purchase your own property.
3. Demand for rental properties still grows while supply stagnates.
If you’re looking into buying property as a long-term plan for income, it may bode well to know the market demands for good rentals. Research shows that in three decades leading up to today, low-income households increasingly seek out comfortable spaces to rent out, but there is still a shortage in the market.
Even as younger generations flourish, changing sentiments and short-term living preferences may benefit mostly those homeowners who are leasing out their property. According to these statistics, the majority of those seeking rental accommodations have been singles or childless couples, looking for core locations to settle in but only being catered to by a mere 3% of the private rental sector.
Knowing tidbits like these should give you a better feel of the market and the general state of housing in Australia. Doing so can help you make a more strategic purchase, whether you are looking for your own place to live in or simply investing in an asset to yield some profits over time.