Australian house prices are expected to rise by as much as 20 per cent over the next three years, a new report has found.
According to mortgage insurer QBE LMI’s Australian Housing Outlook report, improving economic conditions are expected to facilitate strong house price growth in Sydney, Adelaide and Perth in particular.
According to QBE LMI these cities can expect their median house prices to rise by around 20 per cent.
More moderate growth is expected in Brisbane and Hobart, where affordability is not as strained and the dwelling deficiency not as great as in other capitals.
QBE LMI says Brisbane and Hobart should anticipate increases in median house prices of 15 and 13 per cent respectively.
The report bodes well for aspiring property buyers, confirming the strong prospects that property offers as an investment choice.
Of course, price growth potential will vary not only from city to city but also suburb to suburb, and of course property to property.
When considering this report, and reports like it, the most important thing to remember is that property is a long term investment, and holding on to a property for at least one property cycle – seven to 10 years – is the best way to realise the full potential of capital growth.
If you want to maximise your chances of capital growth – that is price growth – the best place to start is to get educated.
First time investors may be inexperienced, but what you lack in experience you can make up for with research. To strengthen your chances of purchasing a high growth property, read property and finance publications regularly, sign up for e-newsletters, go along to seminars, research the web… all of these activities will add to your knowledge base.
However don’t forgot to get out and do the hard years. Use property data and the theory you learn on the web and via other avenues as initial research. Remember, while all this information useful, it doesn’t necessarily reflect what’s happening in the market your targeting right now.
The real research work is undertaken in the field. There is no substitute for viewing properties, talking to agents, and unfortunately, getting knocked back on offers.
Good property purchases don’t just happen by chance. If you’re seeking to capitalise on the growth forecast in property prices, your property must have all the basics covered – particularly in terms of potential demand from tenants as well as future possible buyers.