Build-to-rent should be Australia’s future, property pundit says
Building developments for the sole purpose of renting could help tackle housing affordability problems, a property industry leader has claimed.
Building developments for the sole purpose of renting could help tackle housing affordability problems, a property industry leader has claimed.Mirvac chief executive and Property Council president Susan Lloyd-Hurwitz has told the QUT Business Leaders’ Forum that a build-to-rent strategy is “something that should exist in Australia”.
“It’s an opportunity to have much more affordable housing,” she said.
Lloyd-Hurwitz said build-to-rent didn’t exist in Australia for a host of reasons, including the low yield caused by tax structures.
Renters could face tough market ahead
“It doesn’t exist as an asset class, but elsewhere in the world build-to-rent is the largest real estate investment asset class,” Lloyd-Hurwitz said. “Investment asset class is the most highly valued income stream in real estate but in Australia, we insist on thinking about it as a capital gain play and that is what stops institutional income-focussed groups from taking on build-to-rent.”
Lloyd-Hurwit urged all levels of government to support the build-to-rent industry. She pointed to the UK, saying build-to-rent did not exist in the country six years ago, but now represents £6 billion in development.
Latest home loans headlines
- RBA survey: 63% of experts say Sydney lockdowns could cause another recession
- UBank cuts and raises fixed rates: Here’s where you’ll find the biggest savings
- CBA’s new 0.99% green home loan: Who’s eligible + how to get it
- Property pump persists: 3 million Australians plan to buy before 2022
- As lockdown tightens, what relief are banks offering for home loan customers?
Image: Shutterstock
