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Why Buy Real Estate Now – Part 1: Simple Economics; Supply & Demand

28 Mar 2012 Stuart Zullo 0 Comment

Taking that first step into the Liverpool real estate market can be a little confronting, and no matter what the current market is doing, there will always be reasons that will make you believe that now is or isn’t a good time to buy property.

But if you are hesitant to get into the Liverpool real estate market due to apprehension about whether it will be a sound investment, then take a moment to think about the simple economics of supply and demand.

Liverpool’s population is growing at a rapid pace, thanks to new developments and property prices in Sydney’s inner-suburbs pushing homeowners outwards.

This continued growth is creating a strong demand for property in outer Sydney suburbs like Liverpool, and that demand looks set to keep going up over the coming years.

While new homes will be built to help accommodate our growing numbers, it’s unlikely that there will be enough new homes to help keep up with our suburb’s growing demand.

If you take the simple economics of supply vs. demand and look at how it affects price in any industry, as demand increases and supply decreases, prices will inevitably go up.

Using that logic, it makes sense for buyers to get into the Liverpool real estate market before house prices rise further, and investors should look to the current real estate market as a real opportunity to get in while there are some bargain prices to be had.

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