podcast

How the economy affects the property market

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Property markets, good or bad, are always driven by economic forces.

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So a healthy economy, I'll use an example at the moment; Melbourne for example, where there's been lots of reporting on closures of vey large manufacturing factories - QANTAS, Holden, et cetera - that's not a good time to be investing in Melbourne. If you fast forward a couple of years down the track when these factories are closed, there's going to be lots of people on the unemployment queue. And unless the local government authorities have some pretty tangible means of finding alternative employment, demand for accommodation in a market like that is going to diminish. It's understanding economic forces, usually things related to employment opportunities. If you've got a location that is, for example the economy is driven largely by tourism and the outlook for tourism is healthy, that is one piece of information to give you confidence about that particular market. And we could say the same about any industry.

Listen to other instalments of The Smart Property Investment Show:
Episode 73: Bad builders: how this investor bounced back
Episode 72: Policy changes to interest-only loans: what buyers need to know
Episode 71: How this 'stubborn' investor recognised a property lemon
Episode 70: How this investor complements each property and balances his portfolio
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
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