More Australians are living in the rental homes they bought
This new phenomenon of having a “bug-out” place seems to be the investment trend for 2022
Many Australian experts believe that homebuyers will increasingly invest in rental homes and choose to live there themselves for periods over 2022, according to Domain.
This new investment trend known as ‘bugging out’ – somewhere to retreat to in the case of emergencies like the pandemic – is becoming more widespread among most investors.
Mike Mortlock, director of MCG Quantity Surveying, said, “What we have discovered is that a quarter of people are now living in their property before they rent it out as an investment.”
“This is so interesting as, in some respects, even though property advisors would say this is a poor investment strategy, this is happening more and more. People like to have a spread of options so they can disappear to somewhere else, like an investment property, if something goes wrong.”
Kevin Brogan, national director at Herron Todd White, also recognises this new phenomenon and predicts it will continue through next year.
“We’re seeing this crossover between rental property and owner-occupied property,” he says.
“People are buying investments, and then choosing to live there for two to three months – perhaps in a more conducive environment than their own homes that are closer to their work – as a “workstation”, and then rent them out the rest of the year.
“The nexus between work and the office has been broken to a degree and we’re now seeing dual-purpose homes that the owners can use but also rent out.”
Most experts also believe that property prices in 2022 will rise, but at a different pace to this year.
Despite the fact that no one yet knows how soon interest rates might be raised by the Reserve Bank, the system still allows most investors peace of mind.
More: Australia’s housing prices expect 22% increase by end of 2021
“We haven’t had an interest rate rise now for 11 years,” says Peter Koulizos, chair of Property Investment Professionals of Australia.
“Australian residential property is very resilient, which you can’t say of some commercial property. But we will see a continued movement away from Sydney and Melbourne to cities like Adelaide, Hobart and Brisbane, and to the regions,” he added.
The Property Report editors wrote this article. For more information, email: [email protected].
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