Supply and Demand.

Here in Australia, mainly in Queensland we are experiencing some of the worst flooding in nearly 100 years – you just can’t prepare for that. Not only have people lost their homes and belongings, destroyed by the water and mud but our farmers have had their crops completely wiped out. All their hard work gone and it will take months to be able to get things prepared to start again.

What does this mean to us as consumers? Lack of supply and high demand leads to high prices. Many varieties will be in very short supply if available at all which means a premium will be paid for them. Root crops like potatoes are one of the worst effected but even the fruit will be water marked and perhaps even taste watery because of all the rain.

It’s going to be a very tough few months for farmers and consumers and there isn’t anything we can do about it. We don’t want to import produce from overseas; that will be the death of our farming economy so we are just going to have to deal with it and hope the rain stops.

Does this relate to property investing?

You bet it does. It’s the same philosophy – invest in areas of high demand and low supply, you will always have tenants and you will be able to achieve higher rents because of the high demand.

What makes an area a high demand suburb? Facilities like schools, hospitals, public transport, shops, these all make a suburb more attractive to everyone and especially tenants.

The great thing about investing in Australia is that we are actually under-supplied with residential rental properties and this will be the case for quite some time as the GFC slowed building down considerably.

Now is a buyers’ market, don’t listen to all the doom and gloomers – people always need somewhere to live. Don’t wait to invest in property, invest in property and wait!

Regards Arlene
www.tic.com.au

“One day at a time – this is enough. Do not look back and grieve over the past, for it is gone: and do not be troubled about the future, for it has not yet come. Live in the present, and make it so beautiful that it will be worth remembering.”
Ida Scott Taylor 1820-1915, Author