Buying properties in Sydney is changing. Currently Australia has around 7 million people living in rented accommodation and that represents a huge opportunity for property investors. But what you first must consider before taking the leap into being a landlord is that renters themselves have changed.
In years gone by Australia renters tended to fall into one of two main categories:
- Those people renting while they saved enough to purchase their own place
- Those people on low incomes who would never be able to purchase their own place
However, today we have a new category – the ‘choice renter’; people who choose to rent over settling into paying off their own mortgage.
The 'choice renter'
Some of the important features that tenants want is fairly standard across the categories and across age groups – location, parking and a pet-friendly tenancy, while other wants are much more in line with the emerging choice renters. In order to attract these tenants it is first important to understand them.
Enter the release last month of the Optus’ Renter of the Future study, conducted with McCrindle Research. It highlights some important aspects for those looking at buying properties, especially an investment property in Sydney.
“We wanted to understand the renter and find out who they are. Demographically they’re got punch, geographically they’re got punch and as we’ve found from this technologically they’re amongst the earliest adopters,” said Mark McCrindle, social demographer.
“There’s this idea that the great Aussie dream is to move into a home that you own and if you haven’t done that then the dream hasn’t come true for you. But with generational change that’s just not true. You’ve got a lot of people who are the choice renters because they prefer the lifestyle. And they themselves might be landlords so financially they’re rocketing ahead,” he said.
“Renters comprise nearly a third of Australian households. For the modern Aussie renter technology underpins and has become completely fused with their lifestyle. This group is among the first to jump onto new technologies, keeping abreast of the latest trends and, where possible, the latest devices. Accessing the internet quickly from their new rental property is a must for them,” Mr McCrindle said.
So what exactly is this new type of renter looking for? The study found these were the top 5 lifestyle features renters desired and they are prepared to pay for them:
- Parking (38%)
- Pet friendly home (32%)
- Cable internet access (31%)
- Strong mobile signal (25%)
- Number of power points in a room (22%)
Investment property Sydney
When you’re looking to purchase an investment property in Sydney you should consider more than just location, transportation and rental yield – think about those features that will make your property that much more attractive so that you can ensure that the property is easy to rent so you don’t run the risk of an empty tenancy that you’re still needing to cover the mortgage on.
Before buying an investment property in Sydney, seek professional advice you’re your accountant, financial adviser, mortgage broker and even rental managers so you make a sound decision and investment.