Recently, the Australian Bureau of Statistics (ABS) released a report that has mortgage brokers in Rockingham, Baldivis and similar Perth suburbs taking a serious look at the future. According to the ABS, more than 4.5 million households are going to be added to Australia by 2040.

That will give Australia a total of 12.7 million households as opposed to the current 8.2 million for an increase of 54.9%. Couple only families are projected to increase by 64% for a total of 3.8 million in the next 21 years. A great deal of this projected rise is because most baby boomers who are still alive will be “empty nesters.” By 2036, there will also be a rise of 65% in one-person households.

What it Means to You

The first and most important factor here is that there is going to have to be housing for 4.5 million households. While families will still be dominant, we see a shift to more units and smaller houses. The average land block in Australia has diminished nearly by half in the last 50 years. We see that trend continuing.

However, there are still going to be plenty of single family homes built, too. Most home loans in Rockingham, Kwinana and Baldivis are written for single family homes. We don’t see that changing anytime soon. But we do see land becoming more and more expensive during the next 25 years.

We think real estate is going to be a great investment vehicle for small investors in the coming years, whether it’s single family homes or units. People always need places to live and the increased demand will make prices rise in the future. We think that housing prices will rise faster than other inflation factors.

We think it is wise to buy your first home if you don’t have one already. We also think it’s wise to seriously consider an SMSF and at least one investment property.

Call (08) 9527 1800 to learn more.