Hi all,
I've been interested in reading more and more lately about the ever increasing likelihood that by 2020 and beyond the demand for housing will be coming chiefly from Gen Y, Boomers tending to like the security of owning a downsizer outright with the comfortable ones having a couple of properties for income and X'ers being in the middle quite possibly tasked with looking after the boomers that weren't lucky enough to retire with any money/assets.
In reading a few commentaries on the latest census data it looks to me as though there will be a substantial (in comparison to the current rate) increase in demand for inner and mid ring medium to high density housing from Gen Y, both Australian born and migrants into capital cities, and predominantly renters. This all makes a lot of sense on face value given the possibly enormous cost of running a car in 8 years time but is this really going to be the direction of the Australian property market? I mean will suburban living die as far as a viable investment goes?
On another front is the very real threat of all the boomers that are holding property at the moment looking to cash in as soon as they see any sort of recovery for fear of loosing out further. Does this concern any one else?
My plans were always, and still are, to buy bog standard run of the mill properties on big blocks as close to city centers as financially possible and develop when the cash became available. But this is looking at todays strategies and trends. As far as where the big long term gains/demand will be in 10 years time would it be a better option to be looking at medium density units/townhouses in close proximity to major lifestyle infrastructure? I'm after some thought because at the moment it's looking more and more likely that very soon any "current" ways of thinking are going to be obsolete. Or is it just the nay sayers starting to speak louder at the moment?
Any thought or comments?
Cheers
Kris
Think about where you would live if you found yourself a Gen Y person without assets and struggling with the cost of living. What would be the first budget cut you would make? Food? No? Hanging out with your friends sometimes? No? Medical care? No? Car? Jackpot. It's a big expense that you can avoid if you live near the facilities you need. This does not necessarily mean you have to be within 5km of Melbourne CBD. Perhaps in a fringe suburb of a major regional city. Either way, near shops, public transport, and not silly distances from employment if it applies to your demographic.
I've got a house smack across the road from the shopping centre in Corio and my tenants cheer "look at the location!". They do not need a car because the shops and the doctor's surgery are across the road. A few footsteps from the front door is the busstop so they can go into the centre of Geelong to the cinema, more shops and so on if need be.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi KrisM,
Is this the Dash of Salt article in API mag that you are referring to?
It's not just GEN Y who want to live near 'stuff'. Baby boomers like where they live, thats why they still live there. If we can figure out a way to get them to trade their big blocks for more manageable smaller homes, we might be onto a winner.
Disclaimer, I have 2 sets of aging parents, boomers, they don't want to move from their big 3 bedders on big blocks!
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThat is one of the articles. I didn't really say what I was thinking with my original post. What I mean is, given the likely future trend of higher density housing would it be prudent to buy into existing "quality" (not new) medium density stock, or, big blocks with the view of turning it into medium density given the cost outlay to develop in comparison to just purchasing exactly what the future demand will be in an existing premium location that would require minimal extra outlay (renovation) to meet trends as they emerge.
For example, take $1M. In 10 years time would you have been better off buying 3 x 2 bedroom apartments in say 1km radius of Parramatta CBD (medium density blocks) for $300k each, spend 30K on each to spruce up and keep within demands. or, spend $500k on a property in say St Marys, Penrith, (west) and $500k or there about on adding 2 x 2 bedroom units/villas. Think 10 years on and which scenario would have you better off? and also least risk?
How long is a piece of string?
Demographics are changing and they always change as well. I am a GEN Y but I live in a 50 year old home, almost paid off and on a 900 Square block, No intentions of moving.
But on the other hand most of my friends who are in the range of 26 to 28 years old are all moving to suburbs like Taylors hill in Melbourne, Blocks sizes are about 400, Bigger house and smaller blocks.
Every suburb almost (only using the west of Melbourne as an example) has a shopping centre, schools, train stations are only a small bus trip away. But are they buying or renting? A bit of both, allot of my friends have bought on the basis that this is their "dream home" and I have some friends who prefer to rent because they don't want to be committed to a loan.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
