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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

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    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

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    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
     
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  3. Gockie

    Gockie Jobseeking! SQL Developer Premium Member

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    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.
     
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  4. datto

    datto Well-Known Member

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    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.
     
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  5. Xenia

    Xenia Adelaide Property Manager Business Member

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  6. macdub

    macdub Active Member

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    hi all,
    how do we find out what percentage of renters/OOs in particular suburb?
    thanks
     
  7. larrylarry

    larrylarry Well-Known Member

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    Someone referred me to census.
     
  8. Marg4000

    Marg4000 Well-Known Member

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    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
     
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  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Big Will and Ace in the Hole like this.
  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    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

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    ABS gives lots of detail. only 2011 at present, but due for another this year.

    Hornsby Demographics (NSW) Local Stats