Embracing Generation Rent
Have you been noticing the slow shift into becoming a generation of renters?
We’re are also continuing the trend of noncommittal relationships and opting out of purchasing houses too.
According to a report released by National Shelter and CHOICE, 31 per cent of Australians are now renting – that’s up from 25.7 per cent over the last decade or so. This, however, seems a bit more remarkable. For many, homeownership has long been the Australian dream. So what’s the deal?
Today, we’re going to break down this report’s data and discuss the advantages of renting over buying.
Everyone is renting!
It’s not just young singles renting, it’s a good mix of all generations. The report broke down the following living arrangement demographics of renters:
25 per cent: Living alone
24 per cent: Couples with children
20 per cent: Couples with no children
11 per cent: Living with flatmates or friends
11 per cent: Single parents
9 per cent: Living with parents/relatives
Why rent over buy?
The answer is quite simple: it’s all about affordability. The Australian property market is notorious for being a little pricey, so it’s taking people a little bit longer to get on the ladder. In fact, the report detailed that property prices have increased 23 per cent in the past five years alone. Renting makes living in or near cities cheaper and more flexible – as 50 per cent of survey respondents stated that they rent because they can’t buy their own place.
Australians are renting for longer, with 43 per cent of them renting for 10 years or more. That’s a long time to be renting, so next, we have to ask – who makes up this renter demographic?
Choosing to rent isn’t just unique to Australia however, developed countries around the world like Germany are also seeing more renters than ever before. While affordability might be one of the main reasons people opt to rent, there are still many advantages to the move.
The biggest advantage, of course, is the flexibility it virtually allows you to move wherever you want, whenever you want.
For some, it’s easier not to be locked in to a mortgage as they raise their family and save for a more permanent place, even if that is later down the road than you originally planned. Budgeting for your first home deposit can take time, especially when you’re saving up for your dream home, so renting is a good option to help you save while you wait.
The biggest advantage, of course, is the flexibility. It virtually allows you to move wherever you want, whenever you want. With a little bit of notice, you get to move to a new neighbourhood without a worry.
Additionally, you don’t have to worry about the big expenses that come with home ownership. If something breaks, your landlord may be required to fix it. This covers everything from a broken dishwasher to a leaky roof – these can be costly repairs, so it’s nice to not have to worry about them. You don’t even have to worry about real estate taxes until you’ve saved up enough to properly be able to pay for them. You’re expected to budget one percent of your home’s purchase price towards maintenance each year – when you rent, you can forego this expense.
Looking for a place to rent yourself? Let our team here at Laing+Simmons help! Contact us today and we’ll find you the perfect place to settle into.