New high for housing construction figures
Anyone considering property in the near future should give some thought towards constructing their own home. The current strength of the industry offers some comfort for anyone sitting on the fence about the idea, with the latest National Outlook report released by the Housing Industry Association (HIA) anticipating 2014 to reach a new high for dwelling starts. The nation is expected to see up to 190,000 by the end of the year - beating out the last high of 187,000 recorded in 1994.
With these kinds of figures occurring nationwide, now could be a brilliant time to consider taking out a construction home loan and making moves into your local market today. HIA Chief Economist Harley Dale said the growth of the market has been slow to gain momentum, but should have a lasting appeal for the future as the industry begins a sustainable level of development.
"The momentum culminating in this milestone has provided a substantial boost to Australia's economy at a crucial juncture in the cycle," said Mr Dale in a November 23 statement.
"Record low borrowing costs have combined with other factors such as high net overseas migration to unleash substantial pent-up demand for new housing. These factors will keep the level of new homes commenced at historically elevated levels."
However, Mr Dale did go on to say the nation would need further growth in home growth reforms and regulation changes, in order to maintain this level of development. There needs to be some reforms made to help compliment the low borrowing costs permeating the market at the moment, in order to keep new home building figures high heading into 2015/16.
"It is still an impressive achievement to build a record number of new homes, at a level that approaches what the average build rate will have to be if we are to adequately house our growing and ageing population in coming decades. Sadly, renovations investment has not joined the new housing ride this cycle, increasing by only 0.3 per cent in 2013/14 from a decade low."
Significant levels of growth recorded in Queensland
Specifically, those interested in a strong region of construction growth in Australia should look towards the fertile Queensland market. The National Outlook reported that the Sunshine State was in the midst of a big upswing in activity, after some difficult years following the global financial crisis.
HIA Executive Director for Queensland Warwick Temby said new dwelling commencements would be achieving a second year of consecutive growth, with the region experiencing the strongest levels of activity since 2008.
"The strength of new home building is matched by increasingly good prospects for home renovations activity in the state, which entered a sustained expansion during 2014," said Mr Temby in a November 24 statement.
In fact, the forecast for 2014 alone is a huge 13.9 per cent increase in the number of commencements, climbing to just over 37,000 for the period. This follows the 13.4 per cent increase seen in 2013. By 2016, the expectation for commencements measures above 41,000 for the year.
If you're interested in constructing your own piece of Australian property, now could be the right time to get in touch with a financial expert to begin discussing the various home loan options available to you in the region.
Regardless of whether you're looking into buying in Queensland, New South Wales, Western Australia or elsewhere, speaking with a professional about the most suitable avenue to consider is the first step towards achieving property success in Australia.
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