Home video guides What is Build to Rent?

What is Build to Rent?

By Michael Yardney

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Published 19 Aug, 2019

Build-to-rent is proving to be a fast-growing global phenomenon and represents a major shift in real estate ownership as we know it.

However, in Australia it is an alien concept.

Until now.

rlier this year Labor put build to rent under the spotlight when it announced proposed reforms to taxation around build-to-rent as part of their housing platform to create more affordable housing.

So what is it, and will it work in Australia?

What does it mean for mum and dad property investors and what does it mean for tenants?

They are the questions I’m going to ask today of Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au.

Watch as Andrew and I discuss:

• What is build-to-rent? The concept is that the private sector would deliver hundreds of thousands of affordable rental dwellings over coming decades. It might sound like an ambitious dream and is unlikely to work in Australia without significant tax incentives

• Why is everyone talking about build to rent now?

• Can build to rent work?

• It requires a significant buy-in from government to make it feasible – land tax exemptions, new planning codes, tax concessions, amended tenancy laws

• Why hasn’t build to rent taken off already?Australia has an overwhelming home ownership culture – this is set to be reinforced by our increasing Asian communities

• Will it solve the affordable housing (rental) issues in Australia? Affordability is now at peak levels and the level of first home buyers is above average and rising.

• What is the future of the build to rent sector? It is really a strategy by the big end of town to convert government funds (taxpayer’s money) into profits under the guise of improving affordability

With thanks to PropertyUpdate.com.au and MyHousingMarket.com.au

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Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog.

Read more articles by Michael Yardney

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

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