- 1 June, 2015
- PROPERTY MANAGEMENT
- Generation Y, Landlords, Investors
If you are buying an investment property in an area near a university or TAFE campus, or even just in a hip inner-city area, you might be looking to target Gen Y with your marketing for tenants. But how do you go about this? With changing attitudes towards property in younger people, there is a lot to remember before you set out to attract this tenant market.
For much of the Baby Boomer generation, the dream was a nice suburban home with a backyard for the kids and all the amenities for them nearby. However, times change. Nowadays, millennials tend to prefer homes that are close to the action, with restaurants, workplaces, campuses, shopping and nightlife all nearby.
This means picking a property in close proximity to all of this, which can mean expensive central locations. However, there are some good trade-offs.
Millennials Make Different Sacrifices
One important thing to remember is that Gen Y isn’t as tethered to the detached home, and is happier to settle for an apartment. About three quarters of migrants from India and half the immigrants from China arrive on student visas. Studio and single bedroom units are always in demand, as students need affordable central accommodation.
The bonus of this is that units and apartments are cheaper than houses, allowing you to buy a rental property that appeals to Gen Y and doesn’t break your financial planning.
An Ernst and Young survey found that 70 per cent of respondents feel Gen Y is great at leveraging social media into opportunities, as well as being the most tech-savvy generation. This could be taken into account when you actually market your home, opting for online channels rather than physical ones. Of course, consulting with your real estate agent might be a good first course of action.
Planning to invest in property
Investing in property continues to be a solid investment option with positive year-on-year growth levels across New Zealand. Investing in property if done correctly can deliver strong returns for New Zealand investors.
Here are some tips on how to make a wise property investment:
- Property should be viewed as a long-term growth asset. The focus should be on finding a property that meets key selection criteria such as close to infrastructure including transport and shops.
- Don’t borrow more than you can comfortably repay. Give yourself a buffer so that if there are future rate rises you will be able to afford the increase in your mortgage repayments.
- If you are buying to rent out the property, then buy where rental remand is high.
- Lastly, don’t expect tomorrow to be a better time to buy than today. Ask most successful property investors and they will tell you they still wished they had bought ‘yesterday’.