If you’ve decided to buy rental property in Adelaide, some of your first considerations will be looking for stock that will be sought after by renters willing and able to pay a good price.
For many landlords, this means turning to young professionals because they have good earning capacity and a mindset that is open to paying a premium to get what they want.
There are many ways to slice and dice your buying options but if we start with the real estate maxim of location, location, location, we can at least hone down to a short list to make your search more orderly.
My opinions have been informed by some of the many property investors we do conveyancing for, whose buying habits eerily coincide with the locations suggested by a recent RealEstate.com.au article.
Adelaide’s square mile of rental gold
According to the article, Rental hotspots for young professionals, in RealEstate.com.au, Adelaide’s best candidate locations for attracting young, professional renters are concentrated centrally.
Adelaide itself, North Adelaide, Eastwood and Mile End are the places young, career-minded South Australians are seeking rental accommodation.
In the article, these selections are attributed to Michael Nikou from Turner Real Estate who says the attraction is being able to ‘walk to work or easily access transport’.
Buying rental property in Adelaide demands clear thinking
While it is true that we have many clients who are property investors and landlords throughout the city, suburbs and regions, the evergreen magnet for renters who can afford to pay higher rents should be, as the article says, lifestyle, transport and culture.
Close proximity to retail and entertainment will always be a strong drawcard for young professionals, however, as cycling culture grips Adelaide with yet another Tour Down Under in full swing, we think landlords seeking this type of tenant could start thinking in terms of cycling distance rather than just foot or bus.
What that means is something for you to discuss with a trusted real estate advisor.
In the meantime, some discreet Lycra watching on weekday and weekend mornings might help you piece together some investment opportunities that cater for a breakaway group of young, professional renters looking for a place like yours in a location with just enough challenge for the daily cycle.
Of course there are numerous other factors to consider and, as your conveyancer, we’ll be alerting you to the extra considerations required if you buy units that are strata or community titled.