- September 11, 2018
- Posted by: Rogers Property Group
- Category: International Property Market
I watched an interesting documentary recently on who owns property in Germany. I was most surprised to learn that 5% of Germans own 50% of all property in Germany. Also, over 50% of Germans don’t own any property at all and they are forced to rent. Which obviously they are not happy about.
I found these findings quite interesting and felt I was looking through a window into the potential future of Australia. Germany has been around a lot longer than Australia and is a much more mature market. I can see Australia going down this track in the future. People who are smart enough and have the discipline to get into the property market either as a home or as an investment will be one of the eventual few that own property. With property prices rising much faster than wage growth, especially in areas where people want to live, it will eventually be a case of less and less people owning property and a smaller number of wealthy people owning the majority.
This documentary just reinforced my goal to me. To own as much quality property that I can over the longer term. Not only for myself to benefit but to create generational wealth that my kids and grandkids will benefit from.
If you have the capacity to invest in property, take the opportunity. It is as cheap as it will ever be. Next year, it will just be more expensive and the year after that, more expensive again. A good example of this is “Fairwater” – a home on Sydney harbour. Purchased in 1901 for £5,350 and is now anticipated to sell for $100m. That is an increase of 20,000 times.