Is the Apartment Market Crashing?
Rentals are developing faster than the other portions of the housing market, edging out home purchases. In the recent years, all housing demands is filled by apartment rentals – a unique change to newer generations. Why are rentals now very popular? Why are people choosing to rent instead of buying property in Melbourne? Read on as we talk about the rise of rentals and how affects the Melbourne property market.
The housing bubble collapse and the following recession has shattered the long-time belief that you cannot go wrong with buying a house. And while the effects of the housing market fallout has already receded, with mortgages, foreclosures and housing values back to traditional values; one thing that has not recovered is every person’s desire to own a home.
Millennials are leading the way to getting Abbotsford townhomes for rent, and so many factors have been pointed out to contribute to this trend. For one, many young adults are taking their time laying their roots, with reasons ranging from travelling to just being not ready to commit to one place. Stagnant incomes and student loans have also made it hard to save up for a down payment, much more commit to years of paying mortgage.
Although the distribution age in the country shows that many millennials have reached the age of household formation and demand for homes, much of the demand is expected to be channeled into the apartment market. However, it is not only the millennials who are affecting with this development. Those over 55 years of age are also becoming more interesting with renting.
Getting new apartments at St. Kilda Road instead of buying is a sensible choice, especially for those who are looking to test the waters on real estate market. It is a great step towards owning, to ensure if the home life is really for you before actually committing to mortgage. Of course, renting in itself is attractive: there is no need for a large down payment. Sky-rocketing prices in urban areas can be a prohibitive down payment requirement.
When renting an apartment, be aware of utility costs, particularly heating and cooling. There are also maintenance requirements; make sure that the lease has clear terms when it comes to the upkeep of the property. Rental transactions are all quite the same, but it is important that you thoroughly discuss them with the landlord. Contact real estate agencies in Melbourne to give you a good idea on what to expect in the apartment market.