Baxton Investigates Perma-Renters: Those Who Rent for Life

In conclusion, property ownership is an individual proposition. Where once there was a stigma ascribed to renting, times have certainly changed, renting is the new black.

Hobart, Australia - December 7, 2017 /NewsNetwork/ —

To those of us who are over the age of 35, the idea of never owning a home may seem ludicrous – but that’s just what may happen to the millennial generation. The much-publicised housing boom has driven property prices up: good news for investors hoping to rent out a property in Hobart and those who already own a property elsewhere, but bad news for those contemplating the purchase of a new home.

Whether we like it or not, the cost of buying a house has increased, while increases in earnings have failed to match that rise. Professor Terry Burke of Swinburne University says that in the eighties, young householders could expect mortgage repayments to represent about 17 percent of their income. But today, the figure stands at around 25 percent. As for single-income households, most cannot expect to occupy a home as roomy as the one they grew up in – unless they rent.

Beyond Financing: Young Australians On The Move

Australians in their twenties and thirties are more likely to relocate than other age groups are, says the Australian Bureau of Statistics. With most young Australians being well aware that career changes, or even relationship changes, may lead to relocation, the idea of buying a home becomes less attractive. They’re also starting families later – and that means less inclination to tie themselves to home ownership.

Baxton CEO Kellee Pennicott says, “Without extensive changes in the property market, it seems likely that we can expect an increase in the number of perma-renters.” True, owning a home is ultimately cheaper than renting – but one first has to get through twenty years or more of mortgage repayments plus the costs and effort of maintaining a property. “For many, renting, even if that means renting for life and having nothing to show for it afterwards, simply seems like a better option – at least in the short to medium term” Pennicott said.

Potential Perma-Renters Are Great Tenants

The growing pool of people seeking affordable rental accommodation without the commitment to an owned home is benefitting those who are already property owners. Some will use rental to cover all or most of a mortgage, resulting in a property to which no debt is attached later on. Others will already have paid in full, and will see the income they get when they rent out a property in Hobart as an extra cash injection.

Meanwhile, it’s easier to be picky about just who will be occupying that valuable property. While millennials may be likely to move more than older generations, they’re also likelier to be stable and reliable tenants. After all, rental references are essential when applying for a new rental contract.

Low Vacancy Rates

“This phenomenon has increased rental demand to a point where we simply do not have enough rental stock in the suburbs of Hobart, West Hobart, South Hobart, North Hobart, New Town, Moonah, Glenorchy, Sandy Bay, Dynnyrne, Tolmans Hill, Kingston, Kingston Beach, Tinderbox, Blackmans Bay, Taroona, Lindisfarne, Howrah, and Sorrel” Pennicott said. When demand outstrips supply the outcome is upward pressure on rental prices. “This is a great outcome for our property owners who are enjoying fully maximised investments with premium returns and no vacancies.” 

Adapt Or Die

In these changing times, what worked yesterday doesn’t necessarily work today. Property management firms across Australia are finding new ways to engage with their client base. Many use social media such as Facebook, Google+, Twitter, Instagram, LinkedIn and even Pinterest to engage and interact with them.

Rent Out A Property In Hobart: Passive Income?

Getting income from your property investment in Hobart may seem like a good source of passive income, and is – but not if you try to do everything yourself. Fortunately, a good property management company can handle all the hard work that comes with being a landlord. And for those with the long view in mind, investing in, and renting out a property in Hobart is sure to reap dividends. 

Contact Info:
Name: Baxton Media
Email: media@baxton.me
Organization: Baxton Property Management Sandy Bay 7005
Address: 147 Sandy Bay Road , Hobart, Tasmania 7005, Australia
Phone: +61-3-6220-1900

For more information, please visit https://pm7005.baxton.me

Source: NewsNetwork

Release ID: 272530

More News From thewitnessdaily.com

Hungary's PM says EU leaders did 'battle' over migration

Dec 15, 2017

BRUSSELS — Hungary's prime minister used war metaphors Friday to describe the scale of the division over migration issues in the European Union as countries in central and eastern Europe held out against taking in more refugees. In a Facebook video subtitled in English, Viktor Orban colorfully described a dinner at an EU summit in Brussels that apparently went until past midnight. Smiling, he said: "It's 12:40 a.m. We struggled with each other til now. It was close combat, a type of political close combat." He said the Poles, Hungarians, Czechs and Slovaks "did well in battle" against those wanting...

EU leaders launch new phase in Brexit talks

Dec 15, 2017

BRUSSELS — The European Union cleared the way Friday for Brexit talks with Britain to move onto the second stage, which will involve wide-ranging — and potentially far trickier — discussions on their future relationship and trade. The 27 leaders authorized the move, almost nine months after Britain triggered the two-year mechanism by which it will leave the bloc. "EU leaders agree to move on to the second phase," EU chief Donald Tusk said on Twitter. Tusk, who is EU Council President, also congratulated British Prime Minister Theresa May in his tweet. Since March, the EU side has been marked...

UN experts say Sri Lankan detainees denied basic rights

Dec 15, 2017

COLOMBO, Sri Lanka — A group of United Nations human rights experts says Sri Lanka has yet to respect individual rights, with people kept in custody for excessive periods pending investigations, and reliance on confessions that are often extracted under torture or duress. A three-member delegation of the U.N. Working Group on Arbitrary Detention concluded a 10-day visit to the island nation on Friday. They told reporters that individuals are being deprived of their rights in a range of facilities such as police stations, prisons, open work camps, centers for juveniles, mental health institutions and rehabilitation camps for former combatants...

Zimbabwe ruling party meets to seal Mugabe's fall from grace

Dec 15, 2017

HARARE, Zimbabwe — In an open space that Zimbabwe's ruling party has called Robert Mugabe Square, delegates gathered Friday to seal the fate of a man they had revered for decades but removed from power in dramatic scenes last month. Emmerson Mnangagwa has already been inaugurated as the new president and party leader, replacing Mugabe, who had led the party since 1975 and the country since independence from white minority rule in 1980. Friday's ZANU-PF party meeting is the final step in Mugabe's fall from grace after the military put him under house arrest, hundreds of thousands rallied in the...

Ex-Russian minister jailed for 8 years over $2 million bribe

Dec 15, 2017

MOSCOW — Russia's former economics minister was handed an eight-year prison sentence Friday after being convicted of accepting a $2 million bribe from President Vladimir Putin's top associate. The case against Alexei Ulyukayev has been widely seen as part of infighting between Kremlin clans. Ulyukayev was a prominent member of a group of liberal-minded Cabinet members, while his nemesis Igor Sechin is the most prominent representative of the hard-line flank of the Russian elite. Sechin heads Russia's largest oil producer, Rosneft, and his clout seconds only that of Putin. Ulyukayev was detained a year ago at Rosneft's headquarters following a...

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH