Determining the next property growth sector
12th Dec 2009
Changing demographics of the local population play a factor in which property types will increase in demand and therefore value.
For the first time in nearly 100 years, unmarried Australians are in a majority, and 25% of households contain only one person (over 2 million people live on their own), up from 14% in 1971. According to the Bureau of Statistics, by 2013, couples without children and people living on their own will make up the vast majority of families living in Australia, and this means that, moving forward, there will be less demand for larger 4 bedroom bedroom homes further out from the city.
Smart investors should seek a property that ensures good rental return, cash flow and attracts good quality tenants. They also need to be aware of long term capital growth but understand it's not just about the locality - the property itself is so much more important. As the trend is clearly leaning toward smaller families and people living singularly, investors would be well advised to consider investing in units, which is where the demand will increase.
Already inner city areas in Brisbane are experiencing a strong move toward single person and households containing couples. The majority of households in New Farm consist of couples without children - over 60% - and nearly 75% of dwellings in the area are units. In nearby Kangaroo Point, over 57% of households in this area are comprised of couples without children, and 23% are couples with children. Over 67% of Newstead households consist of couples without children and a further 20% are single person households.
The best time to buy is when you can afford to - that is without compromising your lifestyle, but you need to buy the best property you can within your price range.
Affordability is different for everyone, but you need to know that you can hold on to the property through good and bad times and reap the long term benefits without feeling stressed.