Census stats

From: Nigel W


What implications for property investors do people see coming out from the trends revealed in the Census?

For example, the Census indicates that there are more lone person households than in past years...the population is aging etc...

Here's a bold, and perhaps controversial, statement to kick off...there will be an increased demand to both rent and buy one and two bedroom units (the 2nd is usually used as a study anyway) with security and easy access... [not saying I necessarily agree, but perhaps one may draw this conclusion from the Census data???]

Let's get some debate going...what does the "changing face of Australia's population" mean for investors?
 
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Reply: 1
From: John P


I'm inclined to agree with you Jeremy but I think that this has been the case for some time. There is a book called "Home Truths" by Andrew Beer and Blair Badcock that reinforces this trend with many compelling statistics. (Eg) The size of the family unit is getting smaller, many people work in a "mobile" way thus decreasing the need for an Owner Occupied Property, graduates are leaving uni with an accumulated debt that makes it difficult to save for a deposit and therefore have to rent... etc etc. A pretty good read. I think both of them from memory are professors at one of the uni's in Adelaide.


John Poulos
Resi Mortgage Corp.
0412 588986
 
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Reply: 1.1
From: Mark Pardi


Bring on the one bedroom units.

An ever increasing trend which started to develop a few years ago.

Single Households due to age, divorce, and plain and simple lifestyle choice are more and more prevalent.

Also the increased number of developers building one bedders and the increased prices of late due to supply and demand is also very evident.

The ultimate products at the moment are the one bed with a study or room under 10sqm with no door do to speak of.

A recent DA I was working on for a client featured large 2 bedroom units. The council specifically asked the developer to reduce some of his 128sqm 2 bedders into 1 bedders of about 60sqm so he followed their recommendations.



Mark Pardi

General Manager

Property Buyers Network NSW Pty Ltd
 
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Reply: 1.1.1
From: The Wife


I dont buy 1 or 2 bedder units, so I am not familiar with them, but do you think the 1 and 2 bedders are tommorows slums or "projects"? just curious on peoples thoughts?
 
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Reply: 1.1.1.1
From: Jakk Bass - The SLUM LORD


G'Day All,

Isn't funny how one mans potion is another mans poison.

Considering that I now own 30+ 1 bedders, I would probably be considered the "SLUM LORD"

I wouldn't actually call them 1 bedroom units, lets face it, they are 1 bedroom flats and quite simply I cant get enough of them.
These sort of properties are they first things I look for in an area.
Usually at least 30 years old and most in need of renovating to so some extent.

I only buy them if I feel I can change them to cash flow neutral or better and these properties now represent over 70% of my total holdings.

I have no shortage of tenants and the only drawback is that you do get some turnover of tenants but the vacancy factor of these flats is probably no greater than a couple of weeks a year overall.

The main concern I have is that should a block of flats be destroyed by fire etc. then I doubt I could rebuild them with current council planning controls.
But touch wood this aint happened to me yet and I hope that I never have to face this problem.

regards
Jakk - "The future SLUM LORD"
 
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Reply: 1.1.1.1.1
From: Nigel W


That's amusing Jakk. I have a running joke with some of my friends and family that my ambition in life is to be a slum lord so that I can go on A current Affair and give that annoying investigative reporter they have a good thrashing!

30+ that's pretty impressive. Can you give us the "Jakk Bass" story about how you managed to accumulate this many?

Cheers
 
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Reply: 1.1.1.1.2
From: The Wife


Oh Nooooo, I didnt want to make people think of the words " Slum Lord" , eeeek.

I was just curious,

This discussion for me started over a cashflow game a while ago when I was asked if I would invest in slums? ummm....

and then asked what makes a slum? ummm...

and then accused of creating slums ummm....because I am buying multiples so cheaply and obviously must be creating slums, ouch!

I have since then been unwell and laid up in bed and have been pondering these thoughts, (obviously far to much time on my hands). So it was a question I wanted to ask. I probably should have pointed out that I dont buy 1 or 2 bedder units UNLESS I can buy the whole block, ( so in effect, I guess I do buy 1 and 2 bedder units).

I shall now go and ponder something else :eek:)
 
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Reply: 1.1.1.2
From: Glenn Mott


I have purchased 2 single bedroom flats in a small (12) complex with nice gardens on the ground floor 2km from the Perth CBD.

Before moving into the first one, which was bought for 73k, I spent about 11k on it, including new kitchen, carpet, tiles, french doors, bathroom, wooden venetians, paved courtyard (50sqm), pergola over courtyard, garden shed, front load washer and fridge.

After living there for 12 months, I moved to Sydney and was able to find a tenant to move in the day that I moved out. She was happy to pay $140 per week rent. Prior to the reno, the flat was rented for $100 per week.

Total spend:

73,000 purchase
11,000 renovation
3,000 stamp duty and transfer costs
------
87,000 total

7,280 rent

8.3% gross return


The second unit (purchased for 79k) is currently undergoing the same renovation as the first. Others have been able to purchase better returns that this after experience, this is something I would like to do as well in the future, but for now I am learning a lot.

There has been no problems finding tenants for either property.

Glenn
 
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Reply: 1.1.1.1.3
From: Jas


> From: "Jakk Bass" <gk@start.com.au>

Hey Jakk

When I started investing, I bought a range of properties, to see how
they'd run. So I own a 1 bd flat, a 2 bed townhouse and so on.

The 1 br is doing fine. I haven't had a vacancy yet. (but that's the
ACT all over right now). It's funny cause its basically the same flat
you mentioned - over 30 years old, needed a reno, and is nicely +ve.

The 2 bd townhouse I bought is very interesting. It doesn't have a
bathroom as such. It has a powder room downstairs, and each bedroom has
its own ensuite. The set up doesn't attract couples, but house mates,
so I have had higher turnover there. Currently renting it out to two
brothers,


Overall I prefer the one bedder. I get one person, so don't have to
worry about house fights and so on. I'd be happy with buying more.


Jas
 
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Reply: 1.1.1.2.1
From: H T


I own a couple of 1 bedders too, but will bet pounds to peanuts- whatever that means, that some of those new concrete slab blocks along st.kilda rd will be the slums of the future. no doubt about it, those things are cheap and the whole area looks like a great inner city slum of 2020.

ht
 
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Reply: 1.1.1.2.1.1
From: J Parker


For my two cents worth, I think the money is going to be in accommodation that caters to the aged- ie; lowset villas/units that have easy walking access to all facilities. (1-2 bedrooms) With more lone households that contain the elderly there is sure to be more demand. Maybe we should all be looking to develop!!

Cheers, Jacque :)
 
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Reply: 1.1.1.2.1.1.1
From: Jakk Bass - The SLUM LORD


G'day all,

With reference to Nigel appearing on A Current Affair, Count me in, and the baseball bat I will also bring.

It will be on for young and old, we'll teach those so called reporters to have some respect for us salt of the earth, pillars of the community, entrepruenarially brilliant SLUM LORDS.

And should one of these reporters just happen to be one of our tenants, we'll jakk (no pun intended) the rent up as well.

As for the Jakk Bass story, when written I am quite sure it will outsell "Gone with the Wind" and Nigel, I'll promise you will be the first to receive a Gold inscribed, Leather Bound Collectors Edition Hardback.

Seriously, when I get a little time, this week I'll only be to happy to oblige as I must admit I have been most inspired by some of the stories on here and tis only fair that one gives and not only takes all the time.

..anyway I'm off to reign supreme over my SLUM KINGDOM and see what more I can get out of the peasants.

regards
Jakk the SLUM LORD
(the investor formerly known as Jakk Bass)
 
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