People from all around the world for all sorts of reasons have, for a long time now, targeted Australia as the ideal place to live.
Net overseas migration makes up a significant proportion of Australia's population growth and has outstripped the natural increase in the population since 2005.
The changing face of Australia will continue to change - so why should we care from a residential property investor’s point of view…?
People will always need a place to call home
Australians can do without a lot of things, but a place to live isn’t one of them, which means the demand for average residential property is durable and long lasting.
So consider this - an estimated population of 35 million by 2050 and 44 million by 2070, mostly driven by migration.
Where will these people live? What will a home cost to buy? How will our infrastructure support this growth?
While we can’t answer these questions with any certainty, the one thing that we know for sure is that any population increase will continue to fuel the property cycle and those that understand this and take action now will benefit in the longer-term.
More people means additional infrastructure
One of the issues raised about a ‘big Australia’ is the need for the appropriate amount of infrastructure to deal with this population increase.
According to the Australian Population Institute, a non-profit and non-political organisation promoting the benefits of responsible population growth in Australia, long-term planning is imperative to ensure timely and orderly provision of needed infrastructure.
In other words, as the population increases so should the appropriate infrastructure required to meet demand.
This is a basic supply and demand equation and will not only provide jobs for Australian citizens or skilled migrants, but also underpin the need for more housing.
Any increase in immigration numbers will deliver opportunity for real estate investors
Historically, well located residential real estate has doubled in value on average every seven to 10 years.
So if we know two things for sure – Australia’s population will increase and so too will property prices in line with this.
Call2View can provide a range of advice on residential property investment – give us a call today on (08) 8932 8858.
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