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Type Of Property In Demand
The recent Housing Australia Report was more proof to us that what we say about demand versus supply being crucial.
Far too often our clients want to buy what has worked for them in their area the live and that can be a big mistake. As what is sought after in one country or one area is very often very different to another. One of the major aspects of our research is to identify not only what is THE REAL DEMAND in the area but also what the REAL SUPPLY is.
This then leads us to being able to identify the ages, income, mindset and needs of the people going to be residing in that area.
I told one potential client this recent visit that not all people wanted a large home on a big block so he took that to mean that type of property won’t work. That is not the case, it is simply a matter of knowing what is relevant in each area. In some areas yes there is a need for larger lots and properties, but in others a need for smaller ones.
Most council’s across the country are forcing new developments to be smaller plot size to assist with the shortage so in fact owning a larger lot will be excellent in some areas as the supply of that type of property becomes harder to find.
There is a place for both larger and smaller properties and that is why the research we do is so crucial to our investors. It is equally important that in any area we identify if it is more inclined to suit the owner occupier market or the tenant market and often it is both.
Extract from the Report: Australia is going to need 3.8 million more homes over the next 20 years, according to the National Housing Supply Council's (NHSC) 2nd State of Supply Report.
This will require over 180,000 new dwellings being built each year, which the Council acknowledges may be a problem given the shortfalls over the past few years.
The report shows that the gap between demand and supply increased from 99,500 dwellings at June 2008 to 178,400 dwellings at June 2009.
The Housing Industry Association (HIA) says this gap, between the number of homes being supplied and the number needed, increased by 78,800 dwellings during last financial year alone and is projected to exceed 300,000 dwellings by 2014.
Take also into consideration, Australia's ageing population is also affecting housing demand, the report found.
Households with residents aged over 65 years are projected to double from 1.6 million to 3.2 million households over the next two decades, indicating the increased demand for dwelling types better suited to the needs of older people.
Please feel free to contact me on email: Jenese Malone
See detailed article on house shortages in Australia here...
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