Have you ever thought about the impact that renting can have on your neighbourhood and your property?
New research suggests that it's time to forget the fears of renters, as they can actually have a significantly positive effect on your own home
According to the Real Estate Institute of Victoria (REIV), having a high number of people renting in your area might actually improve your home's potential for capital growth. This is because a high number of rentals is more appealing to investors, not just individual home owners.
Illustrating this with information from the REIV, median house prices grew by 67 per cent over the past 10 years in suburbs where less than 40 per cent of households were renting. On the other hand, where more than 40 per cent of households were renting, the median house price shot up by 81 per cent over the same period.
However, renting isn't the be all and end all of housing prices. Of course, some suburbs are thriving in terms of their house price growth even with a lower amount of renting occurring. There are so many factors that can come into play regarding your home's value – so if you're unsure on how to proceed in a quest to buy or sell, contact a property management service.