I've long thought that real estate in Australia needs to embrace change.
We've been aspiring home owners for a long time. One of the higher ones in the western world I believe. It's quite a cultural thing here.
However, people in Europe and the US are very used to renting. Renting for generations it seems.
I've been around the rental game for quite a while. Many people rent until they can buy although I've noticed changes over the years. Most renters won't rent a cheap place any more. Unless they absolutely have to .
Most renters that are saving for their own place still want a better quality place. They are prepared to sacrifice a bit of saving for better living conditions while they save.
It's probably a generational change I guess.
Then there's some longtermers that just like to rent. Single mums in particular. If you provide a decent place and maintain it well, they are very happy to rent. Their motherly instincts kick in of course. They want to be confident that they can rent for a long time so that the home environment remains stable for their kids.
They also love the fact that things get fixed quickly. It's a very common comment.
Consequently, they make great tenants once the relationship is kind of established.
I have also noticed this trend with older tenants. They are looking for stability and maintenance.
I reckon now that super is compulsory, we might see more and more people rent. They can move around if they choose to every few years. Change cities etc.
It means they can live in better places than they could have if they were buying.
In the knowledge that as long as they continue to contribute to super, they will be right when they retire.
