Millennials are an incredibly fast-growing part of the Australian landscape. As such, they're starting to dominate the renting community – something every investor needs to take into account.
Looking to attract these younger tenants? You can be forgiven for thinking that all this generation is interested in is property in the big cities. However, thanks to technology and the emergence of the "mobile workforce", the need to live downtown is no longer a must.
If you are one of the many Australians looking to start investing in property, here are some things you need to know about why it's no longer necessary to look solely at the central suburbs:
The mobile worker is a remote worker
It's no secret that technology is having a transformative effect on the way we work. Cloud computing, video calls, online chat and even virtual reality has redefined the old "9-to-5" mantra. Now, more people have the option of switching between working from home and the office like we've never seen before.
Without the need to commute every day to work, many young people are finding themselves with a greater degree of freedom over where they live and aren't as tied to the central suburbs as they were several years ago.
A PwC report on millennials in the workplace found that this flexibility or "work/life balance" is the second most important deciding factor in career choice for Generation Y. With millennials putting pressure on employees to adopt a flexible work environment, it's likely we'll see a greater percentage of mobile workers in the Australian industry in the near future.
What does this mean for property investors?
Areas that provide a more well-rounded lifestyle will become increasingly attractive for millennials.
No longer tied to the office and with the freedom to work remotely, areas that provide a more well-rounded lifestyle away from the crowds will become increasingly attractive for millennials.
According to a McCrindle study of the future renter, a quarter of tenants will be what's known as "tech homeseekers" – tenants who favour technology and connectivity, yet are looking for stability in an area they love, of which, millennials make up the majority. Rather than living downtown in cramped apartments, these renters will be looking for opportunities in less central areas. Now might be the perfect time to invest in preparation for them.
With the right advice you can be sure to find the right investment property, regardless of the type of property you are looking for. Get in touch with our team at the REIN Group today to find out how we can help you make the right investment.