Percent of renters - capital growth

Discussion in 'Investment Strategy' started by Cabricabri, 5th Oct, 2020.

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  1. Cabricabri

    Cabricabri Well-Known Member

    Joined:
    1st Dec, 2018
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    Location:
    Melbourne
    I’ve noticed that the percentage of renters is nearly 60 % in Brunswick.

    I was wondering if that value hinders capital growth prospects.

    What % is ideal for an investment property?

    I assume that a very low % makes it harder to find tenants? Am I right ?
     
    Cabricabri, 5th Oct, 2020
    #1
  2. Trainee

    Trainee Well-Known Member

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    Australia
    Owners dont live in the property because they cant find renters. They live in it because they want to.

    usually capital growth rises as the % of renters fall (% of owner occupiers rise). Oo’s dont look at rental yield and are more likely to overcapitalise. And there are many more oo’s than investors.

    a low renter % might be because owners want to live there, and they dont rent out the properties. Nothing to do with tenant demand.
     
    Last edited: 5th Oct, 2020
    Trainee, 5th Oct, 2020
    #2
  3. VB King

    VB King Well-Known Member

    Joined:
    8th Jul, 2015
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    Location:
    St Marys
    Owner occupiers are price makers, investors are price takers.

    Because owner occupiers buy with emotion, investors are far more rational.

    So you want a good proportion of owner occupiers in your area to drive price.
     
    VB King, 5th Oct, 2020
    #3