HOW TO INVEST IN BUILD TO RENT, THE MOST EXCITING NEW ASSET CLASS IN AUSTRALIA
Build to rent (BTR) has been a hot topic in global real estate circles for the last few years.
In the United States, Build To Rent (“BTR”) is generally referred to as Multifamily real estate, which is a widely held and strategic commercial real estate asset class. At roughly 25% of the U.S commercial real estate stock, the multifamily sector accounts for the second-largest share of institutional investors’ real estate holdings, lagging only the office sector.
In the United Kingdom an increasing number of projects coming to market In recent years has meant Build To Rent is no longer restricted to industry insiders, but in Australia Build to Rent is just beginning and opportunities for individual or smaller investors are restricted.
Build to Rent may be a growing global phenomenon but it’s still very new in Australia. Build to Rent was thrust into the spotlight in Australia 2019 as a part of the 2019 federal election campaign Labour proposed taxation reforms for Build To Rent in Australia.
BUILD TO RENT PRIVATE INVESTORS WOULD NEED AROUND AU$1 MILLION TO BE ABLE TO INVEST DIRECTLY IN THIS SECTOR, UNLESS THEY INVEST IN A PROPERTY FUND OR REIT.
HOWEVER, WITH THE GROWTH POTENTIAL OF THIS ASSET CLASS, FOR INVESTORS WITH THE CAPITAL REQUIRED,DOUBLE DIGIT RETURNS ARE POSSIBLE FOR CAREFULLY PLACED INVESTMENTS.
Build To Rent in Australia: What is a build to rent scheme? What about build to rent tax, build to rent housing,
build to rent apartments and build to rent affordable housing?
WHAT IS BUILD TO RENT: Build to Rent describes the process by which residential properties are purpose built for the private rental sector.
In most cases, Build To Rent is done by large property development companies, investors and commercial landlords. Build To Rent refers to a residential development in which all apartments are owned by the developer, often a managed investment trust, a listed property developer, a property fund, a bank or pensions company and managed by a professional property management company, and leased out to tenants.
Build To Rent is opposed to the common build-to-sell method, where a developer builds a residential development and sells the apartments to individuals to either live in or rent out as an investment. Build to rent is part of a growing institutionalised housing market and is particularly attractive for institutions, both local, international and sovereign funds that want reliable, steady income as well as exposure to the residential property market.
Build To Rent in Australia is set to rapidly grow, with companies like Mirvac already involved in Build To Rent in Sydney.
Experts predict a build-to-rent (BTR) revolution coming to Australia
"Everything You Need to Know About "BUILD-TO-RENT".
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