Economics Housing

Year 11 Economics

Written Response to Enquiry

Contents

Introduction 1

economic climate

Brisbane Property 1

Sydney Property 1

Darwin Property 1

Recommendation 1

Conclusion 1

Introduction:

The purpose of this report is to evaluate the property market in order to determine the best investment property. The areas that will be evaluated include Brisbane, Sydney and Darwin with a maximum property price of $400 000.

Economic climate +preferred investment option

Although the economy is in a tough time, with the effects of the global financial crises still being felt the real estate market is strong. This is due to the 50 year low interest rates as well as the government first home buyer handouts. In 2009 prices surged in the residential sector with few experiencing too much supply, therefore the tenant demand is expected to lift.

The expectation for the future includes unemployment levels dropping and population growth from overseas creating a strong market. The biggest threat to the industry is increasing interest and mortgage rates as well as maintaining the demand for houses.

These two graphs show that the average Australia prefers to live in a house rather than and apartment and due to the low interest rates it is better to buy a house and rent it out than to buy and apartment due to the demand of housing.

Brisbane Suburb Sunnybank

Price: $399 000

Property type: House

Location: Sunnybank

Bedrooms: 3

Bathrooms: 2

. http://www.realestate.com.au/property-house-qld-sunnybank-106520293

1) The short term return on this property is reasonably high. Sunnybank is located 14km from Brisbane’s CBD. This means there are a lot of job opportunities nearby. This house is in walking distance to the train station school and shops meaning transportation is exceptionally good.

The current supply and demand for houses in this area is exceptionally good. Although there is...