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The next boom suburb

A New Age, New Wealth Creation

Well, that is the title of a recent article in the Australian Institute of Company Directors April 2011 periodical. Whilst the article, very well written by Mr. Phil Ruthven, Chairman IBISWorld, discusses investment strategy and weighting across various sectors over time, it does raise an interesting and relevant point for Property Investors.

 

The article suggests that investment in property related industry has increased from 3% in 1960 to 11.6% in 2010. For us property investors, it clearly supports the overarching concept that property, as an asset class, is worthy in our investment dollars.

 

No doubt, Mr. Ruthven’s article is discussing the wider issue of investing in businesses within asset sectors, but the data clearly shows a heavier investment weighting in the property sector, over time. This is something that we, mere property investors, always knew. However, it is gratifying to know that expert and highly regarded investment and wealth strategists are including property more heavily in their investment weighting these days.

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