Millenials – the new landlords?

A new wave of property owners are moving through, with millennials looking to make their mark on the property market.

As a landlord, there’s a good chance that you may currently be renting your property to a millennial. That is, someone in their 20’s and 30’s.

Generally speaking, this sector of the population is usually finishing university, returning from living abroad or starting out in their chosen careers. Conventionally, unlike previous generations they have been seen to be ‘uninterested’ in home ownership at this stage of their lives.

This appears to be changing, with the large majority of the millennial population looking to property in order to provide stability moving into their future.

A recent galaxy poll conducted earlier this year by realestate.com.au, revealed nearly one third of those surveyed have plans to buy property this year.

This includes upsizing their home, investing in property, moving to a new location or purchasing their first home. The poll also revealed that two out of five believe now is a good time to buy with low interest rates, a cooling of house prices and less competition from overseas buyers as good indications. For first home buyers, where it applies, the current first home owners grant is a big incentive to get into the market. Furthermore, there is a lot of interest in buying property for the sole purpose of renting it out.

While it has been suggested the millennials are extremely conservative with their capital, with higher education debts and the cost of living a common concern, it seems that concern may be shifting, with young buyers looking to start their property portfolio earlier and strategically thinking about property purchases with the intention of setting themselves up for the long term, and even for retirement.

What this means is that your current tenant, as well as today’s first home buyer, may make up a sizable portion of tomorrow’s landlords.