What’s the point of spending more money than you ever would on any other product in your life, when you haven’t studied and understood the underlying basics of the place you will be living or investing in?
In Australia there are more than 9 million private homes to place a population of nearly 23 million according to the latest Australian Bureau of Statistics Census in 2011. This implies, there’s approximately 2.6 people residing per household.
Property investment in Australia is a practical and logical field in which a multitude of interconnected factors are at work to make changes in property markets.
If the people had a median weekly household income on $1, 234? what would happen
- Shopping = $250
- Travel = $100
- Entertainment = $100
- Miscellaneous = $300
This leaves roughly $450 a week for the property, which is the median monthly mortgage repayments in Australia as of 2011.
How much can this actually enable the average Australian to buy?
Based on borrowing calculators and being generous, estimates are much less than $200,000, which means a hefty deposit and plenty of saving. This shows you should know and understand the market you’re entering, or you may be building or buying a product which no one can actually afford.
- The economics of the market such as what do people do for income?
- Are they stable and safe industries?
- Is there a lot of wealth in the region?
- Will the inhabitants retire and wish to move elsewhere?
- How many people live per family?
- Links to public transport like buses, trains and airport?
- Local amenities such as entertainment, educational and leisure facilities?
- Authorities spending to boost amenity and efficiencies?
- Surplus of available properties available on the market for sale or rent?
- Without the above-mentioned examples and several more, how can you be certain the property
- Investment truly have demand long into the future and will be secure?