Data collected for the 2001 census show that the majority of tenants living in properties managed by real estate agents pay between $200 and $300 a week in rent, compared to owner- managed properties where the majority only pay between $100 and $200 a week.
Sure those renting privately to friends or family may be doing so at a reduced rate, but many investors just didn’t have the market knowledge to get the best return on the investment. I have always believed that a good property manager is essential. While they charge 5-7% of the rent they collect, as with most of the expenses associated with a property investment, agent’s fees and commission are tax deductible.
2001 Census data released by the Australia Bureau of Statistics reported that 26.3% of all properties in Australia were rented. A study I read a while ago suggests that by 2010, and that’s only just around the corner, over 50% of people will be renting for most if not all of their lives.
Although some people may rent as a result of circumstances, many now consider renting a matter of choice. This is great news for us as property investors but it is important for us to own the right type of property – the type that will be in continuous strong demand by tenants in the future.
So why do people choose to rent?
There are many reasons people choose to rent and a lot has to do with lifestyle choices and today’s more mobile society. For professionals in some careers, renting is the only option when their job involves moving frequently to take advantage of career opportunities. Others choose to rent read more
Why do people choose to rent ?
i think it has with the idea that they pay less when they are renting. most people rent because they are not ready yet to go stable. it all depends on their job's stability or if they wanted to stay longer in that place.
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