Understand the Australian Property Market

To truly understand the property market, you need to understand the Australian economy. Why? Because they go hand in hand.

So in this email I am going to provide you with some of the groundwork to get a much better handle on things. 

Here’s the thing… 

Once you understand the Australian economy, you’ll see the bigger picture. When you see the bigger picture, you may feel a bit more comfortable with the real estate market; and where it’s going.

First, look at the construction industry.

The property industry employs a lot of employees. It’s the third biggest industry behind healthcare and education services. Approximately 13% of the GDP comes from the property industry.

Now, when construction makes up a lot of the GDP, what does that tell you?

Think about where the government gets its main source of revenue…

They get it from income tax.

That’s really why the government does all of these stimulus packages for you. The property and construction industry gets incentives, too.

Why?

The government wants to protect its revenue source, including jobs and the property sector. Doing so helps them protect their pockets.

Let’s take it one step further…

When you buy property, what do you pay?

You pay stamp duty, right?

You hold onto the property and you pay land tax. You dispose of the property and you pay capital gains tax. And through all of that, you’re paying income tax.

Every move you make, they’re there with their hand out.

Now, there are a couple of ways you can look at this.

You can think, “They’re taking money out of my pocket!” It’s a view commonly held by many Australians, so you aren’t alone in thinking that way.

But you can also think of it another way. Say, “You know, real estate is always a safe place to invest for those reasons.”

Our economy is so tightly connected to the real estate and construction industry. Because of that, our government will do whatever it needs to do to make sure it’s moving in the right direction.

It’s one of the main reasons I am such a fan of property investing. And it’s also why I love educating people about how they can secure their financial future with property. 

It’s easy to get the ball rolling.