Have you ripped open an electricity bill recently? I recently received mine, and I calculated that it’s almost doubled in the space of four short years.
So I have to admit, it comes as little surprise to me that more and more Australians are choosing to share their accommodation with others, rather than brave the concept of managing the escalating cost of living on their own.
New figures from online share accommodation search service Flatmates.com.au show that the number of listings for single rooms for rent (within a larger home, with at least one or more other residents) in Brisbane shot up 140% over the first quarter of 2015.
This increase in listings was accompanied by an increase in asking rents, which inched up from around $182 to $195 per week.
The message for investors is clear: single-person households and the trend towards smaller housing may be gaining traction, but don’t underestimate the draw of living in a more sociable environment.
That said, it’s imperative that you research your market extensively to ensure that the type of property you buy matches the tenant profile of the neighbourhood you’re investing in.
Is the area full of single university students? Great! These types of tenants prefer to congregate in groups, so look for three-bedroom townhouses with plenty of bathrooms, located close to universities and public transport.
Is the area full of mature Australians or single middle-aged professionals? Great! These types of tenants are often more comfortable living on their own in well-serviced, high quality apartments that deliver all the modern conveniences they’ve come to expect.
Remember, there is never a ‘one size fits all’ solution when it comes to property investing. This is why extensive due diligence is the only clear, proven strategy towards landing a quality investment that has the best chance of delivering long-term profits.
Til next time, happy investing!