If you are thinking of purchasing an investment property and are looking for business finance in Rockingham, you are not alone. According to recent figures from the Australian Bureau of Statistics (ABS), real estate, rental and hiring services accounted for 15% of all Australian non-mining investment in 2014-15. In 1994-95, their contribution was 7.1%. Across Australia, the value of combined real estate investments is now closing in on $6 billion.
According to the ABS, non-mining investment covers all industries not related to mining in a direct fashion. This includes such industries as forestry, agriculture, manufacturing, construction and retail.
According to the ABS, non-mining investments have produced steady growth averaging 0.7% per quarter since June 2010. This has parallelled the 0.9% quarterly growth of the gross domestic product (GDP) in the same period. The ABS has acknowledged that these two statistics are “aligned.”
Real Estate is Providing Superior Return on Investment (ROI)
According to a report from the Australian Securities Exchange (ASX), Australians who have invested in residential properties have been rewarded with an average yearly return of 7% for the years 2005-2015. In the same report, ASX also describes prospects for the share markets as “lagging” and the outlook for bonds and the Australian dollar as being “poor.”
This leaves property investment as a great current option for many Australians.
From a Business Finance Point of View
We agree with the ABS; property investment seems to be the most stable vehicle and seems to offer the highest upside. In an area like Rockingham, where we have taken turns with Baldivis as being a “hot Perth suburb” for housing growth, we have watched several small local investors add to their “nest eggs” through property investment.
If you are interested in some business finance for investment properties, call us at Smartline Rockingham and we’ll see if we can get you pre-approved for a loan: (08) 9527 1800.