Australia, along with Canada seems to have weathered the economic downturn relatively well. Thanks to tougher lending policies and more land available to construct new homes, Australia failed to experience the ‘boom’ which a lot of other countries experienced in 2004 – 2006.

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

Unfortunately, debt is at an all time high in Australia, and buyers will decrease as people simply cannot afford to get into more debt. Employment, real estate price stability and the global economy are the major factors that will also affect the Australian real estate market.

Throughout Australia, unemployment rates are soaring annually. Due to the global economy crisis many businesses are playing safe and many full time workers have been gone to part time thus saving the company on tax, wages and health care expenses. Redundancies will also increase if the economy does not pick up.

The Australian real estate market, throughout 2009, managed to maintain solid ground. If interest rates and repossessions are kept to a minimum then modest increases in real estate prices should be seen in a few years.

The Australian banks seem to be working with their customers to help bring back the economy and are allowing customers to keep hold of their properties. If banks hold large numbers of overvalued repossessions then the market will undoubtedably suffer.

Although cautious, foreign buyers are still evident. Like any investments, property has its upsides and downsides but in Australia, extra taxes and fees associated with owning real estate are kept relatively minimal.

Lot’s of foreign investors are investing in real estate that is associated with the tourism industry and are seeing, not only a healthy rental income but also a fantastic return on their investment over time.

Investment from foreign parties is important to any countries economy. Due to this, Australia has made buying real estate relatively easy. Even though agreement from the Australian Government has to be sought prior to buying after this the process is relatively straightforward.

Whether you are purchasing residential properties or commercial properties to start a small enterprise, Australia will undoubtedably ride the storm for the next few years and will prove to be a good country to invest in for either Australian nationals or foreign investors.

Please see our main site for more resources on investing in the Australian Real Estate market and rainbow beach real estate and rainbow beach real estate

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