Overview

Overview & History

Why buy Australian? Australian property prices have (on average) doubled every 7-10 years for the last 100 years.

As written by Dr Tony Hayek – Blue Wealth in his ‘Once in a lifetime’:

Your ability to hold an asset base as long as possible is determined by the cash flow of the assets. The cash flow is for the most part determined by two things – interest rates and rent. It is fair to say that it’s difficult to see the interest rate environment being any better than it is at the moment. The last time variable interest rates were at 5.2% was in 1964. Rental increases are impacted by the old rule of supply and demand. At the moment there is obviously more demand than supply. The supply of new property coming onto the market has slowed and in cities like Sydney, building approval rates are at 50 year lows. As a result of this vacancy rates are below the critical 2% level in every capital city. Rents in every capital city in the country are on a rapid rise. Rents in Brisbane, Perth and Darwin all grew by more than 10% in the year to September 2008, Sydney topped the list with annual growth of 14.7%.

Historically Australian house prices double within 7-10 years. By way of an example, according to RPData Sydney's median house price in the year 2000 was $305,000 and in a recent 2010 report the median house price has risen to $595,000.

There is a saying 'time in the market is more important than timing in the market' and the above figures would support that saying. If you purchase an investment property in an Australian Capital City, which has been thoroughly researched and recommended by one of our Research Houses, you can expect to see your investment grow.