Australia HCDROPS

Opportunity

The Huge Opportunity for property investors

Simply put, there’s never been a much better time to be a property investor in this country. When you have potentially between 14 million and 28 million new migrants coming into Australia, you are talking about adding between 3-7 million more folks into a major city like Melbourne or Sydney over another 40 years, or between 100,000 to 200,000 per 12 months. You can start imaging how much wider and taller each of these cities will have to become.

The following are the key characteristics which underpin property investing trends for the future:

Most migrants are between your ages of 26 and 45. They tend to be in the age bracket where they have young kids, so a big percentage of new housing in Australia has to cater for these young families.
A large proportion of this generation of migrants come already skilled or qualified to earn a higher income than the average locals.
Most migrants will have to start out in Australia as tenants for the first couple of years as mortgage insurance companies simply won’t insure the banking institutions to lend money to someone who hasn’t yet established a reasonable work or credit history in Australia.
Most new migrants have a tendency to live around other past migrants from the same ethnic community for support.
Most migrants give high priority with their children’s education, as that is how they ended up qualifying to come to Australia, so good schools are very important to them.
First generation migrants are less concerned about the prestige of a suburb initially as they do not have the local knowledge of their local status. Convenience, access to inexpensive shopping and value for money are far more important than status for them for the first couple of years.
First generation migrants are usually good savers, and together with the good income they earn, you would expect the areas they choose to live will perform better than the average.
Summary

It really is my view that Australia is going into a golden era of prosperity. And home owners and property traders stand to advantage greatly from it.

As a general rule, you are less likely to lose in investing if you follow where in fact the banks put their money. For example, the banks followed the baby-boomers who were the biggest income generating group over the past 15 years. The suburbs they resided in did very well and some are even over-valued today.

Now with the baby-boomers retiring, the banking institutions have moved their focus to the next income producing group which are between the ages of 30-45. This group includes the massive number of migrants who will be generating good incomes over the next 15 years. If you buy in the areas where this group is likely to live, you stand to benefit more financially by going with this new trend.

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