Size DOES Matter – Regardless of What They Tell You!

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Last weekend we were away from home and staying in the city. I have to say that I’m the first to admit to loving the luxurious environment of a 5 star hotel and all that goes with it!!

However, there are times when that’s not the type of accommodation we are after.

These days for lots of our short trips away from home we try to avoid paying through the nose for expensive hotels, shiny lobbies and costly goodies from a bar fridge.

Instead, we will generally find a place close to our needs through www.Airbnb.com.au . If you’ve never checked this site out before – you should  You can get great accommodation deals in loads of locations and at a fraction of the cost of most hotels and motels.  It’s also a great way to increase your income by being a host with your own property (but that’s a post for another time).

airbnb scarboroughThe apartment we booked this time was right on the Scarborough beachfront in Perth. It was a 3 bedroom, 2 bathrooms apartment that a young couple rent. As the male partner is often away with his work, they have decided to rent one of the spare rooms out to folks like us through the Airbnb website. Their rate per night is $100 and for this we had our own private bedroom, bathroom, full use of the kitchen facilities and were provided with some simple breakfast supplies. Bargain I say!

During our stay I couldn’t help but notice how simply (yet tastefully) the apartment was furnished. And in the kitchen cupboards there were just 6 cups, 6 plates, 6 wine glasses – you get the picture.   The whole weekend I kept laughing to myself as I thought of all the accumulated ‘things’ that filled my cupboards at home!

SIZE DOES MATTER…

So here we were, staying in a place that was absolutely perfect for a working young couple. Great location straight across from the beach, spacious, a couple of spare rooms for friends, an office, a hobby room (or room to rent ) and a shared bbq area and swimming pool within the complex.

This lock up and leave environment will mean any free time they have can be spent doing fun things. This is obviously their preference instead of tending to a huge garden, cleaning rooms that never get used or having shelves filled with dust collectors.

When you are trying to choose an investment property, it’s easy to get distracted into looking at properties that you would like to live in; somewhere with lots of space for your ‘things’. But it’s important to remember that young working couples make up a huge portion of the rental market these days and their needs are very different from yours or mine.

It would be a wise move to find an ideal investment property that meets the needs of these type of people. They generally have a large disposable income. They love to be close to amenities like transport, beaches, coffee shops, and restaurants.

Size Does MatterTHE RIGHT SIZE FOR THE RIGHT TENANT

You must match the type of property you buy with the demographic of people living in the area who are going to be your main rental pool.   This apartment close to the beach is a great example. Another example is buying a 1 bedroom 1 bathroom apartment close to universities or hospitals.

Buying a property that meets the needs of the rental population within a close radius will help to ensure you are never without a tenant.   On the other hand, trying to rent out a large house with a spacious garden and sheds could spell disaster if it’s in a location where the population is largely made up of single or young couples.

Even though you may not like the idea of living in a small, simple space – there are many for whom that is just perfect. Some of the best returns on investment can come from small apartments or units.

I’m pleased to say we have three properties in our portfolio that would fit into this category. One is 6km from the centre of Brisbane, one is 7km from the city of Perth and the other one is 6 km from the city of Perth in another direction. All of them have proved to be very profitable for us.

When it comes to investing in property, bigger is not always better. And yes, size does matter!

What about you? Comment below if having a smaller unit or apartment feature is something you would like to have or do have in your property portfolio?

Here’s to your success!

Fay McLean

 

P.S. Check out Airbnb today and see what’s available for when you’re next away from home and want a great place to stay that won’t cost you an arm and a leg 



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3 Responses to Size DOES Matter – Regardless of What They Tell You!

  1. Julie April 28, 2015 at 9:44 PM #

    Very valid points Fay. It’s wise to know your target market and deliver what they want.
    Julie recently posted…Tips from Neale Whitaker: How to decorate like a pro designerMy Profile

  2. Fay McLean April 29, 2015 at 2:24 PM #

    And not just wise Julie – it’s essential 🙂
    Fay McLean recently posted…Size DOES Matter – Regardless of What They Tell You!My Profile

  3. Mich January 13, 2016 at 10:27 AM #

    Great points Fay! Investing in a property with great demand is always a top priority!
    Mich recently posted…7 Practical Tips That Can Help Keep Your House Warm (And Save Energy Cost) During Winter SeasonMy Profile

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