Industry analysis: Why rentals in Bundy are on the rise
THE reality of owning a home is becoming a distant dream for many young people entering the property market, leaving long-term renting the most affordable solution.
ANP's Krystle Hall said she had noticed a certain increase in rental applications and identified a number of contributing factors.
"The last month has quietened down a little, but the prior six months was probably the busiest I've seen in my 12 years in the industry,” Ms Hall said.
Where previously the real estate agency would receive two or three applications per property, Ms Hall was seeing upwards of six.
"We have noticed a lot of people who are relocating are the working class people,” she said.
"It's doctors and teachers and mostly work-related reasons.”
From fully-furnished one and two bedroom apartments to four bedroom homes for the family, Ms Hall said they had a variety of tenants.
"We're seeing families are struggling to get into the purchasing market,” she said.
"Many can't get their foot in the door with the banks because of the strict lending environment we're experiencing at the moment.”
Another trend appearing more regularly was renters breaking leases before the agreed term was completed.
"Some people have had job transfers while others have been due to economic downturn and have had to downsize,” Ms Hall said.
"A lot of people are also sharing. You might see a family of four and then a friend, just to help lower living expenses.”
Renter Jacqui Mitchell moved to town in January from Hervey Bay and said while buying in Bundaberg wasn't something she was considering at this stage, it wasn't off the cards. "Renting is a short-term solution right now while I'm new to town,” Ms Mitchell said.
"I'll see how it is at end of this 12-month period, the home sickness is setting in a little, but Bargara is really beautiful.”
The 39-year-old science teacher bought an investment property 17 years ago but said the market had plateaued shortly after.
She said the house had doubled in value just four years after she bought it, but had not moved much since then.
"I'm renting that property to family while I'm in Bundaberg, but if I was to buy or build in Bundaberg I'd look to sell that on.”
Re-max property agent Scott Mackey said they had a lot of people looking at high end properties with executive rentals in high demand.
"We've got houses being rented for $450 a week up to $750 a week,” Mr Mackey said.
He's finding many of his clients have moved to the area for a short term and are not willing to sell their homes in other areas to buy here for the duration of their stay.
"We're getting all these people with degrees coming here for part of their career for a few years who are looking to rent and enjoy our lifestyle with bigger backyards, the ocean, the river, those type of things.
"A lot of these people are hospital staff, accountants and people in more professional jobs coming in for work.
"There is definitely a demand and I think the way we understand what a rental property is, is changing.”