Retirees / Downsizers
The later generations’ priorities have changed
also.
It used to be about the sea change or tree change,
but in reality, it was only small sections of this demographic that made the
move.
The majority are staying put, they want to live
close to their Doctor or Dentist, their local shops and cafes also and
importantly their family.
Many are also choosing still to continue working,
albeit at a much slower pace.
They are just selling the larger 4- or 5-bedroom
home and moving into something much smaller and low maintenance.
This also allows them a healthier nest egg come
full retirement.
So once again, this generation is also staying
fairly central and close to where the action us.
The shift is on
More people will continue to want to live in our
inner cities.
You need to really understand this key point if you
are going to be successful with property over the next decade.
If you continue to buy in outer areas, where there
is less demand for property, you are really going to struggle.
20-30 years ago, you were able to take advantage of
the emotion factor and the way Aussies wanted to live.
But that is now rapidly changing, and you need to
adapt and look for properties in inner to middle ring locations with high owner-occupier appeal.
All things being equal, houses will always be
preferable in quiet tree-lined streets.
We also see huge potential for townhouses and
villas in these middle-ring suburbs.
They provide quality low maintenance living and are
affordable to varying target markets in the right locations.
For apartments, homeowners don’t necessarily want
to be paying $6,000+ in Body corp fees in flashy complexes with facilities they
will barely use.
They much prefer quieter, boutique blocks with more
ample living spaces and something special like a courtyard or balcony with an
outlook.
Change Your Strategy
The way people are choosing to live moving forward
is dramatically changing.
As a result, you should also be changing your
criteria if you are serious about taking advantage of the next property cycle.
While the supply of land in outer areas will remain
high, it will be a demand that is reduced due to this change.
You could have bought anywhere 20-30 years ago and
done "ok” out of property.
But moving forward buying and hoping in these outer
areas will be a very slow way to grow your wealth.
Stick to the investment fundamentals of low supply
and high demand in our inner and middle-ring suburbs and you will reap the
rewards.
RealRenta has all the tools that a property manager
has, but at over ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a
week to manage your rental property
RealRenta also has a free vision, so why not check it
out
Jason Gwerder
Thursday, 15 April 2021
