Property investors are fortunate as a myriad of indicators are around us to provide a better picture of the true happenings in a local property market. One of these key indicators is the job market.
Blogger: Dean Berman, 37 Property Group
What is the best thing about working...is it the satisfaction you get from accomplishing an end result... or is it that great feeling when you know you helped your colleague understand more about the subject at hand...or is it simply the pay check at the end of the week or fortnight?...Yeah, it's probably the pay check...down to the pub...
We work to earn. We earn to live. We live to learn. Property investors are fortunate as a myriad of indicators are around us to provide a better picture of the true happenings in a local property market. One of these key indicators is the job market.
The Australian Bureau of Statistics (ABS) is the peak statistics body in Australia analysing the greater economy and it's various sub-sectors. They broadly categorise the jobs market into 2 key categories.
Full-time employment is the first category, defined as working more than 35 hours in the reference week.
Part-time employment is the second category, defined as working less than 35 hours in the reference week.
Job statistics help property investors understand 4 fundamental points:
• Are people in the area working?
• How long are they working?
• Where are they working?
• Will there be growth into the future for jobs in the local area?
Think about it, if you can answer these questions you're in a position to understand how long workers are willing to travel to and from housing, where is the ideal location for housing, what services employees will need around the housing and jobs hub, what transport requirements are needed and will the area need to expand etc...become picasos paintbrush with this information and you'll be on your way to understanding the relationship between the jobs market and property investing.
The ABS Australian job statistics recently released portrayed a picture of 11.5927 million people employed either full or part time. In the same time in 2012 this number was 11.4839 million. In 2011 this number was 11.3893 million. In 2010 this number was 11.0919 million. In theory jobs in Australia have grown continuously over the last few years.
In NSW 3.663 million people are employed, which has gradually increased by 58,200 people over the year. In Victoria 2.8863 million people are employed, increasing by 26,500 over the year. In Queensland 2.3454 million people are employed, which decreased by 100 people over the year. In WA 1.3113 million people are employed, which increased by 24,700 people over the year.
The purpose of this very broad market information helps snapshot where growth is actually occurring throughout the country. Clearly NSW, Victoria and WA have performed well over the year. It's interesting if you look at RP Data's dwelling total returns over the last year as Sydney experienced in excess of 8.5% and in excess of 10.6%, while Melbourne was the countries worst performer at 4.1%.
As can be seen by this total return discrepancy, job market change is not a simple be all and end all analysis method to show you how to make money in property. It is however part of a bigger bag of indicators, which will help you on your road to riches...next round on me.
About Dean Berman
Dean Berman is a lover of property and Director of 37 Property Group, a property investment company and buyers agency focused on helping clients amass substantial property portfolios. Dean is a licensed Real Estate Agent.
His goal for 37 Property Group is to implement his research knowledge and investment fundamentals studied in a Bachelor of Property Economics and Diploma of Financial Planning to help clients become truly wealthy through passive income and long-term growth.
He understands the busy lives of modern Australians and provides a service which is efficient, individualised and incorporates a professional and fun atmosphere. Surrounding 37 Property Group is a mixture of highly skilled professionals to provide convenience and smooth assistance in the wealth building process.
For more information on 37 Property Group http://37propertygroup.com.au
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