Join Australia's most dynamic and respected property investment community

How beneficial is a high owner occupied suburb?

Discussion in 'General Property Chat' started by Seal, 31st May, 2016.

  1. Seal

    Seal Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    163
    Location:
    NSW
    If i understand this rightly, a suburb that has more owner occupied houses is better since OO are more willing to look after their places, and also are more willing to pay a premium on a house since they have an emotional attachment to it (cf an investor who is only interested in the bottom line).

    How beneficial do you think it is in a suburb having say 30% renters, compared with another suburb having 50% renters. and the latter is slightly lower socioeconomically.
     
  2. ashish1137

    ashish1137 Well-Known Member

    Joined:
    12th Sep, 2015
    Posts:
    309
    Location:
    Sydney
    Good Thread I'd say. 30 % is the average renter statistics i think.

    Lesser are the renters, lower is the suburb to be fluctuated in rental price.
    The demand amongst families to buy and rent will always be high.
    The rents in turn will always be high.
    Families tend to stay near other amenities and good schools.
    So, schools nearby will definitely be good.

    Due to high demand, houses will be sold at a premium.

    Alternatively, It can also be a case that the suburb is too far from cbd and no one wants to rent.

    You need to look for signs.

    Regards
     
    Seal likes this.
  3. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,927
    Location:
    Sydney
    In my old suburb there would not have been too many renters as the rental yield would have been crap! Indeed, i'm selling the old PPOR because the yield would be roughly 2.5%. The suburb is very much dominated by OOs.
    However, its a very desirable area for an OO home, its very green, leafy, quiet, peaceful and family friendly with good schools nearby.

    On the flipside, it doesnt rate so highly transport wise, which possibly is more important when a tenant is looking for a home to live.
     
    Seal likes this.
  4. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,392
    Location:
    Mt Druuiitt
    Look, if you got an area full of OO they will pick on and blame every little issue on the renters. It's human nature. The haves vs the have nots.

    Someone's cat goes missing - they'll blame some innocent renters 'cross the road who have a BBQ and some lounge chairs on the front lawn. Lets not even mention the car wreck on the footpath.

    Somebody graffiti's "OO suck" on a colourbond fence in an alleyway - they'll blame the renters.

    Nah, I leave those expensive OO areas alone and just invest in the Druitt where everyone is more equal. Don't upset the equilibrium.
     
    ashish1137 and Blueskies like this.
  5. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    Rental and sale demands are usually much higher in areas where the owner occupier ratio is higher.

    Investments that rely on other investors to purchase them as an exit strategy are not really a good investment. More like a gamble.
     
    Seal likes this.
  6. macdub

    macdub Active Member

    Joined:
    23rd Jun, 2015
    Posts:
    36
    Location:
    Melbourne
    hi all,
    how do we find out what percentage of renters/OOs in particular suburb?
    thanks
     
  7. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,507
    Location:
    Sydney
    Someone referred me to census.
     
  8. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    925
    Location:
    Qld
    The number of rentals in any area can fluctuate over time.

    Around 10 years ago, 7 out of 8 of our immediate neighbours were renters. Of those same 8 houses, only 1 is now rented.

    One of our successful IPs was bought in a complex with over 60% owner occupiers. By the time we sold, the complex was 95% rented.
    Marg
     
    Barny likes this.
  9. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,772
    Location:
    Sydney
    Big Will and Ace in the Hole like this.
  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    Nice tool.
    Only 10% of our PPOR suburb are renters.
    More reason every 2nd house has has a major reno lately.
    Brings up values when home owners are spending money.
     
  11. Seal

    Seal Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    163
    Location:
    NSW
    ABS gives lots of detail. only 2011 at present, but due for another this year.

    Hornsby Demographics (NSW) Local Stats