Internet access grows more important with each passing day - so much so that in 2016, the United Nations declared it a human right. It's so ingrained in our day-to-day lives that poor internet connections can now have a serious impact on our productivity and social lives. That's why demand is growing for apartments in suburbs that are ready for the National Broadband Network (NBN).
So, what exactly is the NBN and how should you be incorporating it into your real estate investment strategies?
What is the National Broadband Network (NBN)?
In a move to future-proof Australia's internet connectivity, the federal government is funding the NBN. This initiative involves the replacement of outdated connectivity infrastructure across the entire nation.
As the NBN rollout progresses, more and more suburbs will have access to faster, reliable internet than ever before, decreasing network congestion. The change generally won't mean that Australians need to switch provider - just that they'll have to opt into a fixed-line NBN service plan.
As the NBN is replacing existing ADSL and phone lines, it will be necessary to make the switch before the existing services get turned off.
How does NBN impact the value of a property?
Given how much we've come to rely on the internet, it stands to reason that Julian Nachmias, NBN General Manager of Build Partnerships, claims good internet access has become non-negotiable for many home buyers.
"We're seeing that about 65 per cent of home buyers would consider negotiating a lower price if they can't get the broadband that they need," claims Nachmias, referring to research carried out by NBN Co. "They're seeing it as almost like a detractor if I'm going to buy this new property and it's not going to have high-speed broadband, then why on earth am I paying this price?"
The same feeling can just as easily apply to would-be tenants. So, when selecting your next investment apartment, take the time to find out if the apartment building is connected to the NBN's fibre-to-building technology.
How can I find an NBN-ready apartment?
Plenty of metropolitan suburbs are already NBN-ready, while work has commenced in many others. The best way to find out if your suburb of choice will be attractive to the growing population of internet-dependent tenants is to use the address checker on the official NBN website.
For help understanding every consideration to be made when investing in property, speak to us today on 0419 898 898.