Those buying property in Australia with a view to renting it out may benefit from the soaring cost of owning a home in Melbourne.
Posted by Craig Francis
Foreign buyers thinking of investing in Australian property may be interested to learn that Melbourne's average house price rose by almost $500 (£285) a day, reaching a record high of $559,000 in the second quarter of 2010.
Ian James, of JPP Buyer Advocates, told the Herald Sun newspaper that, as prices rocketed, it was becoming "virtually impossible" for young people to save enough money to buy their own Australian property.
Investors buying property in Australia with a view to creating rental accommodation could potentially benefit from this situation, as the rise in cash-strapped would-be house buyers may boost tenant demand.
Mr James said: "Increased housing prices, rents and interest rates are contributing to worsening affordability in Melbourne. Prices will continue to rise until the vast disparity between supply and demand stabilises."
Earlier this week, however, SQM Research told The Australian that an estimated 35,000 houses and apartments will be put on the market in Melbourne by the end of 2010, suggesting that the city could lead a nationwide price fall.
Posted by Craig Francis
Foreign buyers thinking of investing in Australian property may be interested to learn that Melbourne's average house price rose by almost $500 (£285) a day, reaching a record high of $559,000 in the second quarter of 2010.
Ian James, of JPP Buyer Advocates, told the Herald Sun newspaper that, as prices rocketed, it was becoming "virtually impossible" for young people to save enough money to buy their own Australian property.
Investors buying property in Australia with a view to creating rental accommodation could potentially benefit from this situation, as the rise in cash-strapped would-be house buyers may boost tenant demand.
Mr James said: "Increased housing prices, rents and interest rates are contributing to worsening affordability in Melbourne. Prices will continue to rise until the vast disparity between supply and demand stabilises."
Earlier this week, however, SQM Research told The Australian that an estimated 35,000 houses and apartments will be put on the market in Melbourne by the end of 2010, suggesting that the city could lead a nationwide price fall.
