Are you a property investor or are you thinking about getting started? There is one recently unveiled figure that you need to know, because it means some pretty major things for you.
Currently, there’s lots of talk about housing affordability and it doesn’t seem like the state of housing affordability in Australia is going to ease any time soon. This means that we can expect to see more renters coming to the market in the next few years at the detriment of owner-occupier numbers. But how big is this increase going to be?
There isn’t any way of telling exact figures, however Knight Frank Research & Consulting released a report earlier this year that revealed their expectations. They believe that by 2019/20, New South Wales, Victoria and Queensland will have about 31%, 30% and 33% respectively, of all households privately rented from a landlord.
This is about 5% up on current figures. A 5% shift in rental demand over the next two years is major. With Queensland’s current dwelling figures that is roughly an expectation of 50,000 more households renting which is a huge demand.
The apartment and unit market has come into its own recently as we know with current supply exceeding demand. This will continue to cater to some demographics, but traditional freestanding homes in good areas will increase in demand as this occurs because more and more families will be looking for suitable accommodation and apartments may not fit that model.
So, if you’re thinking about starting in property investment, this is the one figure you need to know. 5% more demand over the next two years. It’s huge. And now is the time to be making the most of the opportunity before house prices rise any further.