Hi all,
Let's put supply and demand aside for the moment.
What are the 3 top drivers of how much someone will pay in rent?
Rail?
Shopping Centres?
Schools?
The house itself ie. No of bedrooms etc.PJ
Proximity to place of work, depth of pockets, necessity. ie I will pay more to live closer to work & not commute (no additional out of pocket expense). If I have a well paid job, I can afford to pay more. If I am desperate for accommodation ie need to move, I will pay more for available premises rather than being out on the street.
1. Demand – If other people are willing to pay more to live in that area that pushes the prices up. If more people want to live in the area then it pushes prices up
2. Supply – If there is too much supply (like loads of unit/houses) then renters can pick and choose and bargain. If there is a low supply and lots of people looking to rent then the renters can't bargain because they have less choice.
3. Quality of Residence – This includes how nice the place is, how light, does it have a new kitchen/bathroom, does it have inbuilt robes, does it have a good view or close to amenities?
Hope that helps you understand some of the big driving factors.
Ryan McLean | On Property
http://onproperty.com.au
Email MeSmaller, property specific factors such as allowing pets can also command a higher rental return. You'd be surprised at what the words "pets considered" can achieve.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I have never rented a place.
I am trying to understand why someone would rent so I can begin to understand what type of property would command better rent.
Understanding this will mitigate the risk on the cashflow which allows me to keep control of the property in the first place.
I am guessing their are different types of renters with different types of priorities.
Has anyone seen a diagram or read an article which explores these factors. Or, is it as simplel as saying: Close to transport, close to shopping centers, close to schools and your set?
PJ
I can’t remember which of the management theorists (Maslow, Hertzberg….) who came up with the ‘hierarchy of needs’ ie food, shelter, security, etc.
That’s as much as I’ll give away.
As i’ve said elsewhere, I know people who are willing to pay over $2k/wk but still can’t find a place.
We rented for about 7 years as we moved around the world and then we bought about 4 years ago. As things tend to happen, we decided to move in July this year and are once again renting. I thought I would give you some idea of the factors that have influenced us
Location – we want to live in a certain area and house prices are so high it is cheaper to rent
Location – as in halfway between where my husband and I live
Number of bedrooms – we have 2 children and also a study is essential due to the type of work we do
Yard size – with 2 kids we wanted room for them to play
Air conditioning – lets face it temps in Summer in most of Aust are extreme and air conditioning that is effective is essential
Condition of property – has it been well looked after, has it got a reasonably modern kitchen and bathroom
Security – suburb, back yard, window locks, screen doors.
Now we are only representative of one group of renters as renting is a choice we make not a situation we are forced into. We own 3 properties and are looking for our 4th, at this point we would only stop renting if we moved into a house we were renovating.
Cheers
Ruth
Scott No Mates wrote:I can't remember which of the management theorists (Maslow, Hertzberg….) who came up with the 'hierarchy of needs' ie food, shelter, security, etc.It was Maslow.
Good point Scott.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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