There are two trends in the Aussie economy that will help real estate investors pick up great property bargains…
If you act quickly.
The first trend I’m talking about is the changing structure of our economy…
For the first half of the 20th century, agriculture was a main driver of the Australian economy…
Then, after World War II, manufacturing became a big factor, employing one out of every fourth worker.
But all of that has turned over a couple of times and the trends are now changing rapidly…
Which puts you as a real estate investor, in a fantastic position.
New ways to make a living
According to a study published last month by the Grattan Institute…
More of the Australian GDP is coming from knowledge-intensive industries and services…
And these types of products and services are centered in and around our major cities…
Specifically, they’re found in the central business districts and other business centers.
This in turn produces its own economic dynamic of attracting more talented workers to those areas…
Leading to even greater productivity…
Which attracts more talented people…
And higher wages.
All of these factors related to knowledge intensive-industries lead to higher demand for properties in those areas.
Of course, it’s no secret that property values in the cities have gone up quite a bit…
And property prices in the suburbs are also rising quickly…
With no sign that demand in these areas will slow down as long as supply remains so low.
“Great,” you’re thinking, “but how does that help me if I can’t afford to buy in those areas?”
The rise of teleworkers
The answer to that question lays in the second big trend that is part of the knowledge-intensive economy that is driving the economy…
According to the most recent issue of the Australian Bureau of Statistics’ (ABS) Business Use of Information Technology (BUIT)…
Teleworking is becoming a very big part of the knowledge-intensive economy in Oz…
More and more workers in the knowledge-intensive industries are not actually driving into the cities to work…
They’re working from home over the worldwide web.
The latest surveys tell us that more than 75 per cent of larger businesses in the capital cities areas now use the internet for teleworkers…
And even more than a third of the micro businesses use the internet to allow their workers to work from home…
Which is an 8 per cent increase over the past two years alone.
Now, let’s think about what the percentages of teleworkers will be in the next couple of years…
There’s no doubt that they will only increase.
That means more workers in the knowledge-intensive industries and services will be looking for housing…
But the places they look will not necessarily be in the cities or near suburbs.
They may well be just a bit further out from there.
Think about that for a moment…
And put yourself in the shoes of a teleworker who doesn’t have to drive or take the train into work every morning…
You might want a flat in the city…
But just as likely…
You’ll want a bit more house and a bit more space.
But at the same time, you don’t want to be too far away…
Because you’ll have to make the drive into the office every now and again to meet a client…
Or just to prove to the boss that you really exist.
Opportunities outside the suburbs
That’s just what happens with teleworkers…
They’re paid very well to work in knowledge-intensive industries from home.
In fact, 80 per cent of Australia’s GDP is derived from just 0.2 per cent of the land in the entire country…
And that land is in and around the major Aussie cities.
When both these trends are combined…
Along with the billions in new roadways and other infrastructure that is now underway and will continue over the next several years or so…
That will expand communication and transportation corridors and link more of the outlying areas to the cities…
Those areas outside the current suburbs of the capital cities will be in high demand by highly-paid teleworkers.
These are simple facts that as a real estate investor, provide you with terrific opportunities…
To pick up properties 15, 20, 25, or even 30 miles or more outside the business centers of capital cities.
Smaller towns even further out than that will also be seeing value growth and demand…
Because the power and impact of these trends on the economic growth of the country cannot be overstated…
The way Australians work is changing…
And where they work as well.
This means that your options for real estate investing are changing, too.
Seeing where the opportunity will be in a few years can make all the difference in your portfolio…
All you have to do is capitalize on these trends today.