Which One Grows More: Owner-Occupier Properties VS Rentals

Have you heard people saying that you should be buying properties which have more owner-occupiers occupants than rentals because owner-occupiers are the ones willing to pay at or above asking price, thus, the properties in the area have more chance for capital growth?

This is what we do at Easy Buyer’s Agent is that we are fully data-based in our research. We look at the 5-year and 10-year growth of the top 20 suburbs that have >45% rental properties VS top 20 suburbs that have >45% owner-occupiers and see which ones have better growth.

The results are very surprising. Over the past 5 and 10 years WA arguably has gone through the roughest patch due to mining bust. If we look at “5 YEARS”, the owner-occupier properties actually drop MORE in value compared to the rentals counterpart. Why? 5 years ago was arguably top of mining boom (2014-2016). At the time, many people were buying properties because they thought price would go up and up and up, and being owner-occupiers we thought they were OK to buy properties at or above asking price.

Compared to investors, investors generally have more conservative approach when it comes to purchase price. Hence, they experienced lesser blow.

However, when we look at longer term i.e 10 years, it seems that owner-occupier properties, on average, drop less in price. Actually, what we think is, owner-occupiers properties grow more in value so that, even when the storm comes, overall, they still perform better than the rentals counterpart.

Nonetheless, owner-occupier properties generally cost more to hold. When it comes for place to live, surely you as a Buyer would want a better suburb albeit more expensive.

So there you go….what other stats do you want to see? Write in the comments down below.

Looking to buy property in WA? You know who to call. Let’s just chat properties. Peace.

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