If you’ve been following my blogs you’ll know that I feel confident in long term prospects for our property markets which will be supported by the dual pillars of strong population growth and a nation where the people will become wealthier because of a strong economy and a resources boom.
With the recent release of Census Data everyone’s talking about what’s happening to our population.
Fact is despite strong population growth we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years we’ll need to replace close to 5 million baby boomers who will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report – The Global Professionals on the Move 2012.
Recruitment firm Hydrogen Group says Australia’s popularity was due to its lifestyle and standard of living, as well as the career opportunities presented by the mining boom.
Hydrogen managing director for Australia Ivan Jackson was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,” Mr Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
- Australia, which tied second with the UK.
- Hong Kong and
What’s happening to Australia’s population?
Australia’s population is estimated to be around 22, 50,000. You can get an updated figure by clicking the Australian Bureau of Statistics population click here.
Even thought population growth has eased since peaking back in 2008 when over 380,000 new people called Australia home, Australia’s population increased by around 1.4% last year which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration.
Population and more importantly, the change in population, is intrinsically linked with housing demand. To put it simply, more people means the need for more homes. And a prosperous nation means we can afford to buy or rent these homes.
So all this is great news for property investors with a long-term perspective.
So what should a property investor do?
If history repeats itself, as it surely will, while the majority of Australians will sit on the sidelines waiting for things to work themselves out, a group of successful investors will be looking for and buying investment opportunities created by the changes.
Then, when we look back in ten years time we’ll probably remember a decade of economic turmoil, but as always, we’ll wish we had bought more properties when they cost about 50% less when they were “on sale” 10 years earlier.
Of course…you need to buy the right type of property.
One that has a level of scarcity, meaning they will be in continuous strong demand by owner occupiers (to keep pushing up the value) and tenants (to help subsidise your mortgage); in the right location (one that has outperformed the long term averages), at the right time in the property cycle (that would be now in many states) and for the right price.
To become a successful investor you will need to surround yourself with a team of independent and unbiased professional advisors (not sales people) – a team of people who are known, proven and trusted, so it is probably appropriate to remind you that in changing times like we are experiencing, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team at Metropole have no properties to sell, so their advice is independent and unbiased.
If you want to find out a bit more about what is happening in your local market and what our research suggests is in store for us, join us at a free property briefing in Melbourne, Sydney and Brisbane or with our associates in Perth. Just click here NOW to find out more and reserve your place.
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