Boy has the Australian economy received some bad press lately.
You know what I mean…
Horror budget. Consumer confidence dropping. Unemployment high. Properties unaffordable. The property market is stalling.
But is it really so bad out there?
There is no doubt that there are some issues with our economy and that our property markets have taken a well deserved breather, but there’s still lot’s of good news if you care to look for it:
Here’s 9 reasons to be positive about our future:
1. Having risen solidly in 2013, property values have stabilised over the last few months, but the latest RPData stats show overall property Australian dwelling values rose 10.1% over the last 12 months.
2. Australia’s population rose by 396,000 or 1.7% last year, with net overseas migration accounting for 236,000. At this rate our population will increase by around 10% in the next 5 years.
3. Over 100,000 jobs have been created since the beginning of the year and unemployment is around 6.0% – not 6.5% as many were predicting.
4. Our economy is still the envy of most developed nations with GDP (economic growth) of 1.1 per cent for the March quarter.
5. If you invested in the stock market you may have earned 17% over the last year including dividends. This means most super funds are also performing well.
6. Interest rates are low and are likely to remain low for another year or so as the RBA hopes to stimulate the economy by encouraging consumer spending.
7. The average household wealth is higher than it’s been in a long time. We’ve been stashing our cash saving rather than spending and our homes are worth more, as are our super funds at a time when we’ve been thrifty.
8. Consumer confidence is slowly rising again
9. We’re still spending up according to the latest retail figures and that helps the economy go around.
As I see it there are more positives than negatives out there.[sam id=37 codes=’true’]
We live in a lucky country with a stable political environment (compared to many parts of the world), a sound banking system and the trends in the global economy suiting our economy.
And there’s lots more life in our capital city property markets driven by population growth, low interest rates, strong demand and rising consumer confidence. Sure growth will be lower this year than it was last year, but the type of double digit capital growth we had last year at a time of low inflation is unsustainable.
I don’t know about you, but I’m still putting my money into the property market.
It’s the old story: while the optimists and the pessimists argue whether the glass is half full or half empty, the pragmatists will drink the glass of water!
BY THE WAY…
If you’re looking for independent property investment advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat.
Or call us on 1300 20 30 30.
When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.
Subscribe & don’t miss a single episode of michael yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to michael yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.