Over the past couple of years it’s been pert near impossible to open a paper, read an online property report or listen to the news without hearing something about Australia’s “Housing Shortage.”
The HIA – JELD-WEN Housing to 2020 Report prepared by the economists at the Housing Industry Association (HIA) predicts a massive property shortfall by 2020 of more than 500,000 homes.
The problem with this statistic is that it’s a headline number.
It’s the one the newspapers and other media outlets pick up on because it sells. Leaving the rest of the report’s more detailed information out of the story.
You only have to take a look at the media articles on this page (and this is a tiny sample of what’s regularly put out through our mainstream television, radio, print and online media) to see this is the case >>>The problem with headline statistics like this, is that many people fail to understand there are areas of both under supply and over supply within the Australian property market. In fact, I would go so far as to say there is no “Australian” property market.
And by that I mean looking at the Australian property market as a whole really doesn’t tell experienced, A-Grade investors very much, because they know there are literally thousands of markets within markets all around Australia.
And sometimes it comes down to sections within the same town, and even streets. So, it’s a mistake to look at these headlines and think because there is a supposed “national” property shortage being touted by the media, that there are good buying opportunities to be had everywhere.
Because that will end up costing you… big time.
Current examples of oversupply are best typified by the unit markets in Melbourne CBD and the Gold Coast.
And it’s very easy to get caught buying units even in areas with current low supply issues, because even a single unit project can contain hundreds of properties… all to be finished somewhat simultaneously and by the time they are completed they could potentially flood the market. You really must understand both sides of the Supply Vs Demand equation.
I was interested to read this month in Your Investment Property Magazine a report that studied the Supply Vs Demand equation in 650 Australian suburbs.And, in line with what I’ve been saying, only 27% of those 650 suburbs are experiencing High Demand / Low Supply.
NSW featured as the main state with undersupply issues with a massive 72% of the suburbs mentioned in this ‘High Demand – Low Supply’ list. As I’ve been telling my members for a while now, certain property markets in NSW are currently offering almost “the perfect storm”, combining low supply, strong demand, and a long break from the last growth cycle.
I would still recommend you exercise caution when considering where you will be investing, if you plan on purchasing property in 2013.
If you’d like to know more, I’m sharing info on the "Massive Shifts Headed for the Australian Property Market" and more in a special online training.
It will be available for the next few days, so be sure to register now for your chance to watch it.
Several choices of times are available in the next couple of days.
I’m looking forward to sharing the trends, the areas to avoid and the areas where I see the most opportunity for investors in 2013.
And, as I always say “If you can’t buy it with your lunch money – don’t buy it!“
To your success,
The Lunch Money Property Millionaire