As part of the “checks and balances” that we do when seeking out good investment opportunities, we look closely at the demographics of the area we’re researching.
Demographics tell us who lives in the area –
- average age and income,
- whether there is a majority of young singles, families or empty nesters,
- whether it’s more of a blue collar or white collar worker area,
- if it’s predominantly renters or owner occupiers,
- plus a whole lot more.
Once we determine whether the location has good potential for rental yield and capital growth, we then look at the property to make sure it matches those demographics.
We look at the number of bedrooms and bathrooms, whether there is co-working space, outdoor living areas, well thought out communal space, etc.
The demand for these factors will change depending on the location and the demographics.
If you’re looking in a regional town, you’re far more likely to want a three bedroom townhouse or freestanding home, with two bathrooms, a lock up garage and green space – perfect for a young family.
If you’re looking in inner city Melbourne, we need to look at the “chic factor” because style attracts tenants. One and two bedroom apartments will be highly sought after. If it’s two bedrooms, then having two bathrooms is ideal because flatmates won’t need need to share bathrooms. Communal living, cooking and dining areas, gyms, shared workspace are also high on the list of tenant requirements.
Outdoor living is prime in Queensland – whether it’s large balconies, perfectly suited for outdoor dining, or swimming pools, exercising areas and green space. The number of bedrooms and bathrooms will be determined by the exact location and demographics of the area.
With new work from home options, studies are popular in homes and apartments and co-working space within apartment complexes is now highly sought after in all city locations, particularly Newcastle. Renowned developers Thirdi, who we have worked with for years have included a co-working space in their next development in the heart of Newcastle in response to buyer demand.
Three bedroom properties are gaining popularity in many areas as the third bedroom can be turned into a home office or gym if it’s not needed as a bedroom.
The final thing we consider with the demographics of a particular location is the budget. Is the rent affordable according to those demographics?
There are lots of boxes we need to tick before recommending a property to you and we do everything we can to make sure it all adds up for a good return on investment.
If you’re ready to explore your investing options, we’d love to arrange a time to chat.