A population increase, what does this mean to us ?
I ran into a June 2001 report from the Australian Bureau of Statistics which said : “The Outer Melbourne Statistical Local Areas (SLAs) of Melton (S) – East and Wyndham (C) – Balance experienced population increases of 44.7% and 24.2% respectively during the year ending 30 June 2000. Other strong growth in Outer Melbourne occurred in Hume (C) – Craigieburn (9.5%), Casey (C) – Berwick (8.6%) and Knox (C) – South (6.8%).* “
Now, to start off, I am not familiar with these areas because they are in a state different to where I live.
My thoughts are, my question is, what does that actually mean to an investor.
If there is a large growth in a particular area that may well have come about because new residential areas have opened up thus attracting a large influx of people moving into the new estates.
It doesn’t necessarily mean that it is O.K. for us to buy an older style house in the town as the demand for rental properties may actually not have increased despite the ABS figures showing an increase in population.
Worse still, some owner/occupiers may well decide to move from the older dwelling areas to the new areas in town thus adding to the rental supply.
Comments please.
Pisces
Pisces,
The areas you have mentioned are growing in population due to land availability. That is, these areas, are some of the only few remaining, that you can actually buy land on which to build. They are not the only ones ofcourse, however as they are a bit further out from CBD, they are cheaper than your inner suburbian regions, hence more appealing to first home buyers (looking to become owner/occupiers).
Does that help???
Jo
Hi Pisces,
I read a statistic once that 800 ppl migrate into Australia (or Melbourne was it???) every week – that simply means that these ppl are going to need a place to rent. Also, many young youth are getting married these days without any financial stability – then comes the child which adds extra strain to the family living and they can’t afford to purchase a house. They have to rent which means more investment properties for you all.
Kind Regards,
George.“If You never never ask, you’ll never never know”
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