Unit 5 Home Ownership - Learning Outcomes Distinguish...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1/4/2012 1 Unit 5 Home Ownership Learning Outcomes Distinguish between different types and forms of property investments Identify advantages and disadvantages of home ownership and property investment Discuss determinants of property prices and current macroeconomic conditions Obtain property prices and interpret property price indices Discuss historical and recent property investment performance in Australia 2 Discuss the diversification benefits of property investment Explain the home buying and selling process, costs and choice considerations Discuss the key desirable features of a mortgage Explain first home buyer assistances Discuss retirement strategies involving the main residence Home Ownership in Australia Owning one’s home has long been the ‘great Australian dream’ About 70% of Australian households lived in their own home http://www.abs.gov.au/ausstats/[email protected]/Lookup/ by%20Subject/1370.0~2010~Chapter~Levels%20 of%20home%20ownership%20(5.4.3) The ‘family home’ accounts for two-thirds of private sector wealth in Australia. 4 Types of Property Investments Residential property Owner-occupied homes – Investment houses/units – Holiday houses/units Small commercial properties (e.g. shops, service stations) Larger commercial properties (e.g. office buildings, hotels and shopping centres) Land of various types 5 Forms of Property Investments Direct ownership Shared direct ownership Listed property trusts Listed property companies (e.g. Westfield). Unlisted property trusts A superannuation fund – However the use of leverage is limited here 6
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon