Residential Property has outperformed Commercial

by joy.manginsay 12. January 2012 21:00
These past years, Residential Real Estate has created more millionaires compared to other form of investment. Based on the Report, Asset Returns Past, Present and Future, said “Owner-occupied housing had made annual average returns of 12% over the 24 years since 1987 even when costs and taxes were factored in.” The next best asset class will be the Investor housing and owner- occupied housing had the highest returns in part because of capital gains tax exemptions. Investor housing  were followed by government bonds, term deposits and commercial property in performing better equities and shows strong returns.

According to Research by ANZ, “Residential Property has eclipsed shares as Australia’s highest returning asset class over the past 24 years, but not over next decade it will be outperformed by Commercial property.” Because of the housing shortage, many investors will take their fortune to Residential Property and house price may rise. First home buyers also will start to re enter again the market in which really helps to improve the economy.

Perth and Brisbane change in Status

by joy.manginsay 19. December 2011 18:27

Perth is now returning to growth after three years of declining markets. Brisbane and Perth are the weakest city markets this year but the weakest cities are expected changed ins tatus to the strongest city markets next year.The two cities namely Perth and Brisbane have much in common, both are seeing growing airport to traffic from fly-in-fly-out workers. Both cities are boosted by emerging resources boom and have CBD office vacancies contract and for industrial property grow. They are both seeing improving sales volumes and rising rents for residential property. In Brisbane City, the number of house sales is 13% but the median house price reduced 2%. The vacancy rate in Brisbane city is 2.3%, while Logan city is 1.8%. The REIQ says, the state's tourism centers of the gold, sunshine and Fraser coasts, as well as Cairus, are sill experiencing oversuply of stock.

According to Andrew Wilson, Economist for Australian Property Monitors, says, " Perth has the potential to go on one of its notorious price benders next year. I wouldn't be surprised to see double-digit price growth in Perth in 2012." Perth is already the capital int he office, industrial and hotel markets. One indicator is data on fly-in-fly-out workers passing through Perth Airport. Perth Residential Property will follow in 2012.


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