NEWS
House prices in Australia will rise by nearly 20 per cent in the next three years, a leading forecaster says.
The rise would add more than $100,000 to the average house price.
A shortage of new homes, rocketing population and lucrative tax breaks have combined to create a perfect environment for property investors who are set to make a fortune as even more first home buyers are priced out of the market.
According to research by BIS Shrapnel for QBE Lenders Mortgage Insurance, prices will rise 3 per cent this financial year before soaring 8 per cent in each of the following years.
Ian Graham, QBE's chief executive, said the lowest interest rates in 40 years had pushed housing affordability to the most attractive level in nearly a decade. Mr Graham said the positive outlook made it a great time now for both investors and first home buyers.
The shortage of properties would also keep vacancy rates low, which would push rents higher and make Australian property a better investment.
The Housing Industry Association predicts the housing shortage will worsen in the next decade.
Source: Herald Sun
Published: 18 October 2009
