Never mind saving for a deposit — many of South Australia’s young tenants would be happy to seize the day and rent forever, according to a new report.
The 2019 Renters Report, released this week by property search website realestate.com.au, explored the attitudes, behaviours and concerns that young Australian renters (aged 18 to 39) experience around the country.
It found 16 per cent of respondents in South Australia would be happy to rent forever.
This was despite 39 per cent of SA respondents being in rental stress, which was defined as spending more than 30 per cent of their gross household income on the rent.
The report also found almost 40 per cent of young renters nationally were experiencing rent stress but the majority did not know they were in rental stress or simply did not care.
Debbie Copley, Senior Property Manager at LJ Hooker Kensington/Unley said young renters tended to have a preference for stylish, modern properties in the CBD of city fringe.
“Generally if they want long term (properties), they want something with all the bells and whistles — airconditioning, a dishwasher and so on” she said.
Being close to work, university and the night-life was also a priority for many young renters, she said.
This factor was also reflected by the report, which found more than 51 per cent of young people Australia-wide prefaced location over price as their most important consideration when choosing a property.
“They want to live in the now, which is why they are choosing to do the rental thing rather than buy,” Ms Copley said.
In contrast, she said older renters were more likely to settle for older-style properties, although they too looked for airconditioning.
In order to afford the rent, Ms Copley said young people often had flatmates.
“We’ve got a couple of properties where a couple of couples are renting together — it’s mostly students or young executive couples,” she said
Head of Property Management at Harris Real Estate, John Carey, said some of the long-term renters on his company’s books actually owned other properties but still chose to rent.
As such they ended up as both tenants and landlords on his books.
Mr Carey said a lot of young professionals, particularly those with accounting backgrounds, chose to invest their money outside the real estate market.
Others bought property as an investment in one particular location, while renting elsewhere, generally close to town.
“You get a bit of rent-vesting where people rent something else and buy something further from the city.”
Mr Carey agreed Adelaide’s CBD and inner suburbs were the hot spots for young renters.
“The young market is in the inner city from Brompton all the way around to North Adelaide, Norwood, Rose Park, Unley, Mitcham and Mile End.”
“It’s because of the lifestyle and access to the city itself- a lot of people make that lifestyle choice,” he said.