Baxton Investigates Perma-Renters: Those Who Rent for Life

In conclusion, property ownership is an individual proposition. Where once there was a stigma ascribed to renting, times have certainly changed, renting is the new black.

Hobart, Australia - December 7, 2017 /NewsNetwork/ —

To those of us who are over the age of 35, the idea of never owning a home may seem ludicrous – but that’s just what may happen to the millennial generation. The much-publicised housing boom has driven property prices up: good news for investors hoping to rent out a property in Hobart and those who already own a property elsewhere, but bad news for those contemplating the purchase of a new home.

Whether we like it or not, the cost of buying a house has increased, while increases in earnings have failed to match that rise. Professor Terry Burke of Swinburne University says that in the eighties, young householders could expect mortgage repayments to represent about 17 percent of their income. But today, the figure stands at around 25 percent. As for single-income households, most cannot expect to occupy a home as roomy as the one they grew up in – unless they rent.

Beyond Financing: Young Australians On The Move

Australians in their twenties and thirties are more likely to relocate than other age groups are, says the Australian Bureau of Statistics. With most young Australians being well aware that career changes, or even relationship changes, may lead to relocation, the idea of buying a home becomes less attractive. They’re also starting families later – and that means less inclination to tie themselves to home ownership.

Baxton CEO Kellee Pennicott says, “Without extensive changes in the property market, it seems likely that we can expect an increase in the number of perma-renters.” True, owning a home is ultimately cheaper than renting – but one first has to get through twenty years or more of mortgage repayments plus the costs and effort of maintaining a property. “For many, renting, even if that means renting for life and having nothing to show for it afterwards, simply seems like a better option – at least in the short to medium term” Pennicott said.

Potential Perma-Renters Are Great Tenants

The growing pool of people seeking affordable rental accommodation without the commitment to an owned home is benefitting those who are already property owners. Some will use rental to cover all or most of a mortgage, resulting in a property to which no debt is attached later on. Others will already have paid in full, and will see the income they get when they rent out a property in Hobart as an extra cash injection.

Meanwhile, it’s easier to be picky about just who will be occupying that valuable property. While millennials may be likely to move more than older generations, they’re also likelier to be stable and reliable tenants. After all, rental references are essential when applying for a new rental contract.

Low Vacancy Rates

“This phenomenon has increased rental demand to a point where we simply do not have enough rental stock in the suburbs of Hobart, West Hobart, South Hobart, North Hobart, New Town, Moonah, Glenorchy, Sandy Bay, Dynnyrne, Tolmans Hill, Kingston, Kingston Beach, Tinderbox, Blackmans Bay, Taroona, Lindisfarne, Howrah, and Sorrel” Pennicott said. When demand outstrips supply the outcome is upward pressure on rental prices. “This is a great outcome for our property owners who are enjoying fully maximised investments with premium returns and no vacancies.” 

Adapt Or Die

In these changing times, what worked yesterday doesn’t necessarily work today. Property management firms across Australia are finding new ways to engage with their client base. Many use social media such as Facebook, Google+, Twitter, Instagram, LinkedIn and even Pinterest to engage and interact with them.

Rent Out A Property In Hobart: Passive Income?

Getting income from your property investment in Hobart may seem like a good source of passive income, and is – but not if you try to do everything yourself. Fortunately, a good property management company can handle all the hard work that comes with being a landlord. And for those with the long view in mind, investing in, and renting out a property in Hobart is sure to reap dividends. 

Contact Info:
Name: Baxton Media
Email: media@baxton.me
Organization: Baxton Property Management Sandy Bay 7005
Address: 147 Sandy Bay Road , Hobart, Tasmania 7005, Australia
Phone: +61-3-6220-1900

For more information, please visit https://pm7005.baxton.me

Source: NewsNetwork

Release ID: 272530

Latest News

The Latest: WR Antonio Brown taken to hospital

Dec 17, 2017

The Latest on the NFL's 15th Sunday of the regular season (all times Eastern): 6:02 p.m. The Pittsburgh Steelers will have to protect their lead over the New England Patriots without wide receiver Antonio Brown. The NFL's leading receiver left in the second quarter with a left calf injury. The team says Brown was taken to the hospital for further evaluation and will not return. Roethlisberger threw touchdown passes to Eli Rogers and Martavis Bryant as the Steelers took their first lead over the Patriots since 2011. Pittsburgh held the ball for nearly 20 minutes in the first half, keeping...

McCain returning home to Arizona, will likely miss tax vote

Dec 17, 2017

WASHINGTON — Republican Sen. John McCain is returning home to Arizona after being hospitalized for the side effects of his brain cancer treatment and likely will miss a crucial vote on the GOP tax package, President Donald Trump said Sunday. Trump told reporters he had spoken to McCain's wife, Cindy, after her husband had spent about a week at Walter Reed National Military Medical Center in Maryland. "They've headed back, but I understand he'll come if we ever needed his vote, which hopefully we won't," Trump said after returning to the White House from Camp David. "But the word is...

The Latest: 'Celebration of Life' for San Francisco mayor

Dec 17, 2017

SAN FRANCISCO — The Latest on the funeral of San Francisco Mayor Ed Lee (all times local): 3 p.m. Family members, friends, politicians and San Francisco residents have packed City Hall to remember Mayor Ed Lee, who died last week at age 65. Among those scheduled to attend Sunday's public celebration are California Lt. Gov. Gavin Newsom, U.S. Minority Leader Nancy Pelosi and Sen. Dianne Feinstein. Hundreds of people had lined up to get in by the early afternoon. An overflow crowd is expected for those who can't fit inside the tight quarters of City Hall. The event is streaming...

SpaceX capsule back at space station with pre-Christmas haul

Dec 17, 2017

CAPE CANAVERAL, Fla. — A recycled SpaceX capsule is back at the International Space Station, just in time for Christmas. NASA astronauts used the space station's big robot arm to grab the Dragon capsule out of orbit Sunday. It's the second visit for this particular supply ship, which made a delivery for NASA back in 2015 as well, and only the second time a Dragon has had a repeat performance 250 miles up. "It's a great day to see Dragon back at ISS again," Mission Control radioed. Replied spaceman Joe Acaba: "It's a beautiful spacecraft, and we're looking forward to...

'The Last Jedi' opens with $220M, 2nd best weekend all-time

Dec 17, 2017

NEW YORK — "Star Wars: The Last Jedi" will happily settle for second. Rian Johnson's second installment in the third "Star Wars" trilogy rocketed to a debut of $220 million at the North American box office, according to studio estimates Sunday. That gives "The Last Jedi" the second-best opening ever, slotting in behind only its predecessor, "The Force Awakens." The Disney blockbuster became just the fourth film to open above $200 million domestically. Aside from "The Force Awakens" ($248.8 million), the others are "The Avengers" ($207.4 million) and "Jurassic World" ($208.8 million). Accounting for inflation, the debut of 2012's "The...

Search
Financial Markets

About Us

Deck Biz is an intelligent platform providing international and regional business news updates. You won’t get these insights elsewhere other than Deck Biz.

Contact us: sales@deckbiz.com