A Perfect Storm for Property Investment
On 1 October 2009, the population for Australia surpassed the 22 million mark. At the end of March 2009, Western Australia had 2,224,000 residents. According to the Australian Bureau of Statistics, Western Australia leads the population boom with the fastest growing population of all the states (3.1% for the 12 months ending 31 March 2009). The majority of this growth is from migration. Not since the post World War II boom of the 1950’s and 1960’s has Australia experienced this sort of rapid increase in people.
While many other industrialised nations are still in the grips of an unforgiving recession, Australian banks have held firm and our economy suffered no extended downturn. The Rudd government acted swiftly to prevent an economic slump by implementing a comprehensive stimulus package. The finance sector benefitted from a tightly regulated industry and our four main banks rank as some of the most stable in the world.
So what happens when the local population swells and the financial sector is in good shape? The demand for housing increases. Western Australia, and in Perth in particular, are still feeling the effects of the housing shortage from the last resources boom. Rentals are in short supply and affordable housing is becoming rare.
Now, more than ever, it makes sense to invest in property. A well-planned and executed property investment strategy can return 40%-50% profit to the investor. While this amount may seem fantastical, when demand and stability are taken into account, it’s easy to understand why these figures are possible. When you invest in property, you’re acquiring a solid asset that retains value despite economy, technology, or fashion. When you own land, your investment doesn’t vaporise in a tech cloud or disappear off a spreadsheet.
At Jardim Corporation, we’re looking forward to the next wave of property development. We predict the next 5 years will hold unrivalled opportunities for novice and seasoned investors alike. We expect to benefit directly from this perfect storm for property investment. If you’ve ever considered a property investment, now is the time to act on it.