2020 trends for Rental Investors
Category Articles for Investors
It has been clearly shown that we are a reactive society, often driven by sentiment rather than empirical data. The upside of this is that movements like #imstaying and #strongertogether make a real difference in how we feel and even invest in the future.
So how do you find relevant info without opening 11 "To Let" and "Residential Rental" tabs on Google? Well, we've done a bit of that for you.
Whether you are a first-time investor or are seasoned Buy-to-Let landlord, below is some insight into the 2020 Property Investment and Residential Rental markets.
Millennials carry clout.
Aged between 23 to 38, this market is the largest demographic of tenants. This means that millennial tenants' expectations and desires carry market clout and, as they are unique to any other tenant market segment, it is important to understand the millennial mindset.
More than 50% of millennials surveyed are concerned with Environmental, Social and Governance issues as opposed to 25% of Gen Xers (38-53). Millennials are more inclined to rent where they feel that the property/development/community is greener (solar geysers, gas stoves, recycling facilities) and has more community involvement or communal living opportunities (cafes, clubhouses, parks and communal veggie gardens).
Connectivity, both digitally and physically in terms of being close to schools, shops and work is important, while rental home size and finishes are less important. Millennials invest in travel and it is seen as environmentally and ecologically responsible to minimize their home's carbon footprint.
Additionally, it's estimated that up to 64% of millennials have pets!
Baby boomers live longer
It is estimated that by 2029, there will be more middle-income earning baby boomers (aged 75 or older) than ever before in history. A huge percentage of these active seniors will have too much income for government support, but too little to handle housing and medical costs privately for very long. They'll be the most diverse, educated generation of seniors ever.
Throw in ever-expanding life expectancies and high demand for lifestyle appropriate living facilities and you have a new and very attractive market segment.
Much like Millennials, a smaller rental home is more attractive. External add on's of assisted living, community pursuits and especially safety are what will be expected.
These two main talking points in our industry and can be cleverly catered to when considering new investments. Small changes can be made to existing flats and houses to be more appealing as these long-term trends become the market norm.
Follow up articles will deal with the numbers relating to these markets as well as practical solutions and workarounds for optimizing existing rental portfolios.
We're here to help keep you on the leading edge 😊
Author: Nikita Lotter