When you're considering investing in rentals in Adelaide, one of the things you might be thinking about is living standards. After all, when tenants choose a home in the South Australian capital, they will likely balance everyday costs – like rent – with disposable income. The SAS-NATSEM household budget report shed some light on how households in the state are faring financially and could provide some solid incentives to consider property management in Adelaide.
The study examined a broad range of factors to determine household standards of living across the country. In good news for Adelaide investors, South Australia performed well against other states. While the cost of living increased 1.7 per cent over 2014, income growth surged past this level. As a result, South Australians enjoyed a little more disposable income in their back pocket. Living standards rose 1.9 per cent – and South Australians secured an additional $1,392 in the bank.
This could be auspicious for those with property in Adelaide. Whether you're selling your home or renting it out for a bit of additional cash, the boost in disposable income might mean people are more willing or able to choose higher rents. In fact, the report showed that there wasn't much difference in cost between renters and purchasers across the country.
The results in Adelaide reflected the national trend. Australian living standards jumped 1.2 per cent off the back of falling petrol and energy prices, and households nationwide found themselves $988 wealthier. Falling interest rates also had an impact, but there was a split between renters and owner occupiers. While purchasers saved around $616 a year on average, renter households only benefited by $48.
With households across South Australia getting ahead in 2014, it's worth getting in touch with the team at Ray White Adelaide to figure out the right rental price for your property.