More And More Tenants Are Choosing Inner City Apartments
According to the latest survey on rental trends from Realestate.com.au, demand for inner city apartments continues to be strong and is actually growing. The survey, called the 2014 Tenants and Sharers Report, found that the number of tenants looking for brand new or older apartments had risen from 32% in 2012 to 39% in 2013. The increase in demand was seen mainly in tenants under the age of 35 with incomes of between $50,000 and $100,000. This is good news for anyone interested in investing in property for rental income.
The Australian Property Monitors Rental Report for the end of last year also found that there was a strong continuing demand for apartments over more traditional inner city properties such as terraces. In general older houses, even if they were close in to the city (for example, in desirable inner city locations such as Newtown in Sydney), were taking months longer to find tenants for than existing and brand new apartments.
These Gen Y tenants and those looking to share an apartment also said that finding a suitable apartment in an inner city location was one of their top priorities. The desire to live “where the action is” is an important factor in the property market, making brand new apartments that are situated in an around the major capital cities one of the most attractive options for anyone interested in investing in property. Purchasing an off the plan property in a great location can capitalise on the strong rental demand as well as the capital growth over the long-term.
Brand new inner city developments offer a number of advantages as rental properties, including:
- Higher rental demand among young professionals and higher rental income.
- Because they are new, the properties will require less repairs and ongoing maintenance costs. Low maintenance rental properties are also very popular among young professionals.
- Newer developments tend to include attractive facilities such as swimming pools, recreation areas and rooftop gardens that will add to the value of the property – both in terms of rental income and saleability in the future.
The key to finding a brand new inner city development that can deliver strong rental returns and capital growth is to conduct thorough research as well as getting assistance from experts in the industry. With off the plan properties you can look at the developer and builder’s track record with other similar developments – what are the properties like, how much rent do they attract and what kind of prices are they selling for. Other important factors to consider if are you looking at investing in property include narrowing down the most suitable locations for developments, thinking about your budget and creating a long-term strategic plan. Finally, finding the right property investment company such as Ironfish who can help make sense of some of the more complex aspects of buying an investment property can be crucial to your future financial success.