The Rules of Property have changed — you must understand this one key factor

Are you looking to invest in property?

Maybe to take advantage of all the fright in the market, or maybe later in the year when the COVID -19 problems are over?

Well…Property has been quite a forgiving asset over the past few decades but moving forward there are many things that have changed.

You cannot simply adopt a buy and hope strategy any longer.

It all comes down to the way people are now choosing to live.

Here are my thoughts;

When I was younger… (I find myself saying this a lot more lately), it was all about buying a nice house with a white picket fence on a good-sized block of land.

To some extent this is still the case for many buyers, particularly young families.

But there is starting to be a notable shift in the way people are choosing to live and you need to understand this if you want to take advantage of the next property cycle.

It comes down to competing forces at opposite ends of the demographic spectrum.

Younger Home Buyers

Dream House2The priority for the next generations involves instant gratification.

They want to be where the action is and want everything on their doorstep here and now and.

Rather than moving 20km – 30km away from the CBD, they are moving closer in.

They are trading big backyards and houses for balconies, smaller courtyards and lower maintenance living.

Walkability is a key factor in these locations, think;

  • Public Transport
  • Cafes and Restaurants
  • Green Space
  • Boutique shops
  • Cinemas
  • Green space

It all must be within quick easy access by foot.

I see, as I am sure you do, the continual outcry that house prices are not affordable any more etc.

They are in reality, just not in the areas they desire to live in.

Retirees / Downsizers

The later generations priorities have changed also.

It used to be about the see change or tree change, but in reality, it was only small sections of this demographic that made the move.

The majority are staying put, they want to live close to their Doctor or Dentist, their local shops and cafes also and importantly their family.

Many are also choosing still to continue working, albeit at a much slower pace.

They are just selling the larger 4- or 5-bedroom home and moving into something much smaller and low maintenance.

This also allows them a healthier nest egg come full retirement.

So once again, this generation are also staying fairy central and close to where the action us.

The shift is on

More people will continue to want to live in our inner cities.

Location

You need to really understand this key point if you are going to be successful with property over the next decade.

If you continue to buy in outer areas, where there is less demand for property, you are really going to struggle.

20-30 years ago, you were able to take advantage of the emotion factor and the way Aussies wanted to live.

But that is now rapidly changing, and you need to adapt and look for properties in inner to middle ring locations with high owner occupier appeal.

All things being equal, houses will always be preferable in quiet tree lined streets.

We also see huge potential for townhouses and villas in these middle ring suburbs.

They provide quality low maintenance living and are affordable to varying target markets in the right locations.

For apartments, homeowners don’t necessarily want to be paying $6,000+ in Body corp fees in flashy complexes with facilities they will barely use.

They much prefer quieter, boutique blocks with more ample living spaces and something special like a courtyard or balcony with an outlook.

Change Your Strategy

Country Areas Australia

The way people are choosing to live moving forward, is dramatically changing.

As a result, you should also be changing your criteria if you are serious about taking advantage of the next property cycle.

While supply of land in outer areas will remain high, it will be demand that is reduced due to this change.

You could have bought anywhere 20-30 years ago and done “ok” out of property.

But moving forward buying and hoping in these outer areas will be a very slow way to grow your wealth.

Stick to the investment fundamentals of low supply and high demand in our inner and middle ring suburbs and you will reap the rewards.

Now is the time to set yourself up for the next stage of the property cycle with will come sooner than many expect

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

Flat Design Illustration Concept Of Team WorkSure many of the property markets around Australia are performing well, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.

Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Brett Warren

About

Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane


'The Rules of Property have changed — you must understand this one key factor' have 4 comments

    Avatar

    March 26, 2020 MICHAEL CORRELL

    I lived in a regional city for about seven years and found it deathly boring. Didn’t much like the regional life-style.

    Reply

    Avatar

    March 25, 2020 David

    It will be interesting to see if the cities retain their appeal. Now that many people are working from home I think that we’ll see a lot more of it in future, with the flow on effect that companies won’t need the large centralised workplaces that they currently use and consequently the rise of more urban hubs and therefore the lower growth in property values for the inner suburban properties. It may take a while but with advances in communication I believe that it will occur.

    Reply

      Michael Yardney

      March 25, 2020 Michael Yardney

      Good point David – but once through our current challenges, I believe the lifestyle appeal of cities will still win over regional through our current challenges, I believe the lifestyle appeal of cities will still win over regional locations

      Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts