The next generation are changing society forever, they are driving change in a big way and it is all about them.
Instant gratification is one way to explain it, but it all really comes down to convenience and it is gradually changing our lives and interestingly influencing our property markets.
I was listening to Tom Corley speak to our high net worth clients on the Gold Coast recently and he was talking about the way the credit card changed the world.
For this first time in history, people could have what they wished for right away rather than saving the money for 4 to 6 weeks.
A new TV, clothes and many items that may have been out of reach or taken months or years to save for back then, could be yours at the swipe of a card.
And so it began… …Instant Gratification.
Think about the younger generations today, everything from money to food or a camera are all within reach on their phones or devices.
Don’t feel like cooking dinner — boom, push a button and food will be on your door within minutes.
What does this have to do with our property markets you may well ask.
It all gets back to that one word — Convenience.
When people are choosing where to live this is becoming a key consideration.
Sure, there are bigger priorities like employment, children’s schools or maybe even green space, but convenience is becoming a key priority also.
They want to be bale to live in a location where they can scratch their instant gratification itch.
Wake up in the morning and take a 2min walk to grab a coffee and some breakfast after walking the dog or playing with the kids in the park.
Taking your partner out for a nice meal with a bottle of wine and walking home instead of arguing over who has to drive.
Walkability is the new buzz word and there is now even a website where you can get a Walkscore or convenience rating.
As our roads get more and more congested, travel times will also get longer and longer.
We are finding that locations and suburbs that are providing various elements of convenience are performing significantly better than areas that are not.
In fact in Sydney their most “walkable” suburbs often outperform the average by up to 20%.
The need for the next generation to have everything located on their doorstep will continue to create stronger demand in areas, far and above areas that do not offer these conveniences.
Tick boxes can include : Shops, cafes, pubs, restaurants, movie theatres, bowling alleys and public transport, the list goes on…
It is not just the next generation that is driving these changes, retirees and baby boomers are also changing their lifestyles and heading towards convenience.
In the past they may have sold the big family home and headed for a sea change or a tree change, but now they are staying put and just downsizing into these lifestyle areas and enjoying the benefits.
They are also electing to stay closer to family, doctors and hospitals.
As property investors, it is important to keep a handle on information and trends associated with our population.
One trend that is becoming more and more evident is the need for convenience in our lives.
The way generations have lived in the past is changing.
It was always the dream to buy a house on a big block of land, but now the next generation are trading big backyards for lifestyle, smaller dwellings and convenience.
Not to be out done, at the other end of the scale, retirees are also following the same trend.
This will lead to higher and higher demand in areas with lifestyle precincts — cafes, restaurants, pubs, green space and public transport.
Understanding these trends and applying it to your investment property decisions could lead to superior returns as some of Sydney’s best performing suburbs are already highlighting.
Conversely, ignoring these trends will leave your portfolio dramatically underperforming.
Demand for the humble house and land, is on the decline in areas away from our major hubs and convenience is the new black!
Read more: propertyupdate.com.au