Renters On the Move – Or Not?
An interesting set of data that was released by RP Data showing that the Australian population is not moving around as much as it used. In fact data that goes back to 1981, shows that persons moving to Queensland from other states was the lowest in the last year.
NSW is showing the lowest since the early 1990’s and the reverse is happening for Victoria, which is gaining residents from other states as a faster rate since 2002.
I don’t think it takes a genius to work out that the finance times of the last 3 years has most probably been the cause of most of this slow down given that people are scared to leave their jobs and also people are reluctant to sell their houses in case they do not get enough to make a move worthwhile. Whereas Victoria has been attracting people because of the employment opportunities.
The Result
This all means that renters are staying in premises longer and with this comes a desire to make a place feel like home. Landlords can help tenants in this way and make sure the property is well maintained. If they are good tenants it is worth taking that extra step because it is better to have a good tenant than a bad tenant, I assure you.
Tenants could also be looking for longer leases, 12 months instead of the usual 6 months.
Household Numbers Are Falling
The report also confirms that household numbers are getting smaller with the amount of marriage breakups, the ageing population, singles preference for living alone and it is forecast that these lower household numbers will not change very much.
It is expected that approximately an extra 3 million households will be required by 2031 (that’s only 19 years away!).
Investors should consider the fact that these smaller dwellings will be in high demand by renters but they also need to take into consideration that if letting to the older generation then the properties should be near medical services and shopping, whereas if letting to younger people then nearby employment is a very strong point to take into account.
Obviously as the cities grow larger and larger and the population expands out being near transportation will also be a very important factor.
Knowing these facts will help you when putting together your business plan for your portfolio over the next 10 years and also in helping write your buying criteria.
Filed Under: Featured • Property News
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