What Renters Want
Identifying the favourite options with renters gives investors a head start..
This isn’t as easy as it looks. Families who rent, older people and single and couple members of Generation Y want different amenities. And, because of affordability issues, tenants will favour some areas over others.
If you’re looking to buy an investment property, it’s important to look beyond broad residential vacancy rates. For example, renters under the age of 35 often share accommodation so that they can afford to live in preferred locations. Added to this, tenants of all ages are leaving lesser quality properties, or staying in this accommodation on increasingly shorter leases, and switching to quality, well-maintained properties.
Where are Noosa’s rental hot spots? Noosaville, Sunshine Beach and Noosa Heads are the leaders of the pack, according to Robert James Realty Head of Department, David Denny. Tewantin is currently experiencing a shortage of stock suitable for families, demand is high and proces are rising!
The properties that gain the most interest are well presented, fenced or secure and easy to maintain. Properties that have a pool are often extremely popular and can add value to the rental asking price – but pool maintenance costs need to be considered in that mix as a possible deterrent.
A veritable smorgasbord of factors comes into play in making an area popular with tenants. Affordability, desirability and access to lifestyle attractions, as well as access to schools, shops and other amenities are just some of the drivers of demand.
What should investors look for?
Being able to identify transient areas is critical. Richard Reed, who lectures in real estate and property at Deakin University, says because renters typically rent in the short to medium term, it’s best to focus on areas where residents move every couple of years, rather than every decade or so.
Some Extracts of the content in this article were sourced from The Sydney Morning Herald, Sept, 2013.