thepurhase

The Thought Process

Why should I choose Australia? Australia’s prime location, beautiful scenery, unique nature, cool climate, friendly and culturally diverse people and thriving economy has made it a favourite destination for many families around the world.

For Migration Australia is one of the world’s most culturally diverse countries. As at June 2013, more than 27% of its population (i.e. approximately 6.4 million people) are foreign-born. This is almost one third of Australia’s population. Ten years earlier (in 2003), this number was only 4.7 million people. (Source: Australian Bureau of Statistics, September 2013)

Due to its vast array of culture, a wide variety of influences have been incorporated into people’s lives and activities – which gives migrants a feeling that they are at home, even when they are miles away from home. These have all contributed to the steady increase of migrants into Australia. According to the Census of Population and Housing by the Australian Bureau of Statistics, the number of migrants arriving during the decades 1981-1990 and 1991-2000 were comparable (783,000 and 787,000 persons respectively). However, the number of migrants arriving during the most recent decade (2001-2010) more than doubled to 1.6 million. (Source: Australian Bureau of Statistics, 3416.0 – Perspectives on Migrants, March 2013)

For Studies According to the Department of Immigration and Citizenship, Student Visa Programme Quarterly Report – 31 December 2013, Australia records 11 consecutive years of growth in the Student Visa Program.

Evidently, enrolments by international students in Australia on a student visa increased to 526,932 in 2013. This compares with the average annual growth rate for enrolments of 5.9% per year over the preceding ten years. (Source: End of Year Summary of International Student Enrolment Data – Australia – 2013, Australian Education International)

This comes as no surprise as Australia boasts some of the world’s most renowned universities, and has produced some of the nation’s top-notched leaders. Its high quality education is further complemented by Australia’s prime location, which happens to be within close proximity to all Asian countries.

With such high quality education just hours away from your home, it is no wonder students prefer Australia as the platform for furthering their education.

For Investment Underpinned by a strong resource and education industry, Australia has recorded 22 years of uninterrupted annual growth from 1991 to 2012 – an achievement unequalled by any other developed economy (Source: IMF World Economic Outlook Database 2012). Looking forward, the Australian economy (GDP) is forecast to grow at a rate of up to 3.2% from 2013 to 2017 – and the International Monetary Fund (IMF) expects that Australia’s real GDP growth will outperform every major advanced economy to 2017. (Source: IMF World Economic Outlook – Oct 2012)

With such optimistic figures, this gives many families the extra confidence in Australia, which has also contributed to the steady stream of immigrants into the country from all walks of life as seen from the above.

Australian Housing Deficiency Over the last 20 years, new dwelling commencements have averaged 155,550 a year. Under the most conservative of estimates, over coming decades Australia needs to average 180,000 new dwellings a year to adequately house our growing and ageing population (Source: New Home Building – looking into 2014, Dec 2013 – Housing Industry Association)

This undersupply is not expected to recover anytime soon (Source: Mark Borrill, Property Insight). The HIA reports that if current building trends persist, Australia’s cumulated housing shortage would reach 466,000 dwellings by 2020. (Source: HIA release – Housing Shortage Tracking to 500,000 by 2020, 18 March 2010)

The cumulative effect of successive years of undersupply is captured in the chart below:

Moody’s Investors Service has given the Australian economy an upbeat assessment – AAA ratings – based on the country’s high economic resiliency, government financial strength and low susceptibility to event risk. Australia has avoided a recession in recent years despite the Global Financial Crisis (GFC) hitting its major trading partners hard. (Source: Australian economy ‘very resilient’: Moody’s – Financial Review, 1 July 2013)

According to data from the Australian Bureau of Statistics, property prices in Australia have historically doubled approximately every seven to ten years. The robustness of the property market is further emphasised by a report by Canada’s Scotiabank (which tracked the housing markets in 12 advanced economies throughout 2010) stating that Australia recorded the highest increase in home prices in the year 2010 to September, i.e. at 9.4%.

All these, coupled with a well regulated and transparent real estate industry, makes Australia an ever attractive destination to invest in properties.