After some horror weeks on the Australian Securities Exchange, local economists predict that Australian investors will begin turning away from the uncertainty of the share market and investing in real estate instead.
“As a knee-jerk reaction, investors are seeing the volatility of the financial markets, and asking themselves, ‘Where else can I go that’s not as volatile?’” Hans Kunnen, St George Bank’s chief economist, told real estate website Domain.com.au. “Property is an answer. They say, ‘I’m not having a bar of the share market; I’ll stick with bricks and mortar.’”
Merrill Lynch chief economist Alex Joiner agreed with Mr Kunnen’s assessment, and added that property is considered a safe option because Australians instinctively trust tangible assets.
“The Chinese volatility, concerns about global growth, Fed rates rises – these are things not front of mind of for most people,” Mr Joiner explained. “They think property is safer bet because they have much more confidence in it.”
Economists suggest an influx of new property investors, including Australians and foreign investors encouraged by the low Aussie dollar, could drive the Australian real estate market higher in the long-term, especially in areas of high demand. However, the financial experts insist that property prices won’t rise significantly in the near future. That makes now the best time to start thinking about securing your own investment home or expanding your property portfolio.
So don’t delay. Speak to Chase Edwards today for a free financial health check and the advice you need to enter the investment property market sooner.