Looking for a newly built single-family home with a private yard, and low maintenance in a pet-friendly, low-density private community that is affordable? Who isn’t? I would also like to find a pot of gold at the end of a rainbow. There is a fresh quality of life option for renters and lessees. Read up.
Have you heard of Build-to-Rent? Overseas countries have been building this type of development, and they are now emerging in Australia. We will get into more details, pros & cons. The basic concept is this; developers will retain ownership when the building is complete, and you will rent your personalized home rather than owning it. This applies to single-family homes in planned communities and apartments as well.
The developer will manage and maintain the property, alleviating that cost and time commitment from the lessee. When the developer holds the internal financing, renters can enjoy more flexible lease agreements. More benefits of build-to-rent and developer management are amenities such as;
- BBQ Areas
- Yoga Centres
- Exercise Facilities and Equipment
- Swimming Pools
- Gardens
- Communal Working Areas
- Cinemas
- Outdoor Theatres
- Laundry
- Extra Parking
Similar to condo ownership or housing estate, without the homeowners association pushing people away from personal decoration and environment creation.
City centre living access is being encouraged by the QLD Housing Authority build-to-rent pilot project. Their plan will incorporate nearly 500 homes with discounted/assisted rent to prevent people who need to live in inner cities from being priced out of the market.
Sounds sublime. I expect the average cost for homes with all these amenities and included services to be marginally more expensive but lower overall cost of living vs. ownership.
In other countries, young professionals, newly married, and new families use these property types to build sound lease tenure for future ownership purchases. The bulk of tenants are under 40 years of age. Over 55 like this concept as well. Many have sold the family home, retired, and are looking for ease in accommodation. Build-to-rent is a good fit for over 55 tenants for many of the same reasons.
Sufficient regulations are needed to prevent developers/owners from becoming the overbearing internal housing owner authority. Take your time in reading the contract. A strong contract will protect both parties and not create future misunderstandings or issues at contract completion.
Australian states recognize build-to-rent (B2R) developments as a prospective means of affordable housing. Combining affordability, access to transportation, and proximity to employment will determine development locations. NSW is encouraging the category by reducing tax constraints for foreign investors while halving land taxes. VIC mirrors the 50% land tax reduction/exemption to promote these developments. These types of incentives will drive foreign and internal development while precipitating construction jobs, infusing taxes and spending into economic stability. When multiple states cut taxes, we should take it seriously. They never cut taxes.
Whether you are interested in your first adult residence or ready to enjoy life after work, build-to-rent properties are worth closer inspection. Live happily wherever you choose.
