A smaller investment property limits your prospective tenants or buyers right? Yes … A smaller investment property limits your target to Gen Y, Seniors, Retirees, Downsizers, Divorcees, and Widowers. Which ‘limits you’ to one of the biggest slices in the real estate market pie. Although their lifestyles are all quite different, Gen Y, Seniors, Retirees, Downsizers, Divorcees, and Widowers have a lot of basic needs in common. Let’s take a look at what this broad cross section of the community is looking for in a property.
AFFORDABILITY. They’re either at the entry level of the workforce on beginner wages, or they’ve retired from the workforce and are budgeting carefully.
ACCESSIBILITY. Many don’t own a car or drive for various reasons, so their residence must be walking distance to amenities for lifestyle and recreation. Eg. shops, restaurants, entertainment, gym etc.
LOW MAINTENANCE PROPERTY. Plans for the weekend don’t include much in the way of gardening or mowing lawns.
Perth is experiencing a rapid surge in the number of people living solo, which is increasing demand for 1 bedroom urban villas. WA now has the highest rate of solo first-homebuyers in the country, and The Australian Bureau of Statistics has forecast a dramatic rise in the number of sole-occupant households over the next 25 years. Whether they lease or buy; Gen Y, Seniors, Retirees, Downsizers, Divorcees, and Widowers present a big opportunity for small investment property owners. If you’re in the market for one, here are some tips on comparing small investment properties to find the best deal:
COMPARE APPLES WITH APPLES. And 1 bedroom villas with 1 bedroom villas, and square metres with m2 etc.
CHECK OUT THE COMPETITION. If you purchase an apartment in a big complex, you will be competing with all the other apartments in the same block and you may not have as much freedom with the amount of rent you can charge. A small complex of 4 units or so is a good option.
If you’re still not sure what type of property would be appropriate for your situation, ask someone that has experience in property investing. Family and friends with little or no investing knowledge mean well but sometimes they just don’t know! Click here to find out more on why you should be speaking with a property investment expert.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Group is a complete property advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer service in - Financial Planning · Finance Broking · Property Management · Property Sales · Property Investment · Development
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