Daily BulletinDaily Bulletin

The Conversation

  • Written by Jenni Henderson, Editor, Business and Economy, The Conversation
image

Generations X and Y are becoming just as, or even more aggressive, than the baby boomers as investors. An example of this are the “rentvestors”, who still don’t live in their own home, but have an investment property.

There’s been a change in culture over the generations when it comes to the property market, says researcher Ilan Wiesel from the University of Melbourne.

“It’s the shift from housing as a home, as a right, to housing as a commodity,” he says.

This is reflected in that 60% of household wealth is in people’s homes. But for younger people, like Generation Y, there are some who choose to move around for work so tying themselves to one location doesn’t have the same appeal.

Looking at the baby boomers, there are two types of security that drive people’s feelings about property. One is a sense of financial security but another is tied to a sense of continuity, in knowing you have a home and how that affects your identity.

If you look at the advertisements for properties through the generations, certain aspects of these changing ambitions are highlighted, says researcher Robert Crawford from the University of Technology Sydney.

After the war and the great depression, people felt hard done by and that it was time for a reward, that reward was owning a home.

“The advertisements really play on this, but it’s a dream,” says Crawford.

In the advertisements of the 1980s this changed again as size and location of properties became more of a feature than just owning a home.

“As more and more people begin to realise their dreams of home ownership, the next [point] is - owning a home isn’t as much of an achievement, so I'II have to own a particular size of home,” Crawford adds.

The rental market is also changing with generations, as more renters have a high income and rent for longer, says Professor Kath Hulse from the Swinburne University of Technology.

In comparing this to other countries, Hulse says there is a culture of treating tenants differently too.

“Germany has a very stable rental system… there’s a lot more security of tenure and it’s very common if someone sells the house, to sell it with the tenant, they don’t have to get out.”

“Whereas in our case it’s almost automatically assumed that if you buy a house with a tenant or if you want put your house on the market, the first thing you do is to ask the tenant to leave,” she says.

Over time some policies, like the First Home Buyers Grant, have had some impact on changing the behaviour of people in relation to the property market but with the danger of a flow on rise in house prices.

“Part of it is to make the rental sector a better place to live, with better more modern regulation and better quality of service… and then people might have a real choice as to what they want, rather than feeling like they have to move into home ownership,” Hulse says.

Authors: Jenni Henderson, Editor, Business and Economy, The Conversation

Read more http://theconversation.com/business-briefing-how-the-attitudes-of-the-next-generation-are-changing-the-property-market-74538

Why degree cost increases will hit women hardest

arrow_forward

Curious Kids: how did the first person evolve?

arrow_forward

New Home Checklist – First-time Moving Into a House

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Prime Minister National Cabinet Statement

The National Cabinet met today to discuss Australia’s COVID-19 response, the Victoria outbreak, easing restrictions, helping Australians prepare to go back to work in a COVID-safe environment an...

Scott Morrison - avatar Scott Morrison

Business News

Reinventing The Outside Of Your Office

Efficient work is a priority in most offices. You need a comfortable interior that is functional too. The exterior also affects morale. Big companies have an amazing exterior like university ca...

News Company - avatar News Company

Kaspersky and Ferrari partnership: tailoring cybersecurity for an iconic brand

Kaspersky is commemorating the 10 year anniversary of its strategic partnership with iconic, global brand - Ferrari. The cybersecurity company is a sponsor of the brand’s Formula One racing team...

News Company - avatar News Company

Instant Steel Solutions Review

Are you keen on having the right guidance, knowledge and information about the right kind of steel purchases for your industries? If yes, then you are in the right place. There is no doubt that ...

a Guest Writer - avatar a Guest Writer



News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion