Experts believe that the concept of build-to-rent will make it easier for both property investors and buyers to solve the affordability crisis.
Built-to rent was a popular market in the United Kingdom, and then in the United States. This form of housing development is slowly becoming a popular trend in Australia.
How build-to-rent works
These developments, often owned by institutional investors are built-to rent and are intended to be rented. Tenants have the same experience as homeowners, with long-term leases available. Mike Myers is the National Affordable Housing Consortium’s managing director. He stated that it provides affordable housing for people who live in the inner-city suburbs.
“Build to rent can offer tenants a similar experience to owning a home. It allows neighbors to stay put and not move in and out of their homes every six months. He explained that this allows for organic communities and not blocks of people moving in and out all the time to The Courier-Mail.
He said that building-to-rent could provide tenants with long-term security. They would be able to decorate their homes and keep pets, something they might not have with other rental agreements.
This will reduce fears about being denied entry to the property market or of missing out. Many millennials dream of buying a house, but find it difficult to make it a reality. According to George Earl, a Griffith University professor, this idea would be beneficial for all.
It’s saying that you don’t have to be a long-term tenant, and that you’re not second-class citizens. He stated that you might choose to rent for your entire housing career.
What can a build-to-rent do?
Property investors and tenants can have peace of mind when they invest in build-to rent developments.
“Build-to-rent is a great income opportunity. According to him, the stability of the tenancy’s income, performance, and stability are all very strong.
The UK’s built-to-rent industry is worth $108 million.
Interventions by government
Experts believe it will take joint government efforts for build-to rent to be a success in Australia.
It can be supported in many different ways by the government. There are federal and state ways to look at it. Mirvac Group general manager Adam Hirst
This is a rapidly growing sector that the government can support by offering the same tax benefits to developers as those who develop office buildings, supermarkets, and industrial buildings.
Hirst stated build-to-rent developments are similar to institutional real estate classes and should be subjected to the same 15% income taxes.