Australian economy forecast to outshine other advanced nations

The International Monetary Fund (IMF) has reiterated the Australian economy to be superior over other advanced nations, with the release of its October 2012 World Economic Outlook (WEO).

Despite global turmoil characterised by instability in Europe and less than favourable conditions in the United States, Australia’s economy is still forecast to grow by 3.3 per cent in 2012 and three per cent in 2013.

The Australian economy recently surpassed Spain to become the 12th largest economy in the world.

Investment opportunities are rife in Australia, with strong government finances, low unemployment figures and a pipeline of investment supported by a burgeoning resources sector.

For real estate investors, it may be just the right time to begin a new venture.

Not only are national economic conditions positive, there are also key local indicators that offer promising prospects.

It is important to remember that certain areas are better equipped to weather challenges stemming from a globally uncertain environment.

Mining areas are quite tempting and have the potential to bring lucrative returns, a prospect that is supported by rising rental prices in Perth and dwelling price increases in regional Queensland.

However, established cities have also been demonstrating an effort to diversify economies and have been experiencing potentially lucrative trends.

More Melburnians are opting to rent accommodation over purchasing real estate for example, making property ownership in certain districts highly valuable.

An increase of single-person dwellings is also becoming apparent in select metropolitan areas, which makes the notion of buying an investment apartment over a comparatively expensive house quite appealing.

Those considering property investment in Australia would be well served to define their parameters – length of term, estimated returns and amount of work necessary – do their research and take action.

The luxury that Australian investors have over their overseas counterparts for the next foreseeable future, is the fact that the Australian economy is anchored by strong credit, a near-balanced federal budget and an abundant in-demand resources.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.