It doesn’t matter if you’re a first-time investor or someone building on an extensive property portfolio, it pays to know the market.
While rental markets vary significantly, a report from the Bankwest Curtin Economics Centre (BCEC) has found common priorities among renters when it comes to choosing a property, particularly an affordable one.
The BCEC Housing Affordability Report, ‘Keeping a Roof Over Our Heads’, reported the housing experiences and affordability perceptions of around 4,300 people in New South Wales, Queensland and Western Australia.
It drilled into renters’ and homeowners’ decision making processes, providing rich insights for those about to embark on a new build, especially an investment.
The report found people want:
1. Location
People were prepared to sacrifice home size, outdoor living, bedrooms and bathrooms and just about anything to live in the area they desired. That means you should consider a popular location before a bells-and-whistles home.
2. Proximity to work or transport
More people surveyed wanted to walk to work, while many rated lower commute times as highly desirable. West Australians were particularly averse to commuting times of more than 20 to 30 minutes.
3. Amenities
Perceptions of housing affordability are influenced by a range of factors not just dollars. The report found neighbourhood characteristics like amenities, safety and security were the third-most important criteria when deciding where to buy or rent in Western Australia in particular.
4. Year-long leases
Offer yearly leases as the majority of renters stated they preferred 12-month fixed term leases over a two or five year rentals.
5. Diverse housing options
Don’t just build or buy a 4x2 home. Perceptions of ‘affordability’ appear to be affected by the diversity of housing available. Investors who offer renters ‘something different’, particularly smaller and more affordable rentals, might just stand out in the market.
Read the full BCEC Housing Affordability Report report here.
Please note: This article has not been prepared, nor endorsed, by BankWest Curtin Economics Centre. It is a third-party summary and review of the content in the report titled Housing Affordability Report. The article is provided as information only.
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