Australia is short 100,000 new homes needed to meet the demand
Australia is facing a housing shortage. The federal government estimates that 100,000 new homes will be needed in the next decade to keep up with population growth. This shortage could lead to increased demand for investment properties, as investors look to capitalize on the growing demand for housing.
There are a number of factors contributing to the housing shortage in Perth. The city's population has been growing rapidly in recent years, due to a number of factors including the mining boom and the influx of skilled workers from overseas. In addition, the supply of new housing has not kept pace with demand. This is due in part to the high cost of land and construction, as well as the lengthy planning approvals process.
The housing shortage is having a number of negative impacts on Perth. The rental market is extremely tight, with vacancy rates at record lows. This has led to rising rents, which are putting a strain on the budgets of many households. In addition, the shortage of housing is making it difficult for people to buy their first home.
The increased demand for investment properties could help to alleviate some of the negative impacts of the housing shortage. By building new investment properties, developers can help to increase the supply of housing and bring down rents. In addition, investors can provide rental accommodation to people who are struggling to buy their own home.
Overall, the housing shortage in Australia could lead to increased demand for investment properties. Perth in Western Australia is going to most affected, with a need of up to 30,000 properties by 2025. However, investors should carefully consider the risks and rewards before investing in property.
Here are some tips for investors who are considering building an investment property in Perth:
• Do your research. Make sure you understand the local market and the demand for housing.
• Choose the right location. Consider factors such as proximity to public transport, schools, and amenities.
• Get professional advice. Consult with a financial advisor or property expert to get help with your investment strategy.