Thankfully Australia has managed to weather the economic downturn quite well. Along with Canada they have felt the ‘credit crunch’ allot less than other countries around the world. Due to stricter lending rules and more land available to build homes, Australia did not see the ‘Boom’ which other countries experienced in 2004 - 2006.

However, expert opinions are divided as to whether 2010 will see an increase or a decrease in prices. The majority of financial specialists in Australia tend to agree that property prices will fall by between 5 and 10% next year and an increase in property prices will not be evident until at least 2011.

Four main factors will affect the Australian property market. These are debt, employment, global economy and house price stability. Unfortunately throughout Australia debt is at an all time high and the amount of buyers will drop as they cannot afford to get themselves into more debt.

With unemployment rates also rising many businesses are playing safe and either laying off staff or cutting their hours from full time to part time thus saving money on wages, health care and tax. Due to the global economy, redundancies will also increase is the economy does not pick up.

During 2009, the Australian property market managed to maintain a solid ground. If Australia can keep interest rates low and hold back on repossessions then modest increases should be attainable in a couple of years.

Thankfully, banks are working with customers, and to bring back the economy are allowing customers to keep their homes. Large amounts of overvalued repossessions, if held by the banks, will surely see the market fall.

Although reserved, overseas buyers are still evident. Like any investment, real estate has its upsides and downsides but in Australia, extra taxes and fees associated with owning property are kept fairly low.

Foreign investment is important to any countries economy. Australia has therefore made purchasing property fairly straightforward. Although agreement has to be sought from the Australia Government, which can be timely but straightforward, but after that the process is fairly simple.

So whether it is a commercial or residential property you are investing in, Australia is still a prime country for investment and will no doubt ride out the storm for the next year or so.

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