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

Platini vows to return to soccer after Swiss justice move

May 26, 2018

PARIS — Banned former UEFA President and FIFA vice president Michel Platini says he is planning to return to soccer after Swiss federal prosecutors confirmed he was not being charged in an investigation into possible financial wrongdoing. Platini says in a statement it's "the end of a long nightmare for my family and those close to me." Since September 2015, the former France midfielder had the status of "between a witness and an accused person" in criminal proceedings opened against then-FIFA President Sepp Blatter. No criminal case was ever opened against Platini. The evidence related to Blatter authorizing FIFA to...

Turks feel pinch from currency slide ahead of polls

May 26, 2018

YAVUZLAR, Turkey — Farmer Abdulkadir Cekic was already struggling to make a living, snowed under by a bank loan he took out for the purchase of a 130,000-euro harvesting machine. The tumbling of the Turkish currency, the lira, has hit him hard, considerably increasing the cost of his yearly payments. "This year I have (to pay) 10,000 Euros in installments for the combine harvester," said the barley farmer from this Turkish village near the border with Syria. "It used to be around 40,000 Turkish Lira. Now it's 55,000 Turkish Lira." The lira has lost more than 20 percent of its...

China orders crackdown on large outdoor religious statues

May 26, 2018

BEIJING — China's ruling Communist Party has ordered local governments to better regulate the construction of large outdoor religious statues amid increasing restrictions on religious expression of all kinds. The directive from the United Front Work Department viewed on its website Saturday appears targeted mainly at followers of Buddhism and Taoism, two of China's five officially recognized religions. "The meeting required all localities to take up the regulation of large outdoor religious statues as their top priority in preventing the further commercialization of Buddhism and Toaism," the directive said. Thousands of Buddhist and Taoist temples and shrines, along with mosques...

Man arrested after driver rams into 3 on Oregon sidewalk

May 26, 2018

PORTLAND, Ore. — A driver rammed into three women walking on a sidewalk Friday in downtown Portland, critically injuring one of them, before speeding away and getting arrested within hours of the crash, authorities said. Greg Phillip Porter, 61, is being held at the Multnomah County jail on several counts, including three counts each of attempted murder and assault. Someone called 911 after spotting a blue SUV that matched the description of the vehicle that struck the women near a light-rail station close to Portland State University, police Sgt. Pete Simpson said. Police have not yet determined a motive. Authorities...

Ohtani likely to rejoin Angels' rotation next week

May 26, 2018

NEW YORK — Shohei Ohtani likely will rejoin the Los Angeles Angel's rotation next week. The 23-year-old rookie, the first two-way player in the major leagues in decades, was on track to start Sunday at Yankee Stadium against countryman Masahiro Tanaka, but the Angels said Thursday that Ohtani will miss the turn as part of workload management. "We will wait and see as we get direction from our medical staff and Billy Eppler on when Shohei will be folded back into the rotation," manager Mike Scioscia said Friday, referring to general manager Billy Eppler. "Then he'll throw a light bullpen,...

Search

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